Barrenjoey cuts PT for 29Metals, as challenges pile up for Capricorn mine

29Metals

09/03/2023 22:04

** 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 
    ** Company said that all production and non-essential
activity were suspended at Capricorn Copper mine in Western
Australia following heavy rainfall on March 7 
    ** Brokerage cuts 2023 production outlook at Capricorn by
13% to 17 kilo tonnes; cuts EBITDA forecast for the year to A$17
mln ($11.20 mln) from A$28 mln
    ** Barrenjoey says better financial performance of 29Metals
hinges on the promise of higher grades in 2024 and beyond, which
is expected to be based on reserve grades
    ** Cuts PT on stock to A$1.10 from A$1.15; retains
"underweight" rating 
    ** Two of eleven analysts rate the stock "buy" or higher,
three "hold" and six "sell" or lower; their median PT is A$1.55
– Refinitiv data
    ** As of last close, stock was down 23% this year


($1 = 1.5179 Australian dollars)

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