International news within the industry of mining and metal, Nov, 15 2018
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Lundin Mining expects substantial improvements

Lundin Mining is a multinational minerals company with operations in the United States, Sweden, Portugal, and Chile. Lundin Mining is headquartered in Toronto, Ontario and trades on the Toronto Stock Exchange as part of the S-P-TSX 60 index. Photo: Lundin Mining
Lundin Mining is a multinational minerals company with operations in the United States, Sweden, Portugal, and Chile. Lundin Mining is headquartered in Toronto, Ontario and trades on the Toronto Stock Exchange as part of the S-P-TSX 60 index. Photo: Lundin Mining
Published by
Markku Björkman - 15 Oct 2018

Following Lundin Mining's downfall in the summer and the past few weeks, the valuation of the mining company has become more attractive. And the long-term outlook is bright, for example, a substantial improvement is expected on the cash flow front as of next year, writes Swedish periodical Affärsvärlden.

This means Handelsbanken Capital Markets in an analysis where the recommendation is lifted to buy from reduced and the target price is raised to 52 from SEK 50, as the news agency reported on Monday morning.

"As the valuation has become more attractive and the long-term outlook is bright, we estimate it's time to take a positive position on the stock," notes the bank.

The third quarter is expected to be quite clumsy, but a lightning in the mine is expected.

"We expect Lundin Mining's report for the third quarter, October 24, to be relatively weak. The price of copper, which accounts for more than 60 per cent of the company's exposure, has fallen by 11 per cent since the previous quarter and will weaken the result ", writes the bank and continues:

However, we expect the operational development to remain good and expect higher results in the next reports, supported by higher volumes and better prices "

"As the valuation has become more attractive and the long-term outlook is bright, we estimate it's time to take a positive position on the stock," notes the bank.

The third quarter is expected to be quite clumsy, but a lightning in the mine is expected.

"We expect Lundin Mining's report for the third quarter, October 24, to be relatively weak. The price of copper, which accounts for more than 60 per cent of the company's exposure, has fallen by 11 per cent since the previous quarter and will weaken the result ", writes the bank and continues:

However, we expect the operational development to remain good and expect higher results in the next reports, supported by higher volumes and better prices. "