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On Friday, BMO Capital reinstated its coverage on Lundin Mining (OTC:LUNMF) Corp. (LUN:CN) (NYSE:LMC), assigning an Outperform rating and setting a price target of Cdn$16.00. The firm’s analysts highlighted the company’s focus on its South American copper operations as a key factor in their decision.
The analysts noted that Lundin Mining has streamlined its operations to concentrate on three major copper mines in South America, which offer significant exploration potential. They emphasized the importance of the Vicuna joint venture with BHP, describing it as a top-tier project with a high internal rate of return.
BMO Capital’s analysts have developed a conceptual mine plan for Lundin Mining, which they believe will yield strong returns due to phased capital expenditures and low by-product cash costs. The firm views current market concerns over capital expenditures as premature, suggesting they present a buying opportunity.
Lundin Mining’s strong cash generation from its existing assets is expected to support its growth strategy, according to the analysts. They believe the company is on track to develop an industry-leading copper asset through its ongoing projects.
The analysts’ report reflects confidence in Lundin Mining’s ability to capitalize on its strategic focus and operational strengths, reaffirming their positive outlook for the company’s future performance.
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