Why This Lundin Mining Analyst Is Turning Bullish

Lundin Mining Corp LUNMF shares were climbing in early trading on Wednesday.

The company is a defensive name with strong cash flows in the near term, while being leveraged to copper prices in the longer term, according to BMO Capital Markets.

The Lundin Mining Analyst: Jackie Przybylowski upgraded the rating for Lundin Mining from Market Perform to Outperform, while raising the price target from $12 Canadian dollars ($8.83) to CA$16 ($11.78).

The Lundin Mining Thesis: The company now has “plenty of cash after the sale of its Tenke stake, stable operations, and the generous NCIB in place,” Przybylowski said in the upgrade note.

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With operating challenges in the rearview mirror, Lundin Mining’s assets are poised for steady production, which should generate strong cash flows in 2024, the analyst stated.

“Acquisitions of Josemaria and Caserones between 2021 and 2023 provide the company with growth optionality,” Przybylowski wrote, adding that Lundin Mining enjoyed “a long-term leverage to copper prices through the future development of some of the industry’s best potential major growth projects of the next generation.”

LUNMF Price Action: Shares of Lundin Mining had risen by 1.86% to $9.85 at the time of publication on Wednesday.

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