Sign up Canada
Proactive Investors - Run By Investors For Investors

Asiamet Resources comes out on top as Liberum provides a bearish assessment of the copper sector

In a sector note, the broker also revealed it is a 'seller' of three leading copper stocks
pcb with chinses flag at the centre
The dynamics of the market isvsuch that the rest of the world is no longer eating up supplies Chinese businesses aren’t buying

The mining team at Liberum Capital have singled out Asiamet Resources Ltd (LON:ARS) as its pick in a copper sector that is heading into surplus, with the price of the red metal set to slide to US$2.50 a pound by the middle of next year.

“We prefer the re-rating upside in developers over the negative earnings momentum of the expensive producers,” the broker said in a note to clients.

The dynamics of the market is such that the rest of the world is no longer eating up supplies Chinese businesses aren’t buying.

After hitting a 2019 nadir, the price should rally to around US$3 a pound, Liberum said.

Glencore a 'sell'

The broker is a ‘seller’ of Glencore (LON:GLEN), Antofagasta (LON:ANTO) and KAZ Minerals (LON:KAZ).

On Asiamet, it repeated its ‘buy’ advice and 20p a share price target (the stock closed Friday at 11.88p).

Last week in an initiation note Liberum called the AIM-listed Indonesia-focused mine developer the best kept secret in copper.

Analyst Richard Knights told investors: “Asiamet is an advanced copper exploration business with assets both near to production and globally significant in scale.”

View full ARS profile View Profile

Asiamet Resources Timeline

Related Articles

1534168158_gold_bars,_sized.png
Mon
Metminco offers a portfolio of Columbian exploration assets with significant upside
copper wire
August 10 2018
Recent weakness in the junior's share price is unjustified, says the broker, which reiterated its target price of 20p
Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use