Citi cuts 29Metals PT, says long path to regain market confidence

29Metals

30/08/2023 20:59

** Analysts at Citi cut price target of 29Metals Ltd
 29M.AX  by 10 Australian cents per share to 75 Australian cents
per share, maintains "neutral" rating
    ** Says co has a long path to regain market confidence
    ** "We think there's still a lot to work through here
including Golden Grove FCF, removal of processing constraints
(tailings) at Capricorn Copper set against a backdrop of weak
base metals pricing" - brokerage
    ** Co announces entitlement offer to raise A$151 mln ($97.88
million)
    ** 29M says company is fully funded and doesn’t depend on
other outcomes such as insurance going their way - brokerage
    ** Citi says it models a total of A$75 mln for insurance
proceeds
    ** Stock had fallen 60.73%% YTD, as of last close 
    
($1 = 1.5427 Australian dollars)

 (Reporting by Aishwarya Nair in Bengaluru)
 ((Aishwarya.Nair@thomsonreuters.com; +91-9167838937 Twitter: https://twitter.com/Aishwaryartrs
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