JPMorgan downgrades Lundin Mining stock to Neutral on valuation concerns

Published 10/07/2025, 09:34
JPMorgan downgrades Lundin Mining stock to Neutral on valuation concerns

Investing.com - JPMorgan downgraded Lundin Mining (OTC:LUNMF) Corp (LUMI:SS) from Overweight to Neutral on Thursday, while lowering its price target to SEK105.00 from SEK118.00.

The investment bank forecasts Q2 2025 EBITDA of $336 million for the mining company, which is 2% below Bloomberg consensus estimates. JPMorgan also projects net debt of approximately $0.3 billion, 30% below consensus following the sale of European assets to Boliden (ST:BOL).

The firm expects fewer potential flashpoints for Lundin’s Q2 2025 earnings, as the company already updated its near and medium-term guidance during its June 2025 Capital Markets Day. JPMorgan forecasts Q2 2025 copper output of 78,000 tonnes, flat quarter-over-quarter, with overall group copper output likely to be weighted toward the second half of 2025.

Key focus areas for upcoming results include the company’s 2025 copper guidance of 303,000-330,000 tonnes, the Vicuna district development plans with an integrated technical report expected in Q1 2026, and potential share buyback activity.

As of June 30, Lundin Mining has bought back approximately $104 million or 12.6 million shares, representing about two-thirds of its new shareholder distribution policy that allocates around $150 million annually toward share buybacks.

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