Lundin Mining Corporation Stock Analysis:
STA Research maintains Lundin Mining Corp. with a Buy rating and a target price of $8 on the company’s stock.
Based on the Lundin Mining Corporation stock forecasts from 18 analysts, the average analyst target price for Lundin Mining Corporation is CAD 11.08 over the next 12 months. Lundin Mining Corporation’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Lundin Mining Corporation is Slightly Bullish , which is based on 9 positive signals and 4 negative signals. At the last closing, Lundin Mining Corporation’s stock price was CAD 6.60. Lundin Mining Corporation’s stock price has changed by -0.75% over the past week, -6.38% over the past month and -38.78% over the last year.
Lundin Mining Corporation’s stock forecasts from 32 Crowd Analysts, has the average analyst target price for Lundin Mining Corporation at CAD 10.41 over the next 12 months. Lundin Mining Corporation’s average Crowd Rating is Buy.
About Lundin Mining Corporation (LUN:CA:TSX)
Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Brazil, Chile, Portugal, Sweden, and the United States. It primarily produces copper, zinc, nickel, and gold, as well as lead, silver, and other metals. The company holds 100% interests in the Chapada mine located in Brazil; the Neves-Corvo mine located in Portugal; the Eagle mine located in the United States; and the Zinkgruvan mine located in Sweden. It also holds 80% interests in the Candelaria and Ojos del Salado mining complex located in Chile. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Toronto, Canada.
National Bank Financial just lowered their 2022 earnings per share estimates for the company last week. The analyst S. Nagle projects earnings per share of $0.73 for the year, which were reduced from $0.82 earnings per share. The company’s consensus estimate for the year’s earnings is $5.11 per share.
Chile’s government has just filed four charges against Lundin Mining Corp. as a result of a 36.5-metre-wide sinkhole that was spotted near the company’s copper mine this past July. Lundin mining was charged with excessive mining and building a structure without a permit, and as a result the company faces fines in the amount of US$13 million. At the end of July, Lundin mining suspended its underground operations at the Alcaparrosa mine as a result of the issues present there, which were caused by underground water pools.
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.
Superior total returns
The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.
Superior return on equity
The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior return on assets
The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.
The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
What we don’t like:
Poor risk adjusted returns
This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.
Below median dividend returns
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
Overpriced on cashflow basis
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.