Australia's 29Metals hits record low on weather interruptions at Queensland mine

29Metals

15/03/2023 02:22

(Updates price movement, adds comments from brokerages)
    ** Shares of 29Metals Ltd  29M.AX  fall as much as 16.7% to
hit a record low of A$1.15
    ** The miner provides an update on impact of extreme weather
events at co's Capricorn Copper mine in Queensland 
    ** Says due to impact of weather events, interruption to
operations at the mine is now expected to be more significant
than co's preliminary assessment on March 09
    ** Co expects the interruption to operations at the mine to
be for a period of three to four months and withdraws 2023
outlook for Capricorn copper mine 
    ** Canaccord Genuity, which lowers PT to A$1.30 from A$1.55,
says while it is likely the event is insurable, the loss of
production impacts the brokerage's EBITDA and cash balance
forecast for the company
        ** Citi has also trimmed its PT to A$1.40 on
expecatations of a fall in annual EBITDA guidance and a miss on
group copper outlook
  
    ** 29Metals shares set for worst day since Dec 22, if losses
hold 
    ** Shares down 27.2% YTD, as of last close 
   

 (Reporting by John Biju and Mehr Bedi in Bengaluru)
 ((John.Biju@thomsonreuters.com;))