Analyst Actions: UBS Downgrades Inmet Mining, Cuts Price Target

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UBS analysts believe investors should refrain from buying shares of Inmet Mining Corp. (IMN.TO) as the company continues to fund the hefty development costs of its $6.2 billion open pit copper project in Panama, the Globe & Mail reported.

UBS analysts recently visited the site, where construction camps, access roads and the port are ramping up. "Given the project's early stage, progress is hard to gauge; construction is reportedly one-month behind schedule but the timeline going forward includes contingencies," they noted in a research note today.

One key concern, however, is the price of copper, which is back to testing its lows of this past summer and hurting the value ascribed to the project.

"With substantial cash being sunk in a currently net asset value-negative project, we downgrade our rating from 'buy' to 'neutral.'"

UBS cut its price target to $55 from $60.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

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