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Investing.com -- Lundin published its fourth-quarter adjusted EBITDA fell short of market expectations.
The EBITDA for the quarter was $426 million, which was 8% below the Visible Alpha consensus of $464 million. This discrepancy was primarily due to provisional pricing effects. Despite this, the adjusted earnings per share (EPS) of $0.15 were slightly above the consensus of $0.14.
The company’s regular quarterly dividend of C$0.09 per share was consistent with its stated policy, and shareholders were treated to a surprise C$40 million buyback. This buyback contributed to a total of $227 million in cash returns for 2024, which represents about 3% of the company’s current market capitalization.
Lundin has signaled its intention to proceed with the buyback program at the current share price levels.
Lundin also reported a stronger-than-expected balance sheet, with net debt, including lease liabilities, standing at $1.6 billion. This figure was 6% below the consensus.
The company’s balance sheet gearing was at 0.8x net debt/EBITDA at the end of December, excluding lease liabilities. Moreover, on a pro-forma basis post-divestments, the company was debt-free.
Morgan Stanley (NYSE:MS) commented on the stock’s performance, stating, "We expect the shares to trade broadly in line with the sector today."
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