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In a research note put out out on Monday, Tom Meyer, base metals & minerals analyst at CIBC World Markets, gave First Quantum Minerals (TSX:FM) a “sector outperformer rating” and a 12 to 18 month target price of C$28 per share. Meyer cited better than expected operating costs and the fact that development projects are staying on schedule as positive news for the company.

In a research note put out out on Monday, Tom Meyer, base metals & minerals analyst at CIBC World Markets, gave First Quantum Minerals (TSX:FM) a “sector outperformer rating” and a 12 to 18 month target price of C$28 per share. Meyer cited better than expected operating costs and the fact that development projects are staying on schedule as positive news for the company.

As quoted in the note:

In Q4, copper sales of 94,836 tonnes once again fell short of production of 105,176 tonnes. Lack of available smelting capacity on the Copperbelt has been the reason why sales have lagged production over past quarters. The company indicated on the conference call that it has approximately 300,000 tonnes of copper concentrate stockpiled and ready to be treated once the new smelter ramps up and/or smelting capacity becomes available. As well as lowering operating costs, mainly due to the savings on sulphuric acid used to treat the oxide and mixed ores at Kansanshi, this stockpile is a source of cash in 2015/2016.

Overall, the note stated:

We believe the shares should command a premium given the positive growth outlook; however, the risk of ramp-up delay is likely going to result in a discount until confidence in project timelines increases.

Click here to read First Quantum’s (TSX:FM) press release regarding its Q4 and full year results.

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