Metal Prices are not expected to stay at high levels. Global consumption demand of copper has not improved as the rest of the world is still suffering from the effects of the COVID-19 pandemic.
Revise up gold and copper price assumptions and maintain zinc price assumptions unchanged. We expect gold price to benefit from loose monetary policy and investor demand for safe-haven assets; we expect theannual average gold price to be around US$1,750/oz-US$1 ,800/az in 2020.
We expect the average annual copper price to trade between US$5,300/t-US$5,800/t and the average annual zinc price to be around US$2,000/t in 2020.
Maintain mining output assumptions unchanged. The production of the Company was stable in the first 3 quarters of 2020 and in line with its plan.
The increase in mining output was mainly attributable to the mines acquired and the expanded production capacity of existing mines.
Revise up TP to HK$7.32, but maintain "Neutral".