Mines: Boliden stronger than Lumi come – SHB Trading Case
2015-08-13 11:23
(SIX) Handelsbanken sees many similarities between the mining company Boliden and Lundin Mining. From a valuation perspective, shares price potential mean that the Bank is that there is a marked difference. The Bank believes that Boliden has better conditions and thus will be stronger than Lundin Mining to come. It appears from a so-called Trading Case written on Thursday. SHB describes Boliden as an "almost unique company in the international mining industry "when it possesses strong enough Finance for investment for growth and big dividends during the coming years. "Boliden is a well-invested companies with volume growth. Despite Metal prices are under pressure exhibits Boliden solid results due by impressive cost control. At the same time reducing debt, " writes Handelsbanken in its Trading Case. It also highlights that Boliden has a strong currency tailwind, then the mining company's costs are primarily in Euros and Swedish Kronor while costs are in dollars. As for Lundin Mining does not look SHB something that could directly trigger course, also expected the company's earnings momentum weak. "As a result of lower volumes and metal prices, we expect to operating income before depreciation and amortization (EBITDA) falling to close 40 percent in the second half of 2015 compared with the first and the continued decline in earnings in 2016 will result in a negative operating income. This despite the fact that we are expecting slightly higher metal prices than the current level, "writes the bank. In the scenario where risk appetite rises broad and metal prices exhibit significant increases would Lundin Mining to develop better than the Boliden and with greater financial leverage. One Such a scenario is unlikely, however, clear from the Trade Bank Trading Case. Louise Thorslund mailto: louise.thorslund@six-group.se www.blogg.six.seSIXNews SIX News
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