March 27, 2019 / 8:01 AM / 3 months ago

BUZZ-Berenberg stays cautious on precious metals, cuts Gem Diamonds

** Berenberg downgrades Gem Diamonds to “hold” following release of its FY18 results and new mine plan

** Says weaker mix in H1 to weigh on co’s free cash flow and expects an FCF burn in H1; cuts target price by 21% to 95p

** “Given expectation of negative free cash flow generation for 2019, we do not expect a dividend this year,” adds Berenberg

** Berenberg continues to be relatively “cautious” in the precious metals space

** Says market sentiment is “mixed”, with rough diamond prices starting the year on a relatively lacklustre note, but at least remaining stable, rather than weakening

** Berenberg also cut Petra Diamonds’ PT to 22p, Lucara Diamond Corp to C$1.50 and Firestone Diamonds 2p

** GEMD has fallen ~16 pct so far this year (Reporting by Jasmine I S in Bengaluru)

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