Read Larry Connors' blog – Short Term Trading Strategies
London-listed Chilean copper miner Antofagasta PLC (ANTO.LN) Wednesday said there are "grounds for optimism" that the global economic downturn has bottomed out and sees signs that copper supplies may not meet demand in future years.
"When worldwide demand recovers its normal rate of growth, a shortfall in mine supply could again develop. We believe that there could be strong support for the copper price in the years to come," Chairman Jean-Paul Luksik told shareholders at the company's annual general meeting.
The comments were more upbeat than Antofagasta's past assessments of the market, or those of some peers.
"Antofagasta at its AGM today showed more optimism in the copper industry compared to its FY2008 result presentation," Credit Suisse said in a research note.
Luksik said that stronger than expected buying from China had supported a recent copper price recovery and, looking ahead, marginal improvements in business and consumer confidence, coupled with improvements in financial markets, provides grounds for optimism for a broader recovery.
The miner's longer-term outlook was even more positive. Luksik said a lack of investment now would mean a tighter copper market in the future.
"Many projects have been deferred due to financing difficulties or due to lower profitability forecasts," Luksik said, noting estimates that more than 2 million metric tons of new copper mine capacity originally planned to be constructed by 2012 had been postponed or canceled.
Credit Suisse estimates $50.1 billion in copper project delays or suspensions in response to ongoing weak global demand and funding issues. Miners also have cut about 4% of global production due to softer demand.
"Copper has the best potential upside given the difficulties in re-starting production back online and the chronic supply issues ... plaguing the existing industry," Credit Suisse said.
Antofagasta operates three copper mines in Chile. It also has transport and water divisions.
Company Web site: http://www.antofagasta.com
-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347; jeffrey.sparshott@dowjones.com
(END) Dow Jones Newswires
06-10-09 0850ET
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
