METLEN named a Mining Leader

METLEN is included among the leading metals and mining companies, according to a report by Berenberg.

More specifically, the Greek company ranks alongside major industry players such as Rio Tinto, Glencore, BHP Billiton, and Antofagasta, among others. At the same time, the report raised the target price for METLEN from 59 euros to 61 euros and reiterated a Buy recommendation.

Berenberg believes that METLEN is well positioned to deliver performance in a volatile energy market environment. Higher natural gas prices could lead to higher wholesale electricity prices and improved profit margins for the company’s highly efficient power generation segment.

In addition, the Metals division appears resilient, supported by the group’s own energy production, and is expected to benefit from the rise in aluminium prices (+14% year-to-date), driven by supply disruptions in the Middle East. Furthermore, the strengthening of the US dollar against the euro is also supportive.

Berenberg analysts also underlined that the strong synergies across METLEN’s business segments help maintain a low cost base, enabling the company to remain competitive across its markets, even during periods of high natural gas prices in Europe.