stockwatch.com Globe says Hacking keeps First Quantum at "neutral"
2024-01-11 08:05 ET - In the News
The Globe and Mail reports in its Thursday, Jan. 11, edition that Citi analyst Alexander Hacking has reaffirmed his "neutral" recommendation for First Quantum Minerals. The Globe's David Leeder writes that Mr. Hacking slashed his share target by $18 to $14. Analysts on average target the shares at $17.99. Mr. Hacking says First Quantum is now using an 18-month closure of its Cobre Panama as his base case scenario when assessing the Vancouver-based miner as its dispute with the Panamamian government continues. He predicts the mine will not have production through all of 2024 and "most" of 2025. Mr. Hacking says in a note: "We don't know what will happen in Panama. The best case on timing (approximately 10 per cent) appears to be that the company negotiates with the new government and there is a pathway to reopen the mine in late-2024. Our base case (approximately 70 per cent) is that the mine faces a 12- to 30-month closure as FM negotiates with the new government, works toward a 'national social license' (possibly requiring a referendum) and then reopens in 2025-26. The bear case (20 per cent) appears to be that the mine remains closed for many years until arbitration proceedings are full played out."