(Reuters) - Shares of Lundin Mining Corp (LUN.TO) fell as much as 5 percent after the Canadian base metals miner cut its 2013 copper and zinc production forecast and raised cash costs estimates.
Lundin, which has operations in Portugal, Sweden, Spain and Ireland, said on Thursday that it expects to produce between 104,000 and 110,500 metric tons of copper next year, which is at the lower end of its forecast of 107,000 to 117,000 metric tons.
“With the Neves-Corvo materials handling study on suspension and Aguablanca pit wall instability, it may take additional time for the company to flesh out a growth scenario,” Scotiabank analyst Tom Meyer said in a note to clients.
The company said it was evaluating the life of its Aguablanca mine in Spain and did not give any production outlook for the mine beyond 2014.
Lundin said it will suspend any new major infrastructure studies at the Neves-Corvo zinc-copper mine in Portugal due to weak prices.
Meyer cut his price target on the stock to C$6.25 from C$7.
UBS also cut its price target on the Lundin stock to C$5 from C$5.15.
Shares of the Toronto-based company were trading at C$5 on Friday on the Toronto Stock Exchange, after touching a low of C$ 4.99.
Reporting by Krithika Krishnamurthy in Bangalore; Editing by Joyjeet Das