May 20, 2019 / 1:28 PM / 6 months ago

BUZZ-Lundin Mining: Chapada deal, FCF inflection on track - MS

** Morgan Stanley expects Canadian miner Lundin Mining’s Chapada acquisition to add to free cash flow in 2019 and 2020

** MS forecasts a substantial fall in co’s capex, starting 2020, despite Chapada deal

** MS says co’s strong balance sheet is supported by an inflection in the company’s FCF profile, as capex set to fall while volumes increase, with growth projects progressively ramping up

** Lundin Mining’s planned acquisition of the Chapada offers optionality to increase production above and beyond the existing mine plan - MS

** “Given an anticipated cash build next year, we take comfort in the company’s acquisition track record” - MS

** MS stays ‘overweight’ on stock, cites attractive valuation, strong FCF inflection,

** In a bull case, the mine could create shareholder value of C$0.33/share - MS estimates

** Stock up 11.5% YTD (Reporting By Arundhati Sarkar in Bengaluru)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below