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RBC Keeps First Quantum's Outperform Rating, C$45 Price Target

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RBC Capital Markets on Monday maintained First Quantum Minerals' (FM.TO) outperform with a speculative risk rating while its C$45 price target remained unchanged.

RBC expects a positive reaction in First Quantum's shares following the release of an updated technical report on its La Granja joint venture with Rio Tinto in Peru.

The report outlined 4.8 billion tonnes of measured and indicated resources grading 0.48% copper for 23 million tonnes of copper. The project also contains inferred resources of 5.2 billion tonnes at 0.40% copper for 20 million tonnes of copper.

La Granja ranks as the world's second-largest greenfield copper resource, and RBC sees La Granja as a future development option for First Quantum and likely slots in behind the company's Taca Taca project in Argentina.

Meanwhile, National Bank of Canada reiterated First Quantum's outperform target and $47 price target.

The bank is encouraged by the large-scale/long-term potential of La Granja, which First Quantum believes has the potential to become a Tier 1, multi-generational copper mine.

National Bank conservatively valued First Quantum's interest in La Granja via an in situ resource credit of US$800 million.

First Quantum traded at $35.15 per share at last look Tuesday on the Toronto Stock Exchange.

Price: $35.47, Change: $+0.57, Percent Change: +1.63%

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