Financial Trading Blog
Stock of the day 15/08/2016 – KAZ Minerals PLC
Compared to 2015’s deep plunge 2016 has been relatively successful for the copper-focused miner. Starting at £1.02, around 30p above the lows struck last September, the stock began to rise in the first few months of the year, this growth gaining pace until KAZ hit an 8 month high of £1.93 at the start of March, a price it would then best, after a brief wobble, 6 weeks later when it reached £1.98 at the tail end of April. Since then, however, things have been a bit trickier for the stock, with KAZ eventually slumping to a 4 month low of £1.15 in the aftermath of the Brexit referendum before bouncing back to a current trading price of £1.65 (IT-Finance.com, 15/08/2016).
(Source: IT-Finance.com 15/08/2016)
Back in February KAZ Minerals revealed a full year pre-tax profit of $12 million while announcing it wouldn’t be paying a dividend for 2015. That sounds pitiful, but it was a vast improvement on the $169 million loss posted the year before; if anything the fact it posted any profit at all is fairly impressive given the sustained metal price slump. It wasn’t all good news, however; net debt continued to swell, more than doubling to $2.25 billion.
In regards to KAZ Minerals interim update on Thursday, investors will be far more interested in the company’s future rather than its past. In other words, those half year figures will likely matter less than the company’s comments on its Bozshakol and Aktogay projects, both mines vital to KAZ’s financial stability, i.e its looming 2017 and 2017 debt repayments, going forwards. For those still interested in hard data, KAZ Minerals is expected to post earnings per share of 2 cents, while net debt is forecast to climb 13% to $2.6 billion.
KAZ Minerals PLC has a consensus rating of ‘Hold’ with an average target price of £1.39.
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