Message Sam 21 Juil 2012 10:26

First Quantum rises as copper expansion planned

Saturday, 21 Jul 2012


First Quantum Minerals Limited gained the most in more than 7 months after Jefferies Group Inc analysts named it a top pick and said expansion plans may make it a takeover target.

First Quantum rose 10% to CAD 18.27 in Toronto, the biggest gain since November 30. The Vancouver based company is raising capacity at its Kansanshi copper mine in Zambia. It also plans to develop the Sentinel mine in Zambia and build a copper smelter at Kansanshi.

Jefferies analysts Mr Christopher LaFemina and Mr Seth Rosenfeld said that “The company has a significant, low cost organic growth pipeline, a strong balance sheet, high quality management and is a potential acquisition target in the longer term. They have a buy rating on First Quantum and said it’s their top pick among copper producers trading in the UK.

Mr David Charles an analyst at Dundee Securities Corporation said that First Quantum is at the beginning of a major growth phase and could triple its copper production capacity over the next 5 to 6 years.

Mr Charles initiated coverage of the company with a buy recommendation and a price target of CAD 26.50. Outside of Africa, First Quantum restarted the Ravensthorpe nickel mine in Western Australia in October, almost two years after agreeing to buy the asset from BHP Billiton Limited it’s building a nickel and copper mine in Finland and is studying a copper project in Peru.