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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.”

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“Asiamet’s strategy is on the near-term development of BKM and BKZ and then the development of Beutong, which is, in our view, the key asset of most interest, which will place Asiamet as a major copper player”

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