Latin America | Diario

Research evidence excerpt

Latin America | Diario

d. While this is welcome news, it does not entirely remove Source: FactSet, Jefferies

market concerns that the build-up in diesel subsidy receivables (we estimate cUS$0.9bn) could

weigh on PBR's 2Q26 FCF and dividends.

Ecopetrol (UNPF) | Further noise around Brava deal. Brazilian E&P Brava (NC) announced it has

received a request for arbitration from partner Westlawn claiming, among other matters, that the

proposed transaction with Ecopetrol 'could trigger Westlawn's right of first refusal to acquire the

Company's interest in the Atlanta Field at market value'. While Brava indicated they 'believe that the

claims presented by Westlawn have no legal basis', we see this adding unwelcome noise into the

process.

Cosan (Hold) | Agricultural assets monetisation – more deleveraging to come? Cosan announced

the sale of 12% of the agricultural land portfolio (c41k hectares in the Mato Grosso state) of its Radar

subsidiary for BRL1.85bn (BRL0.6bn net to Cosan’s interest). This should help Cosan continue to

delever and we would not be surprised to see management pushing for further divestments over

the coming months.

Lundin Mining (Buy) | CMD Highlights Organic Growth Strategy. The key message from Lundin's

CMD was a multi-phase copper growth strategy combining near-term delivery from brownfield

projects with longer-term transformational growth in Argentina/Chile (Vicuña JV). The company's Pedro Baptista * | Equity Analyst

+44 (0) 207 029 8351 | pbaptista@jefferies.com

brownfield projects provide lower-risk, capital-efficient production growth and a medium-term uplift

in FCF. Lundin believes it can use this FCF to help self-fund its share of the transformational, large- Inigo Vega * | Equity Analyst

+34 910769995 | ivega@jefferies.com

scale Vicuña projects.