KOZA GOLD 1H18 - GOOD SET OF RESULTS
Koza Altin reported TL498.7mn net income in its 1H18 IFRS based financials (1Q18: TL141.5mn, 2Q18: TL357.2mn), in line with our TL510mn estimate, good set of results… Note that 1Q18 is not as strong as 2Q18 because Ovacik became fully operational towards the end of January, and a similar case also applies to Kaymaz and Mastra. In 1Q18, the company sold 39.6k oz gold (table below) which has increased sharply to 76.6k oz in 2Q18. Low production and sales volume resulted in a significantly high cash cost of US$679/oz in 1Q18, which has then dropped largely to US$513/oz in 2Q18, a much more reasonable level. As of 1H18-end, the company has 7.4k oz gold in its inventories ready for sale. In 1Q18 and 2Q18, average gold prices were almost flat at US$1,329/oz and US$1,306k/oz, respectively (so far in 3Q18: US$1,232/oz). Koza Altin posted TL101.2mn EBITDA in 1Q18 (at 49.6% margin) and TL272.3mn EBITDA in 2Q18 (at 61.8% margin), totaling to TL373.5mn in 1H18 (57.9% margin) vs. our TL425mn estimate (it is difficult to estimate financials given lack of information flow), while the net income were TL141.5mn and TL357.2mn, respectively in 1Q18 and 2Q18. The company benefited from its net cash pile (1Q18: TL1,757mn, 2Q18: TL2,070mn) and long FX position (1Q18: US$241mn, 2Q18: US$172mn), which have supported the bottom line, as expected.Koza Altin Isletmeleri AS. Koza Altin Isletmeleri AS is a Turkey-based company established to explore and operate gold mines in Turkey. The Company had a gold production of approximately 338,182 ounces in the 12 months of 2012. As at 31 December 2012, it had 53 operating licenses and 406 exploration licenses throughout Turkey in the Aegean and Marmara regions, the Black Sea region and Central and Eastern Anatolia. The Company owns four operating mines: an underground mine at Ovacik, a mine at Mastra & Cukuralan where it utilizes both underground and open pit mining methods, a mine in Cukuralan where it utilizes both underground and open pit mining methods and an open pit mine at Kaymaz.
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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