Bullboard - Stock Discussion Forum Lundin Mining Corp LUNMF

Primary Symbol: T.LUN

Metals & Mining Copper

Lundin Mining Corp. is a Canada-based diversified base metals mining company. The Company is engaged in metals mining with projects and operations in Argentina, Brazil, Chile, Portugal, Sweden and the United States primarily producing copper, zinc, gold and nickel. The Company’s operations include Candelaria, Caserones, Chapada, Eagle, Neves-Corvo, Josemaria and Zinkgruvan. Candelaria comprises... see more

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TSX:LUN - Post Discussion

Lundin Mining Corp > RBC

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Post by retiredcf on Feb 18, 2022 8:17am

RBC

February 17, 2022

Sector Perform

TSX: LUN; CAD 12.37

Price Target CAD 14.00

Lundin Mining Corporation

Stronger than expected Q4 on slightly higher sales and pricing

Our view: We expect a positive reaction from Lundin shares to Q4 results that came in above our estimates on slightly higher copper sales, lower cash costs, and a better than expected provisional pricing adjustment. Lundin previously released its updated three-year guidance and Q4 production. The focus in our view remains on closing the transaction with Josemaria, expected in Q2/22, and the de-bottlenecking at Candelaria. Lundin declared a dividend of $0.20/sh payable on April 13, 2022. The dividend includes a semi-annual performance dividend of $0.11/sh.

Q4 financial results above expectations: Lundin reported adjusted EPS of $0.38, above our estimate of $0.36 and consensus of $0.35. Adjusted EBITDA was $623M, above our estimate of $567M and consensus of $565M. The stronger than expected result was driven by higher copper and zinc sales, lower cash costs, and a higher than expected provisional pricing adjustment. Lundin generated $230M of FCF in the quarter (inclusive of a negative -$97M of working capital changes), above our estimate of $162M.

Other corporate updates: Lundin reiterated 2022 operating and capital spending guidance, but noted that they approved $25M for an Enterprise Resource Planning system upgrade. Additionally, the company announced the retirement of Board Chairman, Mr. Lukas Lundin, effective at the time of the 2022 AGM.

Copper and zinc sales above our estimates, gold below: Lundin pre- released Q4/21 production results. Copper sales of 71kt were slightly above our estimate of 70kt. Zinc sales also came in higher than our estimates, but this was offset by lower gold sales. C1 cash costs came in ahead of our estimates, while annual c1 cash costs were also better than guidance.

Liquidity update: As of February 16, Lundin had $650M in cash (up from $445M at October 27th) and a net cash position of $620M, up from $405M on October 27.

Lundin will host a conference call to discuss Q4/21 results on February 18th at 8:00am ET. Dial in: 1-877-223-4471

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