[ET Net News Agency, 3 September 2019] Goldman Sachs kept its target price for China
Molybdenum (CMOC)(03993) unchanged at HK$3.4 but upgraded its rating to "buy" from
"neutral".
The research house believes the cobalt price has almost bottomed after declining over
50% to the current US$32,000/t, and Tenke running at break-even level as per 1H result.
Glencore has recently announced it would place Mutanda (17% of global cobalt production)
into care and maintenance by end of 2019 as a result of challenges of a low cobalt price
environment, pointing to signs of supply rationalization which could support price
stabilization.
Goldman believes CMOC would benefit from both copper and cobalt price improvements. (KL)