Wires

BUZZ-Lundin Mining's guidance a slight negative, leaves room for improvement - BMO

- BMO@

** Brokerage BMO cuts PT of diversified Canadian miner to C$8 from C$8.25 to reflect higher costs and lower production guidance compared with its own estimates

** BMO says company's 2020 production guidance reflects delay at its Neves-Corvo Zinc Expansion Project (ZEP) in Portugal

** Brokerage expects improvement in 2021, with ZEP expected to be in full production and improvements forecast at company's Candelaria copper mine in Chile

** LUN on Tuesday said it expects copper production to increase over 20%, zinc over 15% and nickel more than 25% in 2020, compared with 2019

** Expects to raise quarterly dividend by 33% to 4 Canadian cents /shr; says dividend increase likely to be declared along with 2019 results in February

** Company intends to renew its normal-course issuer bid to purchase up to 63.8 mln common shares on the Toronto Stock Exchange

** However, brokerage National Bank of Canada raises PT of co to C$8.75 from C$8.50, maintains "outperform" rating

** Brokerage says its "outperform" rating is based on company's ongoing brownfield expansion initiatives and integration of Chapada copper mine, which is expected to lead to copper equivalent production growth of 9% annually through to 2022

** Through Tuesday's close, stock up 7/830% YTD (Reporting by Shradha Singh in Bengaluru)