Copper Prices are expected to go down. 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. We expect copper price to go down in the coming months.
Maintain metals price assumptions unchanged. We expect gold price tc benefit from loose monetary policy and investor demand for safe-haven assets; we expect the annual average gold price to be around US$1,800/oz-US$2,200/oz in 2021. We expect the average annual copper price to trade between USSS^OO/t-USSe.OOO/t and the average annual zinc price to trade between US$2r400/t -US$2,700/t in 2021.
Maintain mining output assumptions unchanged. The production of the Company was stable in 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.
Maintain the TP at HK$7.32t but downgrade to "Sell".