June 22, 2017 / 8:54 AM / 3 months ago

BUZZ-Miners: Deutsche Bank sees few bright spots

** Deutsche Bank reiterates cautious outlook on EMEA mining sector over the remainder of 2017 and slashes PT on Glencore , Anglo and BHP among others

** DB analyst Patrick Jones, in a note, says macro indicators for the mining sector continue to modestly deteriorate in Q2, with a few bright spots

** DB revises commodity price forecasts; cutting 17-19e for oil by 13 pct, modest cuts for zinc and copper; hikes price forecast for aluminum by 8 pct for 17-19e;

** DB downgrades BHP, GLEN and AAL 17-19e estimates by 9 pct on average given commodity price forecast cuts

** Says Rio Tinto remains its top pick(PT raised to 4200p from 4140p); cites Rio’s combination of cash return potential, higher quality growth, and lower opex portfolio

** DB sees some further downside in iron ore into the end of the year; cuts PT on BHP to 1400p from 1450p rates “hold”

** BHP is aiming 268 million to 272 million tonnes iron ore output this year

** DB says remain cautious on gold over the medium term, cites headwinds of strong global growth forecasts, U.S. interest rates hikes

** Among copper miners, DB slashes 17-19e EPS estimates for Antofagasta (down 1.3pct) by nearly 25 pct, expecting copper prices range bound around current levels for the remainder of 2017 before greater market tightness post 2018.

** Also cuts PT on Kaz down 3.5 pct, AAL down 1.1 pct, BHP down 0.7 pct

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