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LUC - Lucara Diamond News Story

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Basic Materials
Small Cap
Market Cap £195.3m
Enterprise Value £212.3m
Revenue £102.2m
Position in Universe 517th / 2703

BUZZ-Berenberg expects recovery in metals and mining sector

Wed 8th July, 2020 10:04am
** Brokerage Berenberg says metals and mining sector is
recovering in the shadow of a second wave of novel coronavirus
cases, with precious metal miners having fared best, followed by
those with copper and iron ore exposure
    ** Recent data from both the U.S. and Europe has been
supportive of the tick-shaped recovery thesis, with a 17.7% rise
in U.S. retail sales for May - Berenberg 
    ** Brokerage expects a tick-shaped recovery, rather than a
V-shaped one with an initial sharp rebound  
    ** Berenberg believes that demand will be strong for metals
such as copper, nickel, platinum-group metals (PGMs), lithium
and cobalt as the world seeks to improve living standards
    ** However, brokerage says supply of PGMs has been affected
by the lockdown in South Africa and the outage at Anglo American
PLC's  AAL.L  converter plant in the region
    ** Says the key U.S. market is in a deep freeze and spot
prices of metals are down 20% QOQ despite major companies
restricting supply
    ** Brokerage revised price targets on metals and mining
stocks as follows:

 Company Name            New PT      Old PT
 ANGLO PACIFIC           180P        200P
 CAPITAL LIMITED         78P         77P
 CENTAMIN                190P        184P
 ENDEAVOUR MINING        C$40        C$36
 GEM DIAMONDS            26P         28P
 HOCHSCHILD MINING       200P        190P
 KENMARE RESOURCES       380P        400P
 LUCARA DIAMONDS         C$0.70      C$0.80
 PETRA DIAMONDS          2P          5P
 POLYMETAL               1840P       1680P
 RESOLUTE MINING         90P         88P
 THARISA                 200P        150P
 (Reporting by Tapanjana Rudra)
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