Lundin Mining Q4 Profit Nearly Doubles

Lundin Mining (TSE: LUN) reported higher revenues and profits in the fourth quarter, thanks to a favorable base metal price environment.

Revenue & Earnings

Revenue came in at $1.02 billion in Q4 2021, up 92.4% from $529.5 million in Q4 2020.

Earnings attributable to shareholders were $228.8 million ($0.31 per share) in the fourth quarter, up from $119.2 million ($0.16 per share) in the prior-year quarter.

Adjusted earnings were $281.5 million ($0.38 per share) for Q4 2021, up from $106.7 million ($0.15 per share) in Q4 2020.

Production of all metals met or exceeded Lundin’s most recent annual production forecast.

CEO Commentary

Lundin Mining president and CEO Peter Rockandel said: “We were able to take advantage of the favorable base metal price environment and set many Lundin Mining all-time financial records in 2021 including generating net earnings of nearly $880 million, adjusted EBITDA of $1.9 billion, free cash flow of over $1 billion, and dividends paid of over $225 million. Our operations finished the year strong with excellent fourth-quarter performance, including significant improvement at Candelaria. The Zinc Expansion Project at Neves-Corvo was substantially complete at year-end and commissioning is now underway. Expansion study work evaluating future growth and mine life extensions were advanced for the Candelaria underground mines, Keel zone of Eagle East and at Chapada.”

Wall Street’s Take

On February 14, Stifel Canada analyst Ian Parkinson kept a Hold rating on LUN and C$13.25 price target. This implies 11.2% upside potential.

Overall, LUN scores a Hold consensus rating based on four Buys and 12 Holds. The average Lundin Mining price target of C$12.33 implies 3.4% upside potential to current levels.

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