Citi downgrades Australia's 29Metals to 'sell' post discounted offering

29Metals

05/12/2024 22:57

** Citi downgrades copper miner 29Metals  29M.AX  to "sell"
from "neutral" following a placement representing a 27% discount
to Tuesday's closing share price.
    ** The brokerage cut PT to A$0.25 from A$0.45 after updating
estimates for extended Xantho downgrade and adding 667 million
shares post its A$180 million ($116.12 million) offering
    ** Citi also cites capital allocation to Gossan Valley to
elevate funding issues
    ** Flags liquidity concerns related to funding restart at
Capricorn Copper
    ** Stock price at A$0.26 as of last close
    ** 5 of 7 analysts rate the stock "hold", and 2 "sell";
their median PT is A$0.31 
    ** Stock has fallen 60.5% YTD, as of last close


($1 = 1.5501 Australian dollars)

 (Reporting by Nichiket Sunil in Bengaluru)
 ((Nichiket.Sunil@thomsonreuters.com))