Lundin Mining Sees BMO Drop Price Target Following Unfortunate Weekend
Lundin Mining (TSX: LUN) had a weekend of unfortunate press releases. The first of which was on Friday, where the company announced that they had a fatality at its Neves-Corvo mine in Portugal. On Sunday, they then announced that they had to stop committing to their guidance at one of its mines in Brazil following an electrical failure.
In a note from BMO Capital Market’s Jackie Przybylowski, Lunding Mining was downgraded on their 12-month price target from C$11.50 to C$10.75, while the firm reiterated their Outperform price target on the company. She says that these events “are likely to feed market concerns over the company’s recent operating track record.” However, Przybylowski believes that management can reconfirm its operations and its market messaging while it recovers from these events.
Przybylowski says that they have been hearing an increasingly loud concern from investors that Lundin’s strong track record of operating excellence has slipped but believes that management has an opportunity to address these events at the October 29th earnings call, “to take responsibility for any lapses in safety and/or maintenance, and to deliver a credible plan to restore the operations.”
Although a negative tone, she believes that the company can make improvements that will help mitigate the impact of this weekend’s news releases and drive investors optimistic about the company’s future.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
