Street View: Brokerages cut 29Metals PT on weak production forecast

29Metals

24/05/2023 04:11

** 29Metals  29M.AX  on Tuesday provided 2023 production
outlook for ore mined at its Capricorn copper mine, which was
under recovery; sees it between 514 kilo tonnes and 584 kilo
tonnes
    ** Shares of copper focused miner hit a record low falling 
as much as 17.2% to A$0.845 
    ** 29M posts sharpest intraday pct drop since December 2022
    
    'LONG ROAD TO RECOVERY'
    
    ** Macquaire ("Neutral", cuts PT by 17% to A$1.00) says the
ramp up to full production at the mine is expected to take a
longer time than anticipated; lowers equity raise assumption for
A$50 mln ($33.92 mln) at A$0.90 per share to A$0.80 per share in
4QCY23
    ** Citi ("Netral/High Risk", cuts PT to A$1.10 from A$1.20)
says medium-term outlook for Golden Grove is 10-15% below
consensus expectations at the mid-point for copper, and zinc
in-line; updates its outlook for Golden Grove at the lower range
of mid-point to align with miner's outlook
    ** Jefferies ("Hold", lowers PT to A$1.10 from A$1.30)
remain cautious on 29M given the near-term risks of operational
delivery, capital requirements and balance sheet tightness; says
Capricorn Copper's recovery plan failed to effectively show a
pathway that does not require additional funding while
maintaining timelines
    
        
($1 = 1.4743 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))