Positive Outlook and Growth Prospects Drive Buy Rating for Lundin Mining

Analyst Matt Murphy of BMO Capital maintained a Buy rating on Lundin Mining (LUNMF – Research Report), retaining the price target of C$16.00.

Matt Murphy’s rating is based on several positive outlooks for Lundin Mining. The company is expected to generate substantial free cash flow over the next five years, with stable production levels and opportunities for organic growth in copper production. Lundin Mining is also making strides in operational improvements, which are anticipated to continue in the medium term.
Furthermore, there are significant upside potentials at various projects. The Candelaria underground project could extend mine life and improve throughput with higher-grade ore, while the Chapada mine plan is set to benefit from the integration of Sauva, potentially boosting copper and gold production. Additionally, the Caserones project could increase output by utilizing spare leach capacity, and the Vicuna project in Argentina offers promising copper growth prospects. These factors collectively support the Buy rating for Lundin Mining.

In another report released on June 16, Scotiabank also maintained a Buy rating on the stock with a C$16.00 price target.

LUNMF’s price has also changed moderately for the past six months – from $8.250 to $10.280, which is a 24.61% increase.