Bank of China International lowered the forecast for Minmetals Resources (01208) weighted average capital cost by 0.6-1.4 percentage points.
The Zhitong Finance App learned that Bank of China International released a research report stating that it reaffirmed the “buy” rating of Minmetals Resources (01208) and lowered the weighted average cost of capital forecast by 0.6-1.4 percentage points to reflect the decline in risk-free interest rates. The target price was raised 12% from HK$3.19 to HK$3.57.
The bank said that the metal production of Minmetals Resources's two largest mines will reach or exceed the company's guideline limits in 2023. In 2024, the guideline production volume of its two copper mines, which are undergoing expansion, is lower than BOC International's forecast. Although BOC International lowered Minmetals Resources' profit forecast for 2023-25, the company's profitability is expected to improve over time.
