29Metals extends losses after brokerages cut PT amid production cramp at WA mine

29Metals

10/03/2023 02:13

(Updates with Jefferies comments and share moves)
    ** Brokerage Barrenjoey says while the wet weather impact on
Australian miner 29Metals Ltd's  29M.AX  Capricorn Copper mine
is adverse news, the site was already operating below capacity
because of tailings dam constraints 
    ** Shares are currently extending losses, down as much as
3.7% to A$1.415
        ** Company 
    said
     that all production and non-essential activity were
suspended at Capricorn Copper mine in Western Australia
following heavy rainfall on March 7 
  
        ** Cuts PT on stock to A$1.10 from A$1.15; retains
"underweight" rating along with a slash of 2023 production
outlook at Capricorn by 13% to 17 kilo tonnes
  
        ** Brokerage trims EBITDA forecast for year to A$17 mln
($11.20 mln) from A$28 mln
  
        ** Analysts at another brokerage Jefferies cut PT on co
to A$1.75 from A$2.00 and assumes limited processing activity
through 3Q due to higher water held on site
  
        ** Jefferies adds that it sees potential for ongoing
mill restrictions to end by 2023 which would impact production
expectations
  
    
    


($1 = 1.5179 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))