Daiwa: Maintain "buy" rating for Minmetals Resources, the operating conditions of various mines will be more stable in the second half of the year.

Morgan Stanley released a research report stating that the copper concentrate production of Las Bambas, a subsidiary of Minmetals Resources, in the second quarter of this year was 109,000 tons, in line with the annual production guidance of 380,000 to 400,000 tons. The production of Khoemacau mine in the first half of the year was 22,000 tons, accounting for approximately 42% to 46% of the annual guidance. Morgan Stanley expects that with the improvement in equipment utilization rate, the introduction of new mining equipment, and higher ore grades, production in the second half of the year is expected to increase. Morgan Stanley maintains a "hold" rating on Minmetals Resources with a target price of 11.7 Hong Kong dollars, believing that the operating conditions of various mines in the second half of the year will be relatively stable. The production of Las Bambas is expected to reach the upper limit of the annual guidance. Furthermore, concerns about social stability in Peru after the presidential elections have eased, and improvements in production and costs will continue to drive profit growth.