- Antofagasta
- 20 March 2026 12:43:29
Source: Sharecast
The bank said it sees the most risk in copper, from both a commodity price and multiple perspective.
"If the market starts pricing in stagnating demand, we could see copper head back to $4.20/ lb as the market falls back into balance and restocking switches to destocking (Comex stocks have begun drawing)," it said. "Admittedly this is a risky and late downgrade, given that in the event of a successful ceasefire we would likely see the biggest reversal in these names," RBC added.
"We just struggle to see an off-ramp for either the US or Iran at this stage."
The bank downgraded Chilean copper miner Antofagasta to ‘underperform’ from ‘sector perform’ and slashed the price target to 2,800p from 3,600p.
Atalaya Mining was also cut, to ‘sector perform’ from ‘outperform’ and the price target reduced to 1,125p from 1,525p. The bank said it was less constructive on Atalaya from here as it is positioned on the upper end of the cost curve and potential cost pressures building from higher diesel and electricity prices.
"Even though ATYM is in a better position versus 2022 Russia/Ukraine with more than 50% of electricity from solar and long-term PPAs, still represents a risk," it said.
The bank downgraded Central Asia Metals to ‘underperform’ from ‘sector perform’ and chopped the price target to 170p from 230p.
RBC said: "CAML continues to generate double digit free cash flow yields and sector-leading dividend yield, but the growing headwinds to the investment case leave us less constructive on the name and we see risk/reward skewed to the downside as copper and zinc likely to be dragged lower in the case of slowing global growth."
RBC downgraded Swedish metals and mining company Boliden to ‘sector perform’ from ‘outperform’ and cut the price target to SEK600 from SEK750.
On the plus side, RBC upgraded Norsk Hydro to ‘outperform’ from ‘sector perform’ and lifted the price target to NOK95 from NOK85. It maintained Glencore at ‘outperform’ and said it was its "top pick" in diversified.