Metals & Mining: Jefferies sees growth in copper demand; upgrades Antofagasta, Glencore

Sierra Metals

24/11/2020 09:50

** Jefferies expects copper demand to significantly exceed
supply starting in 2021 and shortages could lead to
substantially higher prices
    ** The shift from coal and gas power to wind and solar power
is positive for copper - analyst Christopher LaFemina says; adds
that electric vehicles (EVs) to drive demand for copper as well
    ** Says the copper market is heading into a multi-year
period of deficits, in part due to secular demand growth in
renewable energy and EVs
    ** Jefferies raises its copper price forecasts and upgrades
miner Antofagasta PLC  ANTO.L  and commodity trader Glencore Plc
 GLEN.L  to "buy" from "hold" 
    ** Says Freeport-McMoran Inc  FCX.N , First Quantum Minerals
 FM.TO , Glencore, and Antofagasta are its preferred copper
miners
    ** Revises PTs for the following companies
 Company                         Current PT    Prior PT
 Antofagasta                     1400p         1100p
 Barrick Gold Corp               $27.5         $32
 First Quantum Minerals Ltd      C$33          C$20
 Freeport-McMoran Inc            $35           $25
 Glencore                        250p          175p
 Kaz Minerals PLC                670p          640p
 Newmont Corp                    $68           $70
 Sierra Metals Inc               C$4           C$2.75   
 
 (Reporting By Geetha Panchaksharam)
 ((geetha.panchaksharam@thomsonreuters.com))