Lundin Mining (Buy, TP: SEK105.00) - 2021 lining up to be a golden year
Following a solid Q4 despite production disruptions in key assets, we have raised our 2021–2022e EBITDA by 9%, reflecting marked-to-market metal prices and FX. We believe Lundin Mining is set for a strong 2021 on: 1) 11% Cu-equivalent growth; 2) falling unit costs from favourable FX and volumes; and 3) relatively low capex-intensity. Combined with c75% exposure to copper/gold, we see ample scope for significant cash flow generation. We reiterate our BUY and have raised our target price to SEK105 (90).Lundin Mining is a holding company. Through its subsidiaries, Co. is engaged in the exploration for minerals and the production of base metals, with a focus on zinc.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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