Citi maintains 'neutral' on 29Metals on bearish near-term base metals call

29Metals

20/10/2022 01:34

** Citi says copper miner 29Metals Ltd's  29M.AX  fiscal
year 2022 Q3 operational expenditure is down and production is
higher but co's margins are squeezed from high input costs
    ** Brokerage maintains "neutral" rating and keeps TP of
A$2.50 unchanged 
    ** 29M on Wednesday posted Q3 copper production of 12.3 kilo
tonnes vs 12.1 kilo tonnes in previous quarter  urn:newsml:reuters.com:*:nASX9gpN3K
    ** Citi says co's 19.8 kilo tonnes production in copper
equivalent terms (Cu-eq) in Q3 is in line with its estimate of
20.2 kilo tonnes
    ** Brokerage says on an annualised basis, 29M is tracking
within guidance on C1 costs and for all metals except zinc
    ** Citi says co's FY22 zinc production forecast of 55-65
kilo tonnes is at risk as brokerage sees lower production at
53.5 kilo tonnes 
    ** Citi maintains rating on its bearish near-term base
metals call
    ** Three of ten analysts rate the stock "buy", four "hold"
and three "sell" or lower; their median PT is A$2.20 – Refinitiv
data
    ** Stock is down 28% this year, as of last close
 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))