Thursday, August 13, 2015

Mines: Boliden stronger than Lumi come – SHB Trading Case – Dagens Industri

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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