Citi sees risks for miners from U.S. tariffs

Metlen Energy & Metals SA

11/12/2024 10:48

** Citigroup expects growing volumes, improving free cash flow to boost the
European base metal stocks in 2025, while it warns of uncertainties over U.S.
tariffs and China recovery
    ** The tariffs and counteractions from China may cloud rising commodity
prices, it says
    ** The broker expects Antofagasta  ANTO.L  to increase its copper production
due to a mine expansion and expects mid-term growth based on projects under
execution
    ** It also expects Boliden  BOL.ST  to grow copper equivalent volumes due to
zinc smelter commissioning, a zinc mine restart, a potential $1.3 bln mines
acquisition
    ** Citi expects Fresnillo  FRES.L  to have positive FCF based on previous
earnings growth and positive silver and gold outlook
    ** Metlen  MYTr.AT  may deliver positive FCF, as Citi expects its capex
growth to continue, with cash conversion improved by solar project disposals and
reducing working capital
    ** The broker expects the current alumina price to help Norsk Hydro  NHY.OL 
 generate strong FCF in 2025 and potentially lead to share buybacks, although
the market may not value these extra earnings fully
    
    PT changes:
 COMPANY                      NEW PT      OLD PT
 AMG Critical Mat  AMG.AS     EUR 25.00   EUR 28.00
 Antofagasta  ANTO.L          GBP 22.00   GBP 23.00
 Befesa  BFSA.DE              EUR 24.00   EUR 27.50
 Boliden AB  BOL.ST           SEK 360.00  SEK 350.00
 Norsk Hydro  NHY.OL          NOK 76.00   NOK 70.00
 
 (Reporting by Vera Dvorakova)
 ((vera.dvorakova@thomsonreuters.com))