Antofagasta reported weak H1 results on the back of price and volume headwinds. The benefit of lower costs was completely overshadowed. While copper prices have recovered materially in recent months, we remain sceptical of this rebound. With a tangible macro / demand recovery – that is still awaited, and gradually retreating supply concerns, the red metal could witness near-term volatility. Hence, we maintain our caution at current (share) price levels.
21 Aug 2020
Weak H1 + uncertain H2
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Weak H1 + uncertain H2
Antofagasta plc (ANTO:LON) | 2,232 -714.2 (-1.4%) | Mkt Cap: 22,004m
- Published:
21 Aug 2020 -
Author:
Varun Sikka -
Pages:
4
Antofagasta reported weak H1 results on the back of price and volume headwinds. The benefit of lower costs was completely overshadowed. While copper prices have recovered materially in recent months, we remain sceptical of this rebound. With a tangible macro / demand recovery – that is still awaited, and gradually retreating supply concerns, the red metal could witness near-term volatility. Hence, we maintain our caution at current (share) price levels.