[ET Net News Agency, 19 September 2018] Citi Research lowered its target price for MMG
(01208) to HK$3.9 from HK$6.6, and downgraded its rating to "neutral" from "buy" to
reflect higher volume and cost uncertainties.
MMG changed its guidance on the flagship Las Bambas mine: 2018 copper volume guidance
cut to 375-395kt (from 410-430kt), C1 guidance revised to US$1.1-1.2/lb (from 1.0-1.1).
The research house's previous base case was 419kt, and US$1.1/lb.
Citi said the new guidance is due to localized wall instability resulting in delayed
access to sections of the Ferrobamba pit. The issue is unlikely to impact medium term
operations. (KL)