Nevsun Resources downgraded to "hold"

10/29/03 - Canaccord Capital

NEW YORK, October 29 (New Ratings) – Analysts at Canaccord Capital downgrade Nevsun Resources Ltd (NSU) from "speculative buy" to "hold."

Shares of Nevsun Resources, a mining and exploration company, are currently trading at $8.42.

According to Canaccord Capital’s research note published this morning, Nevsun Resources’ Bisha property is a strategically crucial asset. This is because the property is rich in sulphide, gold and copper. Nevsun Resources holds a 90% interest in the property, the analysts add. The Northwest zone is also expected to yield a significant amount of sulphide, the analysts say.

Canaccord Capital reports that the Segala and Tabakoto gold deposits in Mali are likely to be highly productive. Nevsun Resources’ shares are, however, overvalued, considering the final results have not been announced by any of the company's divisions. This has prompted a downgrade in the rating, the analysts explain.

Canaccord Capital downgrades Nevsun Resources from "speculative buy" to "hold."