Research
Lumina Metals Initiated at Outperform at RBC, CIBC
RBC Capital Markets initiated coverage of Lumina Metals Corp. (LMCU.TO) with an Outperform rating and $20 price target, and CIBC Capital Markets started the Vancouver-based copper and silver miner at Outperformer with a $18 target."Lumina recently completed its IPO and is advancing the large-scale high-grade copper-silver Nowa Sol project in Poland with unique scale and grades, located in an established mining country," RBC Analyst Sam Crittenden said in a note to clients."The project is longer dated and there is uncertainty about taxes; however, we see significant upside potential to both metals prices and potential tax reform," Crittenden said."Poland is one of the world's leading copper producers, but high taxes have stalled investment which could change through tax changes and the development of Nowa Sol," the analyst said."The company currently trades at a 0.43x P/NAV, a slight discount to the developer peer average of 0.50x on the CIBC price deck," CIBC analyst Anita Soni said in a note to clients."We believe the discount relates to the stage of development for its cornerstone asset, Nowa Sol, which carries execution risk, and the current tax regime in Poland," Soni said.
$LMCU.TO