On Wednesday, Lundin Mining (TSE:LUN) (OTC:LUMNF) reported its Q4-2022 and full-year results. Both revenue and earnings per share (EPS) came ahead of expectations. Please note that all figures are in U.S. dollars unless otherwise stated.
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- For the quarter, revenue reached $811.4 million compared to $1.02 billion in the same quarter last year. Nonetheless, this beat the $724.9 million consensus estimate by a wide margin.
- Adjusted earnings per share came in at $0.25, lower than last year’s figure of $0.38 but much higher than the $0.10 consensus.
Further, Lundin’s adjusted operating cash flow was $289.1 million, falling quite significantly from Q4-2021’s figure of $481.5 million. Additionally, adjusted EBITDA fell by 43.2% to $353.7 million.
For the full year, Lundin generated $3.04 billion in revenue (an 8.7% year-over-year decrease), $992.9 million in adjusted operating cash flows (a 33.2% decrease), and adjusted EBITDA of $1.29 billion (a 30.9% decrease).
Despite the year-over-year drops, the company succeeded in achieving its production guidance for copper, nickel, and gold. However, zinc production didn’t meet expectations.
Positively, however, Lundin Mining’s CEO stated that the company’s “long-life cost-competitive mines and strong financial position, provide a solid base for us to create value and material growth beyond the ~400,000 tonnes of copper-equivalent production we delivered in 2022.”
Lastly, Lundin Mining returned more than $330 million to shareholders through dividends and repurchases, representing 6.9% of its current market cap.
Is Lundin Mining Stock a Buy, According to Analysts?
According to analysts, Lundin Mining stock earns a Hold consensus rating based on one Buy, nine Holds, and one Sell assigned in the past three months. The average LUN stock price forecast of C$9.21 implies 9.6% upside potential. Analyst price targets range from a high of C$12.80 to a low of C$7.45.
