Citi bullish on precious metals, copper; hikes PT on BHP, Fortescue

Deterra Royalties

04/05/2023 21:58

** Analysts at Citigroup are bullish on precious metals, and
expect a bull market for gold and silver in 2023 as developed
market growth weakens while growth in emerging markets firms
    ** Analysts also "very bullish" on copper in mid-term as
decarbonisation underpins long-term demand growth
    ** Expects copper prices around $10,000 per tonne CY24
onwards, a hike of $1,000/t from prior view; cautious in the
near-term on copper on weak global demand and improving supply
    ** Also hikes its FY24 and FY25 forecast for iron ore by 5%
and 6%, respectively
    ** Iron ore hikes results in earnings view hikes for
Fortescue Metals Group  FMG.AX , Deterra Royalties  DRR.AX  and
Champion Iron  CIA.AX  
    ** Higher copper and precious metals' estimates result in
earnings view upgrade for 29Metals  29M.AX , Sandfire Resources
 SFR.AX , Evolution Mining  EVN.AX  and Newcrest Mining  NCM.AX 
    
    
      Company        Price Target (A$)   Rating
                       New       Old        
      Alumina          1.50     1.55      Sell
     BHP Group        45.50     43.00    Neutral
   Champion Iron       8.40     8.10       Buy
 Deterra Royalties     4.80     5.10     Neutral
  Evolution Mining     3.10     3.00      Sell
     Fortescue        18.20     18.00     Sell
   New Hope Corp       4.70     4.80     Neutral
  Newcrest Mining     31.22     29.12      Buy
     Rio Tinto        120.00   108.77    Neutral
 Sandfire Resources    6.40     6.30     Neutral
      South32          4.55     4.90       Buy
  Whitehaven Coal      8.70     8.80       Buy
 
 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))