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Questor says HOLD

Chinese demand concerns emerged this week after reports suggest that China had raised minimum reserves on six banks over the next two months.

It is a way to withdraw cash in the economy and help new inflationnistes.La pressures led to a sell-off in Asian equities.

However, the price of copper also reached a maximum of 27 months last week – something which should sustain gains for the producer based on the Chile.

Price has propelled at this level, in the hope of obtaining as u.s. data poor employment would trigger an additional series of facilitate quantitative - with property purchases probably start at the beginning of next year.

Such an approach is likely to lead to a weakening of the dollar, which makes it the cheapest prices in other monnaies.Il is also likely to encourage the purchase of products as investors try to protect themselves from the motto of the weakening of the investors.

Developers more distributed on the rise in the price of copper spoke of copper reaching $10,000 per tonne, compared to $8,300 now.Questor is rather sceptical about these forecasts distributed on the rise, while a falling dollar will support the price of copper.

There is also the question of evaluation - and the city believes the Antofagasta stock received in advance of himself.

32 Analysts followed by Bloomberg with ratings on the company, only 10 were purchased, with 13 saying hold and nine sell.

The shares are trading on earnings from December 2010 multiple 16.9, falling to 11.1 year prochaine.Cet example demonstrates the growth of the production company should show next year.

Marcelo Awad, Chief Executive of Antofagasta, said last week that his most recent mine will start producing the next month.Fourth group operating in the Chile named Esperanza, mine is scheduled to start between 15 and 20 November said Mr. Awad.

It also provides for the recovery of demand in Europe and the United States increase a deficit of metal.

Copper demand will surpass offers approximately 300 000 tonnes in 2010, and between 400 000 and 450 000 tonnes in 2011, said Mr. Awad.

The company also has lots of money on his last update bilan.à, he had a position of net cash of $1 decision-making (￡ 886 m) .the analysts expect this balance of cash in the fall in the coming months, the Group invests in new projects, before bouncing back to more of $issuers next year.

The current dividend yield is just 1. 8pc, but the generative nature of the company cash leaves a lot of opportunities to increase and a special dividend.

However, some believe that the chances of a special payment are faibles.Antofagasta maintain its current dividend payout ratio, some analysts estimate that it could fund its new projects capital expenditures requirements without the need to raise additional shares or debt.

Actions have been first recommended to 915?p on 13 December last year, and they are now 34pc to market until 7pc.Les actions appear fully appreciated the time and therefore the score is decommissioned to hold from buy.

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