The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0844 ET - Antofagasta shares have limited room to rise after a recent rerating, UBS analyst Daniel Major writes. The copper miner's shares have outperformed peers after investors rewarded its copper growth story, he says. Antofagasta is likely to meet its 30% volume growth target over the next three years but its near-term outlook is mixed, he says. It has limited growth momentum over the next year and a mixed near-term operational performance, he adds. There are better opportunities buying Anglo American, Teck Resources and Freeport-McMoRan, he adds. Antofagasta shares fall 4.2% to 3,590 pence. (adam.whittaker@wsj.com)
0405 ET - Risks to Zambia's copper mining industry are easing after Thursday's peaceful presidential vote in Africa's second-largest producer of the industrial metal, says Zaynab Hoosen, head of Africa Risk Forecasting at Pangea-Risk. Investors have committed as much as $10 billion to Zambia's copper mining industry since President Hakainde Hichilema came to office five years ago, although pressure is mounting on the government to ensure that the mining boom delivers economic benefits amid surging global copper demand. "Zambia's election comes at a critical point as global powers compete for a foothold in Africa's critical mineral supply chains," Hoosen says in a note. "President Hakainde Hichilema entered the vote as the favorite for a second term."(Nicholas.Bariyo@wsj.com;@Nicholasbariyo)
0350 ET - London's miners fall as gold trades lower and heads for a small weekly loss. New York gold futures fall 0.8% to $4,385.90 a troy ounce after a rally this week, with the dip suggesting there has been some profit-taking, MUFG's Soojin Kim writes. Copper miner Antofagasta continues to slide, having fallen nearly 7% Thursday on a copper guidance cut. It trades down 4.2%. Glencore falls 2.5% while precious metal miners Hochschild Mining, Fresnillo and Endeavour all fall over 2%. (adam.whittaker@wsj.com)
0221 ET - Antofagasta's growth projects are on track and will deliver meaningful volume growth over the medium term, Berenberg analysts Richard Hatch and Jasper Mainwaring write. The copper miner's Centinela concentrator project and Los Pelambres concentrate pipeline and expansion of the desalination plant will help drive volumes to 818,000 metric tons in 2028 from 654,000 tons in 2025. Shares closed Thursday at 3,756 pence. (adam.whittaker@wsj.com)
2059 ET - Gold declines in Asian trade. The yellow metal struggled to extend its rebound despite softer-than-expected U.S. producer-price index data, which suggests the next leg higher for gold prices might not be straightforward, say OCBC Group Research strategists Sim Moh Siong and Christopher Wong in a note. "Near-term consolidation or a moderate pullback cannot be ruled out unless softer data translate into lower yields/USD and firmer investment flows," they say. A high interest-rate backdrop typically weighs on nonyielding gold, while a stronger dollar usually makes the dollar-denominated precious metal more expensive for holders of non-dollar currencies. Spot gold drops 0.2% to $4,341.14 a troy ounce.
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