UBS Raises Lundin Mining Corp. TargetUBS analyst Brian MacArthur raised his price target on Lundin Mining Corp. (LMC) from $15 to $16 after the metal miner announced it has entered into a takeover agreement with Rio Narcea Gold Mines Ltd. (RNO). His 'buy' rating remains unchanged.
"We believe this transaction is positive for [Lundin] as it diversifies their product mix in a politically low-risk region and synergies may be obtained," Mr. MacArthur said in a note to clients, adding the proposed transaction appears to be accretive given his commodity price assumptions.
Under terms of the agreement, Lundin will offer C$5 per share in cash for all outstanding shares of Rio Narcea and C$1.04 in cash for each outstanding warrant.
Mr. MacArthur also noted that Red Back Mining has contingent to Lundin's bid for Rio Narcea, agreed to buy Lundin's Tasiast gold mine for US$225 million in cash and US$42.5 million in debt related to the mine.
https://seekingalpha.com/article/31714-ubs-raises-lundin-mining-corp-target-after-rio-narcea-buyout