Damo: Minmetals Resources (01208) production meets production standards and maintains “gain” rating

The Zhitong Finance App learned that Morgan Stanley released a research report saying that Las Bambas, a subsidiary of Minmetals Resources (01208), produced 109,000 tons of copper concentrate in the second quarter of this year, which is in line with annual production guidelines of 38,000 to 400,000 tons. The Khoemacau mine produced 22,000 tons in the first half of the year, accounting for 42% to 46% of the annual guideline. Damo expects production to increase in the second half of the year as equipment utilization increases, new mining equipment investment, and higher ore grades. Damo maintains the Minmetals Resources “gain” rating. The target price is HK$11.7. It is believed that the operating conditions of each mine will be relatively stable in the second half of the year, and Las Bambas production is expected to reach the upper limit of the annual guideline. Coupled with easing social stability concerns after Peru's presidential election, improvements in production and costs will continue to drive profit growth.