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Credit Suisse Cites First Quantum, Lundin Mining, Equinox Minerals as Picks Among Canadian Metals and Mining

Credit Suisse Cites First Quantum (FM.TO), Lundin Mining (LUN.TO), Equinox Minerals (EQN.TO) as its picks among Canadian Metals and Mining.

"Copper remains our top structural base metal, with falling grades and tight supplies causing our long-term prices to rise again," Credit Suisse said in a morning note.

"Thus far in 2010, copper prices have been pushed down by risk aversion, but have never approached the cost curve. We continue to view fundamentals for copper as strong - +300Kt monthly imports into China have kept stocks falling while mine supply response looks scarce.

"We've examined the outer years supply growth to mid-decade and found mines are numerous less- than-200ktpa mines with expansions requiring the consistency of high prices to keep them developing. As a result, we've edged up our 2012-2013 and long-term price assumption considering many of the localities expected to deliver mine capacity additions are looking more hostile, requiring miners to seek faster, more robust payback thresholds."

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

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