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Share Price:
Up 1,424.00p
Change Today:
12.00p
Market Cap:
14,039m
Sector:
Mining

Jefferies raises Antofagasta and Glencore to 'buy'

By Iain Gilbert

Date: Tuesday 24 Nov 2020

LONDON (ShareCast) - (Sharecast News) - Analysts at Jefferies upped their rating on both Antofagasta and Glencore to 'buy' on Tuesday as they took a fresh look at the broader metal and mining industry.
In the case of Antofagasta, Jefferies, which has had a 'hold' rating on its shares due to a premium valuation based on its prior copper price deck and downside risk to its production in 2021, did warn that it expects to see an increase in operating costs after 2020 and an expected increase in capex as the company invests in its organic growth.

However, while the analysts said volumes were "still risky" in 2021 and unit costs and capex was likely to increase, they added that these factors were "more than offset" by Antofagasta's high exposure to copper, as well as the scarcity of copper miners in the FTSE.

"On our new estimates, we value Anto at 1,400.0p per share, which is 23% above Anto's current share price and compares to our prior TP of 1,100.0p per share," said Jefferies.

The analysts also said fears relating to Glencore's ongoing Department of Justice investigation and its operating and geopolitical risks were again easily offset by the group's leverage to a rising copper price.

On the analysts' new estimates, Glencore's copper business accounted for half of its industrials unit's net present value, or 32% of the group's total NPV, and that free cash flow yield for 2021-2023 will average 16% per year.

"This is high enough to justify a 'buy' rating on Glencore shares, and our updated NPV estimate of 244.0p per share also is consistent with a buy-rated stock."

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Antofagasta Market Data

Currency UK Pounds
Price 1,424.00p
Change Today 12.00p
52 Week High 1,925.00p
52 Week Low 902.20p
Volume 293,626
Shares Issued 985.86m
Market Cap 14,039m

Performance Indicators

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What The Brokers Say

Strong Buy 2
Buy 1
Neutral 8
Sell 0
Strong Sell 8
Total 19
sell
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Antofagasta Dividends

  Latest Previous
  Final Interim
Ex-Div 22-Apr-21 03-Sep-20
Paid 14-May-21 02-Oct-20
Amount 48.50¢ 6.20¢

Trades for 22-Jun-2021

Time Volume / Share Price
15:17 95 @ 1,424.00p
15:17 23 @ 1,424.00p
15:17 175 @ 1,424.00p
15:17 95 @ 1,423.50p
15:17 13 @ 1,423.50p

Antofagasta Key Personnel

Chair Jean-Paul Luksic