JEFFERIES CUTS ANTOFAGASTA PRICE TARGET TO 1,700 (1,900) PENCE - 'BUY' |
 Antofagasta hit by climate issues beyond its control
A poor production report from Antofagasta (ANTO) was blamed on extreme weather in Chile and AJ Bell says the miner is still doing a decent job in areas that it can control.
Drought conditions in Chile mean the miner has struggled to get copper out of the ground and changes to Chilean mining royalties have also been weighing on the group, which could in future receive a smaller share of production revenues.
Analyst Danni Hewson said: ‘In the wake of Covid-19 and amid elevated commodity prices, countries may well be tempted to increase their take as they look to rebuild broken public finances and the mining sector may have to prepare itself for a wave of resource nationalism.’
However, she noted that Antofagasta was ‘doing a decent job’ in areas that it has control over, such as ‘cost and growth from new projects and initiatives at existing mines’.
‘Longer term, the prospects for the copper market are underpinned by the metal’s importance in electric vehicles and renewables infrastructure. Both areas are likely to see significant investment as the world looks to address climate change by reducing carbon emissions,’ she said.
hxxps://citywire.co.uk/investment-trust-insider/news/expert-view-iag-experian-yougov-antofagasta-and-dunelm/a1571204?section=investment-trust-insider&_ga=2.66384937.661703354.1634842239-1754802863.1634842239#i=6 |
Copper producer Antofagasta (ANTO) delivered a positive third quarter trading update, noting that while output and net cash costs were in line with estimates and with last year, full year costs were likely to be lower than expected.
However, shares were the worst performers on the FTSE, falling almost 4% to £14.18 on a lower production forecast for 2022 due to lack of rain at the firm’s Chilean operations.
sharesmagazine.co.uk/ |
ANTO. ...Tipped by Questor in The Telegraph friday.
...It seems sensible to steer clear of those most in danger from the move to decarbonise and favour those that are part of the solution to climate change.
Copper is one obvious candidate. JP Morgan Asset Management said in June: “Renewable energy systems can consume five times more copper than conventional energy systems, and the average battery electric vehicle consumes around 60kg more copper than a similarly sized internal combustion vehicle.” |
Think Barclay's are clutching at straws, (or looking to buy) :-) |
BARCLAYS CUTS ANTOFAGASTA PRICE TARGET TO 1,100 (1,200) PENCE - 'UNDERWEIGHT' |
GOLDMAN SACHS RAISES ANTOFAGASTA PRICE TARGET TO 1,750 (1,700) PENCE - 'NEUTRAL' |
That was quite a price spike up to 1475. |
Exactly , they all seem to talk their own book ;-) |
JEFFERIES CUTS ANTOFAGASTA PRICE TARGET TO 1,900 (2,000) PENCE - 'BUY' |
DEUTSCHE BANK CUTS ANTOFAGASTA PRICE TARGET TO 1,310 (1,320) PENCE - 'HOLD' |
RBC CUTS ANTOFAGASTA PRICE TARGET TO 1,000 (1,050) PENCE - 'UNDERPERFORM' |
DEUTSCHE BANK CUTS ANTOFAGASTA PRICE TARGET TO 1,320 (1,350) PENCE - 'HOLD' |
Copper miner Antofagasta posts bumper profits
The company is building a desalination plant at Los Pelambres, which will become operational next year, to help with the water shortages.
“Once it’s built . . . we have got the water requirements addressed from the potential shortages we might have,” ....Iván Arriagada, Antofagasta’s chief executive |
Investors Chronicle:
Antofagasta profits soar but production falters
Copper miner to hand out hefty interim payout but flags water shortage as a risk to production
August 19, 2021
A looming fall in the copper price is not ideal for Antofagasta but it is in net cash and looks to soon have a fix to its water issues.
Buy. |
There was some support for Antofagasta from Peel Hunt analysts, however, after they stuck by their target price of 1,545p, compared with 1,403p after today's 67p fall.
The 280.6% hike in dividend to 23.6 cents a share, amounting to $233 million and in line with a commitment to pay 35% of net earnings, was broadly in line with the broker's expectations. It will be paid to shareholders on October 1.
Peel Hunt said Antofagasta shares still offered appealing exposure to copper and that the pull back for shares due to slower growth rates in China's economy offered an opportunity.
The broker said: “We would use further pull backs to add to positions, as we continue to expect copper prices to rally over the next two years.”
Counterparts at Deutsche Bank are less optimistic and recently placed a “sell” recommendation on Antofagasta, naming Glencore as their preferred pick for copper exposure due to self-help measures, an undemanding valuation and strong cash flows.
ii.co.uk |
JPMORGAN CUTS ANTOFAGASTA PRICE TARGET TO 1,460 (1,490) PENCE - 'NEUTRAL' |
Antofagasta slumps 5% on production downgrades |
How long will it take Chinese to develope one of the biggest mine in Afghanistan?Not good for this share and Glenmore as Chinese are know for flooding the market as we seen in Steel industry. |
Questor: this copper miner offers growth potential as we move towards a low-carbon future
Questor share tip: Antofagasta’s solid financial position should allow it to capitalise on a long-term imbalance between demand and supply |
1210p looks next support, if this keeps on falling. |
Yes rather be in gold and silver miner. |
Copper continues to slide |
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