Lundin Mining (Buy, TP: SEK105.00) - Yield machine on Chile uncertainty
While the stock has suffered from political risk in Chile related to a proposed tax that could cut 2025e EPS by 25% on current conditions, we believe a yield machine is in the making thanks to its growing cash returns. We forecast a 2021–2022 dividend yield of 2–3% and FCF yield of 12–16% that can be utilised for extraordinary dividends or share buybacks. The share price has decoupled from the company’s underlying commodity portfolio, and we reiterate our BUY. That said, we have cut our target price to SEK105 (120).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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.