WOOD Flash – KAZ Minerals: Baimskaya acquisition – oversold
Yesterday (2 August), KAZ Minerals fell 28.3%, or USD 1.35bn of its market cap, after announcing the USD 900m acquisition of the Baimskaya project in Russia. Press reports had circulated about this potential acquisition and we have previously said that such a deal would be negative for the share price. It is a large project for KAZ to take on in an unfamiliar location, which significantly increases its risk profile and first production is due only in 2026E. However, in our view, the move yesterday was a significant overreaction, which prices in the project destroying more value than the price it paid for the asset. Given that management is yet to present a feasibility study or decide on a financing route, this seems premature to us, given that it could walk away after the feasibility study and "only" incur the cost of the acquisition.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.