Citi sees operational recovery for European metals & mining in Q3

Metlen Energy & Metals SA

09/10/2024 14:45

** Citi expects Q3 production results from European
metals & mining companies to reflect the start of an
operational recovery after a weak first half of the year
    ** It sees small recovery in iron ore and copper
production and flattish coal production, while diamonds
and platinum group metals could remain weak
    ** It expects large cap miners such as Rio Tinto
 RIO.L , Glencore  GLEN.L , Antofagasta  ANTO.L  and
Anglo American  AAL.L  to deliver operational recovery
    ** Norsk Hydro  NHY.OL  benefits from alumina spot
price rally, while Boliden's  BOL.ST  Q3 is impacted by
lower prices, higher capex and non-recurrence of an
insurance claim, Citi says
    ** It sees scope for better earnings for Metlen
Energy & Metals  MYTr.AT  helped by recovery in Greek
spark spreads, positive seasonality for power demand, and
improved outlook for execution of renewable rotation
assets
    ** It expects Kazatomprom  KZAP.KZ  to report
continued improvement in uranium production

CITI'S RECOMMENDATIONS:
 COMPANY                  RATING   PT
 Anglo American           buy      GBP 28 (from GBP 30)
 BHP Group  BHP.AX        buy      GBP 24
 Boliden                  neutral  SEK 350 (from SEK 340)
 Fresnillo  FRES.L        buy      GBP 8.50
 Glencore                 buy      GBP 5.30
 Kazatomprom              buy      $53
 Metlen Energy & Metals   buy      EUR 46
                                   
 Norsk Hydro              neutral  NOK 70 (from NOK 65)
 Rio Tinto                neutral  GBP 53
 South32  S32.AX          buy      GBP 2
 
 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))