April 5, 2018 / 7:17 AM / 8 months ago

BUZZ-Mining: RBC turns positive on precious metals, sees bulks at risk

** RBC ups its view on precious metals to “overweight” and uranium to “market weight”, while cutting base metals and bulks

** The broker is positive on precious metals names given geopolitical risks remaining elevated, unpredictable policy changes, rising market volatility, and growing inflation expectations

** Broker adds to its Q2/2018 global mining best ideas portfolio Pan American Silver, Polymetal, Detour Gold and Antofagasta

** Removes ArcelorMittal, Anglo American, Vale, and Pretium

** RBC remains constructive on base metals (“market weight”) though in the near term expects some volatility around macro and rising copper inventories suggest ample near-term supply

** Broker expects diversified/bulk commodities (“underweight”) equities to be most at risk with potential impact from tariffs and a slowing Chinese property market, albeit transitory with a stronger H2 expected

** RBC believes uranium market is supported by recent producer curtailments while the demand side will benefit from ongoing reactor re-start

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