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What is the outlook for ASX 200 copper shares in September?


Open copper pipes

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Macquarie has lowered its forecast for copper costs over CY22 to CY24 by 5% to 15%.

In accordance with The Australian, the dealer reckons softening demand is “set to widen the excess”.

As is common with ASX mining shares, a change in copper value forecasts has a flow-on impact on the efficiency expectations for ASX 200 copper shares.

The article said:

The downgrades have a cloth impression on near-term earnings forecasts for copper pure performs, with earnings estimates for OzMinerals, Sandfire and 29Metals down by 30% to 90%.

Down these 12-month value targets go for ASX 200 copper shares

On the again of those forecasts, Macquarie has additionally lowered its share value targets for a number of ASX 200 copper shares.

The dealer minimize its value targets on OzMinerals Restricted (ASX: OZL), Sandfire Sources Ltd (ASX: SFR) and 29Metals Ltd (ASX: 29M) by 9% to 17%.

After all, Sandfire and 29Metals are outdoors the ASX 200. However the dealer has additionally minimize its projections on two of the massive ASX 200 miners that aren’t copper pure-plays however they do produce the crimson metallic.

Macquarie minimize its 12-month share value goal for BHP Group Ltd (ASX: BHP) to $42, and Rio Tinto Restricted (ASX: RIO) to $97.

Immediately, the copper pure-plays are a blended bag. The OzMinerals share value is barely simply within the inexperienced, up 0.12% to $25.33 on the time of writing. Meantime, the Sandfire Sources share value is down 3.2% to $3.93. The 29Metals share value is down 2.1% to $1.88.

What concerning the long-term outlook for copper?

The market was abuzz in early August when BHP made a shock takeover bid of OzMinerals.

The provide was for $25 money per share, a couple of 35% premium on the OzMinerals share value on the time.

The OzMinerals board shortly rejected the provide, saying it “considerably undervalues” the corporate.

However the mere proven fact that the largest sources firm within the ASX 200 made a play for it definitely communicated so much to traders concerning the essential function of copper in our decarbonised future. Kinda says one thing concerning the long-term outlook for copper typically, proper?

The OzMinerals share value has held agency this week regardless of the corporate reporting a 60% revenue plunge in its half-year outcomes on 26 August.



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