First Quantum Minerals "buy," target price reduced

01/14/08 - UBS

NEW YORK, January 14 (newratings.com) - Analysts at UBS maintain their "buy" rating on First Quantum Minerals Ltd (IZ1), while reducing their estimates for the company. The target price has been reduced from C$125 to C$120.

In a research note published this morning, the analysts mention that the Zambian government’s bill is expected to increase the tax rate on mining companies from 25% to 30% and hike royalty rates from 0.6% to 3.0%. The EPS estimates for 2008 and 2009 have been reduced from $11.78 to $11.50 and from $13.64 to $13.30, respectively.