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magazineBuy more Savannah on copper price dip
Savannah Resources (SAV:AIM) 5p
Gain to date: 25%
Original entry point: Buy at 4p, 3 November 2016
A 6% decline in the copper price has weighed on shares in miners with projects involving the base metal. That includes Savannah Resources (SAV:AIM) which is one of our top picks in the copper space as it is fast approaching maiden production from one of its projects in Oman.
Stockbroker Peel Hunt says the recent pull back in the copper price gives investors a chance to top up on good miners. It says to buy KAZ Minerals (KAZ) and Atalaya Mining (ATYM:AIM). We’d add Savannah to the list.
Peel Hunt has upgraded its copper price forecast by 5% for 2017 to $5,851 per tonne. Material for delivery in three months’ time is presently trading at $5,735 per tonne.
The broker predicts copper will continue to rise in value, averaging $6,225 per tonne in 2018 and $6,600 per tonne the year after. That provides a very attractive backdrop for Savannah to start ramping up production. Its first copper concentrate is expected to be produced in early 2018.
Don’t be put off by recent weakness in the copper price. Keep buying Savannah at 5p. (DC)
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