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TICKERS: LUN

Base Metals Miner Posts 'Strong Operating Performance' in Q3/19
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The short-term outlook for the Canadian company is provided in a CIBC report.

In an Oct. 25 research note, CIBC analyst Oscar Cabrera wrote that Lundin Mining Corp. (LUN:TSX) "continues to offer investors an attractive combination of a strong balance sheet, operating execution and financed brownfield growth."

This view comes after the metals producer posted "strong operating performance" in Q3/19, "supporting completion of expansion projects" and CIBC adjusted its model accordingly, Cabrera added.

Upcoming near- and medium-term catalysts for Lundin Mining are development progress at Candelaria and Neves Corvo and expansion progress at Chapada via exploration. Lundin has a site visit scheduled at Chapada on Nov. 8, Cabrera reported.

The analyst commented that how Lundin Mining next allocates capital, whether to continued growth or to shareholders, "will be important to rerate" the company's shares. Further, expansion potential at Chapada should improve Lundin's valuation that currently trails that of its peers.

CIBC has an Outperformer rating and a CA$8 per share target price on Lundin, whose stock is currently trading at around CA$7.33 per share.

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Disclosures from CIBC, Lundin Mining Corp., October 25, 2019

Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst's personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers.
Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

Important Disclosure Footnotes for Lundin Mining Corp. (LUN)

· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Lundin Mining Corp. in the next 3 months.





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