Lundin Mining (Buy, TP: SEK88.00) - Bright outlook beyond tough Q4e
In our view, the Q4 report should be a non-event as the quarter was heavily disrupted by strikes at Candelaria and a power outage at Chapada; thus, 2020 ended on a tough Q4. However, as it is highly geared to copper/ gold, offering solid volume growth and a strong balance sheet with potential for increasing shareholder returns, we believe the stock is attractive at a 2021e EV/EBITDA of 4.6x, a 15% discount versus peers. We reiterate our BUY and have raised our target price to SEK88 (75).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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