Katanga Mining "buy," target price reduce

03/13/08 - UBS

NEW YORK, March 13 (newratings.com) - Analysts at UBS maintain their "buy" rating on Katanga Mining Ltd (31K). The target price has been reduced from C$25 to C$21.

In a research note published this morning, the analysts mention that the company plans to boost its production in the near future. Increased costs associated with Katanga Mining’s expanded production levels are likely to be partially offset by higher copper forward prices, the analysts add. The company’s $2.3 billion investment programme is expected to be funded through continued growth in its operating cash flows, UBS says.