Fox-Davies Capital issued a number of revised buy notes today on companies with exposure to copper. The revision was due to analysts at Fox-Davies increasing their 63 month forward copper curve to a significantly higher level then where it was three months ago. Copper prices have continued to remain robust as stock levels at the London Metal Exchange have continued to remain low in contrast to forecasts that had predicted an increase this year and global growth slowed.
Fox-Davies reiterated its buy stance on Discovery Metals ( AIM: DME, ASX: DML) with a share price target of A$1.96 compared to a current share price of A$0.40 and, and increased its target price for EMED Mining to 129 pence per share compared to a current price of 18 pence. The EMED price is dependent on the company securing the acquisition of the Rio Tinto copper mine in Spain.
24 copper prices are currently hovering around US$3.90 per pound, more than double the price both Discovery Metals and EMED Mining have stated they require to operate a commercially feasible operation.