Monday, June 16, 2025

Latest

Lundin Mining Sees BMO Maintain Price Target Following Q3 Earnings

Yesterday Lundin Mining (TSX: LUN) reported their third quarter earnings. Third-quarter cash flows were +$272.2 million, adjusted cash flows were $262 million, attributable net earnings were $122.4 million, and adjusted earnings were $106.4 million. Finally, adjusted EBITDA2 was $300.3 million for the quarter.

In a note, this morning, BMO’s mining analyst Jackie Przybylowski reiterated her C$12.50 price target and Outperform rating. She headlines, “First Blush – Turning the Corner.”

Przybylowski says that the earnings were in line with their expectations. Adjusted EPS came in at U$0.14; the street’s estimate was U$0.14, while her estimate was U$0.13. However, Przybylowski said that they are adjusting their full-year 2002 guidance, which includes lowering their production guidance at Chapada and Neves-Corvo but improving C1 cost guidance at Chapada and Eagle.

She says, “We were pleased to see not only earnings results that were in line with market expectations, but also positive commentary on recovery to the operations which have been challenged,” and believes that the market will look forward to focusing on the opportunities.

Przybylowski says that Lundin is moving away from the recent challenges that plagued the company, such as delays, a fatality at Neves-Corvo, electrical failure and damage at Chapada, and strikes Candelaria. Lundin is now moving towards opportunities as the company is ready to restart its ZEP construction project early next year. She believes that ZEP will be completed early next year and says, “Lundin has also made great progress at Chapada—currently milling at ~30% of capacity and should reach the full run-rate by late Q4/20.”

Przybylowski lists off a bunch of things she will be listening for management to hit on the call. First, is the comments on the Candelaria strike negotiations and how progress is going. The rest include:

  • An update on the Chapada expansion. While previously indicated that an expansion plan would be complete by November, the company was plagued by delayed drilling and slower operations due to COVID-19. The result is that this expansion plan is likely delayed as well.
  • Lundin currently has its net debt down to $65 million, making it positioned for capital returns in the form of dividends or buybacks. The current buyback program expires December 8.

Below you can see the changes in Przybylowski forecasts.


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.

Video Articles

First Majestic Silver: The Santa Elena Mine

Equinox Gold: Guidance Cut After Issues At Greenstone

Simply Solventless Q4 Earnings: So Much For Guidance

Recommended

Power Metallic Secures Jabal Baudan Project In Saudi Arabia

NexGen Energy Receives Approval For Site Expansion At Rook I Project

Related News

The Deep Dive Compiles Company Profile On Newlox Gold Ventures

Newlox Gold Ventures (CSE: LUX) is a unique gold name within the Canadian small cap space....

Saturday, January 23, 2021, 11:37:00 AM

Starr Peak Expands Drill Program To 20,000 Metres

Starr Peak Mining (TSXV: STE) has expanded its currently ongoing drill program. The company this...

Friday, May 21, 2021, 09:25:12 AM

New Found Gold To Commence Trading Today

New Found Gold (TSXV: NFG) this morning announced that it has completed its $27.3 million...

Tuesday, August 11, 2020, 09:06:42 AM

Trillium Gold Intersects 129.79 g/t Gold Over 1.30 Metres At Rivard

Trillium Gold Mines (TSXV: TGM) this morning reported the three latest drill results from its...

Tuesday, June 29, 2021, 11:47:00 AM

BMO: Activision Purchase Is “A Face-Saving Exit For Embattled CEO”

On January 18th, Microsoft (NASDAQ: MSFT) announced that they would be buying Activision Blizzard (NASDAQ:...

Sunday, January 23, 2022, 01:04:00 PM