BUZZ-Antofagasta gets a boost as brokers pare back pessimism

martes 7 de octubre de 2014 04:47 GYT

** Antofagasta shares attempt a recovery from 5-year lows as two brokers get a little less bearish.

** Stock up 1.4 pct, & is the fifth-top riser on Britain's FTSE 100.

** Still underperforms broader mining sector which is up 2.1 pct spearheaded by a 5.7 pct rise in Rio Tinto after it rejected a merger approach from smaller rival Glencore.

** On Antofagasta, Nomura lifts rating on the Chilean-based copper miner to "neutral" from "reduce", and Societe Generale hikes its recommendation to "hold" from "sell".

** Nomura reckons depreciation of Chilean Peso should prove supportive to Antofagasta, given about 30 pct of its operating costs are denominated in the currency.

** Valuation grounds are driver for SocGen's upgrade as bank sees no negative near-term catalyst for the stock.

** Lundin Mining's acquisition of the Candelaria copper mine in Chile suggests Antofagasta, which has similar operational characteristics, is fairly valued, says SocGen. (RM://