Equinox Minerals Shares Gain as Goldman Says Stock Will Rebound...

Equinox Minerals Shares Gain as Goldman Says Stock Will Rebound

By Jesse Riseborough

Aug. 14 (Bloomberg) -- Equinox Minerals Ltd., the developer of Africa's largest copper mine, rose the most in almost seven months in Sydney trading after Goldman Sachs JBWere Pty said the stock will rebound following a slump in mining stocks.

Equinox jumped 11 percent to A$3.52 as of 10:51 a.m. on the Australian Stock Exchange, the biggest gain since Jan. 23. Goldman has a A$7 price target on the stock and kept its `Conviction Buy' rating.

The company is building the $760 million Lumwana copper mine in Zambia to start output by year's end. The Lumwana mine will be ``one of the largest additions to global copper supply,'' Credit Suisse Group analysts said last month.

``On a 12-month view, there will be a rebound,'' Goldman analysts led by Melbourne-based Ian Preston said in a report dated yesterday. ``Given the scale, cash costs and life of the Lumwana project, investors will be rewarded in Equinox.''

First Quantum Minerals Ltd., the largest shareholder in Equinox, rose the most in almost two years in Toronto trading yesterday after beating profit estimates. Net income climbed 69 percent to $208 million, or $3.02 a share, in the second quarter from $123.1 million, or $1.79, a year earlier, Vancouver-based First Quantum said in a Aug. 12.