Inflation eases but miners' earnings still at risk - RBC

Boliden AB

18/04/2023 09:13

** RBC sees challenges to consensus earnings of European
miners and to the industry's capex as energy costs move higher
again, although inflation might have reached its peak 
    ** It says recovery in the sector, based on expectations of
China reopening, has been underwhelming, while slowing economic
data calls for muted near-term outlook
    ** The European basic resources index  .SXPP  is down 3.7%
YTD, against STOXX 600  .STOXX  rising more than 10%
    ** Globally, the mining industry faces risks from
potentially slower growth hitting demand, RBC says
    ** That said, the sector in Europe remains financially
robust and the brokerage sticks to its recommendations on top
players
    ** It raises TPs for Sweden's Boliden  BOL.ST , Anglo
American  AAL.L , Antofagasta  ANTO.L  and Rio Tinto  RIO.L ,
rating them all at "sector-peform"

 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@tr.com))