By The Gold Report
Source: Streetwise Reports 11/06/2019
The short-term outlook for the Canadian company is provided in a CIBC report.
In an Oct. 25 research note, CIBC analyst Oscar Cabrera wrote that Lundin Mining Corp. (LUN:TSX) “continues to offer investors an attractive combination of a strong balance sheet, operating execution and financed brownfield growth.”
This view comes after the metals producer posted “strong operating performance” in Q3/19, “supporting completion of expansion projects” and CIBC adjusted its model accordingly, Cabrera added.
Upcoming near- and medium-term catalysts for Lundin Mining are development progress at Candelaria and Neves Corvo and expansion progress at Chapada via exploration. Lundin has a site visit scheduled at Chapada on Nov. 8, Cabrera reported.
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The analyst commented that how Lundin Mining next allocates capital, whether to continued growth or to shareholders, “will be important to rerate” the company’s shares. Further, expansion potential at Chapada should improve Lundin’s valuation that currently trails that of its peers.
CIBC has an Outperformer rating and a CA$8 per share target price on Lundin, whose stock is currently trading at around CA$7.33 per share.
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Disclosures from CIBC, Lundin Mining Corp., October 25, 2019
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Important Disclosure Footnotes for Lundin Mining Corp. (LUN)
· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Lundin Mining Corp. in the next 3 months.
( Companies Mentioned: LUN:TSX,
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