UBS sees Aussie miners benefiting from China reopening, flags recession risks

Gold Road Resources

18/04/2023 24:00

** UBS sees the reopening of China to be a main tailwind for
the Australian mining and gold sectors, but it is wary of global
recession risks that could lead to weaker industrial activity  
    ** The broker raises its 2023-24 price forecast for copper
and iron ore prices to reflect a better-than-expected China
reopening and gold to reflect peaking U.S. real rates 
    ** Broker chooses gold stocks as one of the top picks as
they are well-placed to benefit from falling U.S. real rates;
adds it is bullish on the outlook for gold into 2023
    ** Broker adds that iron ore is also positioned for a
stronger-than-expected recovery since prices have been resilient
in 2023; expects to weaken in H2 of 2023 as spot prices are
likely to fall while production in China is set to moderate
    ** UBS maintains "Sell" on mining giants Rio Tinto  RIO.AX ,
Fortescue Metals  FMG.AX  and BHP Group  BHP.AX  due to its
cautious view on iron ore prices
    ** Broker retains "Buy" rated on Gold Road Resources
 GOR.AX  and ASX-listed shares of SSR Mining  SSR.AX , although
it downgrades Northern Star Resources  NST.AX  to "Sell"

 (Reporting by Archishma Iyer in Bengaluru; Editing by Jamie
Freed)
 ((Archishma.Iyer@thomsonreuters.com;))