Australia's 29Metals slips, Jefferies cuts PT on downbeat outlook

29Metals

01/05/2025 04:35

** Shares of 29Metals 29M.AX fall 4.2% to A$0.115, set for three sessions of consecutive losses

** Miner on Tuesday reported quarterly copper production of 5.8 kilo tons vs 6.4 kilo tons last quarter

** Jefferies says that production at the Xantho Extended project in Western Australia was lower than expected due to ventilation and seismic challenges

** Adds, operational fluctuations affected the consistency of free cash flow, which is crucial for the rest of the portfolio

** Cap Copper mine's suspension and restart costs, debt servicing, and Gossan Hill's capex raise concerns - Jefferies

** Cuts price target to A$0.12 from A$0.15; maintains 'Hold' rating

** Stock down 52% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))