The chief executive officer of Lundin Mining Corp. says the base-metals miner has “some work to do to get confidence back” after the recent sharp selloff in its stock. But Paul Conibear is also shrugging off any suggestions that the company was slow to disclose a damaging rock slide at its flagship mine.
Shares in the Toronto-based company have fallen roughly a fifth since Nov. 29, the date it disclosed a rock slide is hampering operations at its Candelaria copper complex in Chile. Production at the mine, which accounts for more than half of its revenue, will be 20 per cent lower next year than previously indicated, due to the slide. The company waited about a month after the slide happened to disclose the news to investors.
“It should have come out much sooner,” said Haywood Securities Inc. analyst Pierre Vaillancourt in an interview on Dec. 1. “It’s a material event and you can’t just hold on to that information.”
This past Thursday, a proposed class-action lawsuit seeking $175-million in damages on behalf of investors who acquired shares in Lundin between Oct. 25 and Nov. 29 was filed in the Ontario Superior Court against the company and a number of its officers and directors, including Mr. Conibear and chairman Lukas Lundin.
The suit, which was brought by Strosberg Sasso Sutts LLP and Groia & Company PC , alleges that Lundin “failed to make timely disclosure” of the rock slide to investors.
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