Sandfire Resources Ltd (SFR.AU) saw its stock price plummet by 5.02% in intraday trading, as ASX-listed copper miners faced downward pressure due to falling copper prices and concerns over impending U.S. tariffs on China. The sharp decline reflects growing uncertainty in the copper market and its impact on mining companies.
The sell-off in Sandfire shares comes as copper prices dropped, with investors bracing for the implementation of a significant 104% U.S. tariff on major copper consumer China. This development has sent shockwaves through the copper mining sector, with several ASX-listed copper miners experiencing substantial losses. Capstone Copper, for instance, saw its shares slide by as much as 8.6%, while MAC Copper's ASX-listed shares dropped by 4.4%.
Despite the current market turbulence, it's worth noting that Goldman Sachs has taken a contrarian view on Sandfire Resources. The investment bank recently upgraded Sandfire to a "buy" rating from "neutral," citing the stock's undervaluation and potential to benefit from medium- and long-term copper tailwinds. However, this positive outlook has been overshadowed by immediate market concerns, highlighting the volatile nature of the copper mining sector in the face of geopolitical and economic uncertainties.
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