Mining: RBC turns positive on precious metals, sees bulks at risk

Sandfire Resources America

05/04/2018 08:17

** RBC ups its view on precious metals to "overweight" and
uranium to "market weight", while cutting base metals and bulks
    ** The broker is positive on precious metals names given
geopolitical risks remaining elevated, unpredictable policy
changes, rising market volatility, and growing inflation
expectations
    ** Broker adds to its Q2/2018 global mining best ideas
portfolio Pan American Silver  PAAS.TO , Polymetal  POLYP.L ,
Detour Gold  DGC.TO  and Antofagasta  ANTO.L 
    ** Removes ArcelorMittal  MT.AS , Anglo American  AAL.L ,
Vale  VALE3.SA , and Pretium  PVG.TO 
    ** RBC remains constructive on base metals ("market weight")
though in the near term expects some volatility around macro and
rising copper inventories suggest ample near-term supply
    ** Broker expects diversified/bulk commodities
("underweight") equities to be most at risk with potential
impact from tariffs and a slowing Chinese property market,
albeit transitory with a stronger H2 expected
    ** RBC believes uranium market is supported by recent
producer curtailments while the demand side will benefit from
ongoing reactor re-start



    






 ((kateryna.urbanek.thomsonreuters.com@reuters.net))