October 10, 2018 / 11:18 AM / in 8 days

BUZZ-Barclays keen on mining sector, sees boost from stronger dollar

   ** Barclays begins coverage on North American mining sector
with a "positive" outlook, says current dollar-positive
environment has taken its toll on mining equities, offering
investors an attractive option
    ** Says gold now a cheap risk-off hedge in a period of
rising uncertainty, and copper fundamentals remain healthy;
meanwhile, mining equities are generally in good shape with
balance sheets repaired and capital allocation practices the
healthiest in years
    ** Barclays sees potential for a multi-year bull cycle
ahead, particularly for copper, which the brokerage believes, is
a sector with a strong demand growth story
    ** Brokerage sees underappreciated quality at a discount
with Teck Resources and Goldcorp and still
sees upside in well-known names - Agnico Eagle Mines,
Newmont Mining, Franco-Nevada Corp, and Wheaton
Precious Metals
    ** "Underweight" on Freeport-McMoRan on low-growth
and a weak project pipeline, and Yamana Gold where
brokerage sees short mine lives and a lack of catalysts as
weighing on valuation
    ** The S&P 1500 metals and mining sector has
declined 11 pct this year    
 Company     Rating      Last        Price
 Name                    Closing     Target
                         Price       
 Agnico      Overweight  $33.69      $39
 Eagle                               
 Mines                               
                                     
 First       Overweight  C$14.47     C$18
 Quantum                             
                                     
 Franco-Nev  Overweight  C$79.64     C$70
 ada Corp                            
                                     
 Freeport-M  Underweigh  $13         $12
 cMoRan Inc  t                       
                                     
 Goldcorp    Overweight  C$12.84     C$14
 Inc                                 
 Hudbay      Overweight  C$6.23      C$8
 Minerals                            
                                     
 Kinross     Overweight  C$3.55      C$4
 Gold Corp                           
                                     
 Lundin      Overweight  C$6.27      C$8
 Mining                              
 Corp                                
                                     
 Newmont     Overweight  $30.11      $34
 Mining                              
 Corp                                
                                     
 OceanaGold  Equal-weig  C$3.68      C$4
 Corp        ht                      
                                     
 Royal Gold  Equal-weig  $74.70      $78
 Inc         ht                      
                                     
 Teck        Overweight  C$30.77     C$38
 Resources                           
                                     
 Ltd                                 
 Wheaton     Overweight  C$22.36     C$21
 Precious                            
 Metals                              
 Corp                                
                                     
 Yamana      Underweigh  C$3.20      C$2.50
 Gold Inc    t                       
                                     
 
 (Reporting by Medha Singh in Bengaluru)
  
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