Lundin is assessing the damage and said early indications are that the motors will need extensive repair work. The operation has two spare motors: one is onsite, and the other is offsite undergoing rehabilitation work and could be available in eight to ten days. The company said it expects to resolve the issue within the fourth quarter.
Raymond James lowered its share price target for Lundin from C$9 per share to C$8.50
The company is assessing the potential for a staged resumption of operations using these two motors to run the SAG mill and bypass the ball mill, allowing the plant to run at about 30% of nameplate capacity, albeit at likely reduced recoveries. (Nameplate capacity for the processing facility is 65,000 tonnes per day.)
While Lundin has withdrawn its full-year guidance, it expects the mine will produce between 51,000 and 56,000 tonnes of copper and 70,000 to 75,000 oz. gold in 2021.
Following the news, Raymond James lowered its share price target for Lundin from C$9 per share to C$8.50, but maintained its market perform rating for the company.
The brokerage firm also revised its 2020 production estimate to 43,000 tonnes of copper and 70,000 oz. of gold, down from its previous estimate of 53,000 tonnes of copper and 86,000 oz. gold.
At press time in Toronto, Lundin was trading at C$7.07 per share within a 52-week trading range of C$6.94 and C$7.31.
The company has roughly 734 million common shares outstanding for a C$5.2 billion market capitalization.
(This article first appeared in the The Northern Miner)
