Australia's 29Metals falls, Citi slashes PT amid production halt at WA mine

29Metals

09/03/2023 04:01

(Updates with Citi comments)
    ** Shares of copper miner 29Metals Ltd  29M.AX  fall as much
as 16.7% to A$1.285, their lowest level since July 19, 2022
    ** Stock set for worst day since Dec. 22, if losses continue
    ** Co says all production and non-essential activity has
been suspended at Capricorn Copper mine in Western Australia
    ** Miner says production suspended following heavy rainfall
on the evening of March 7, which is expected to result in an
extended loss of access to the site by road
    ** Analysts at Citi cut price target to A$1.50 per share
from A$2.00 per share as they find it tough to see how the stock
would rebound
        ** Citi expects A$100 million($65.90 million) cash burn
for the company in FY23 as compared to consensus estimate of
A$80 mln
  
    ** Co says suspension may continue for a period of three to
four weeks and will impact production results for the current
quarter 
    ** Stock is down ~19% this year as of last close
 


($1 = 1.5175 Australian dollars)

 (Reporting by Ayushman Ojha and Rishav Chatterjee in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))