Citi sees strong cash flows, stable output for Aussie metal miners in Dec qtr

Val-dOr Mining

13/01/2021 24:10

** Citi Research expects Dec-quarter production results of
Australian gold and metal miners to be more or less in line with
consensus with few operational surprises 
    ** Sees strong cash flow across the board despite a modest
pullback in gold prices 
    ** Expects St Barbara  SBM.AX , Resolute Mining  RSG.AX  and
Western Areas  WSA.AX  to recover materially from Sept qtr and
post stronger results
    ** Says rally in copper prices is expected to benefit cash
flow and costs for Newcrest Mining  NCM.AX  and Evolution Mining
 EVN.AX  
    ** Inventory management is expected to remain a key theme
for spodumene producers with both Pilbara Minerals  PLS.AX  and
Galaxy Resources  GXY.AX  expected to ship more- Citi
    ** Also expects to see an uptick in price realisation for
lithium miners compared to last qtr amid strong Chinese domestic
pricing
    ** Broker's picks in the sector remain NCM, Saracen Mineral
Holdings  SAR.AX  and Northern Star Resources  NST.AX 
    ** OZ Minerals  OZL.AX  is Citi's preference for copper
exposure and Nickel Mines  NIC.AX  for nickel
    ** In the lithium space, broker prefers Orocobre Ltd
 ORE.AX  

 (Reporting by Shruti Sonal in Bengaluru)
 ((Shruti.Sonal@thomsonreuters.com; Twitter: @shrutisonal26))