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RBC Downgrades Dominion on Lower Rough Prices
Jun 14, 2016 10:04 AM
By Rapaport News
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RAPAPORT... Dominion Diamond Corporation was downgraded at RBC Capital
Markets as analysts predicted rough prices will fall and said the outlook for
the Jay project was ”challenging.”
The miner’s stock was cut to “sector perform”
from a previous rating of “outperform,” according to a research note June 13.
RBC also reduced its price target for the rough producer to $11 per share from
$13 per share.
The decision comes after the miner pushed
back by about two years the schedule for its Jay project, which is expected to add a decade to the lifespan of Dominion’s
Ekati mine in Canada.
“For now, lacklustre prices for smaller goods coupled with a
relatively high capex spend are weighing on sentiment around Jay,” RBC analysts
Des Kilalea and Richard Hatch wrote in a research note June 13. “Until we see a
credible plan for Jay and better rough prices, we expect the shares to lag
peers.”
“On the rough market, our view is that prices will soften in
the summer with, hopefully, slight firming later in the year.”
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Tags:
Dominion, Dominion Diamond Corporation, Rapaport News, RBC capital markets
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