RBC Capital Markets remains bullish on the global mining sector heading into the fourth quarter, with analysts lifting their stance on diversified miners and fertiliser producers while trimming exposure to uranium.
The Canadian bank, in its Global Mining Best Ideas report looking to the fourth quarter, said it remains overweight on base and precious metals, citing strong price momentum in gold and copper, and resilient fundamentals in bulk commodities.
“We continue to see attractive free cash flow generation and an improved valuation outlook across key producers,” RBC said, noting copper’s rally to around $4.70/lb and a 47% year-to-date rise in gold prices.
The broker upgraded its call on diversified miners and fertilisers to overweight, reflecting dollar weakness, supply disruptions and constructive agricultural fundamentals.
Elsewhere, it cut uranium to 'market weight', saying recent price and equity strength reflect longer-term growth prospects.