IA Capital Markets reveals its top 14 stock picks for 2022 * Hudbay Minerals Inc. (HBM-T) with a “buy” rating and $14 target. Average: $12.71.
Analyst Puneet Singh: “Hudbay saw turbulence in 2021 mostly from sentiment related to Peru politics, and that has rendered HBM’s shares way too cheap given our outlook for copper. Mining accounts for 10 per cent of Peru’s GDP and 60 per cent of its exports. If taxes are too high, it prevents re-investment by current operators and will push others away from investing in Peru altogether, thus we believe President Castillo won’t be as harsh on miners as some are predicting. In 2022, HBM will benefit from a full year of increased copper production from its higher-grade satellite Pampacancha at Constancia in Peru that it started accessing last year, and a full year of increased gold production from its Lalor mine in Manitoba that just re-started its fully refurbished gold plant last year. The market is discounting this growth and overlooking HBM’s key Arizona catalyst in 2022. HBM’s Copper World discovery is looking like it will help Rosemont finally get the green light in a private land scenario. A PEA is expected on Copper World in H1/22 and will allow investors to ascribe value once again to the asset (currently a free option for shareholders).”