WOOD Flash – KAZ Minerals: 1H19 financial results – results in line, but USD 180m capex acceleration
KAZ Minerals reported its 1H19 financial results this morning (15 August). The EBITDA beat the consensus by 3%, due to slightly lower than expected costs. Net debt rose 29% hoh, to USD 2.56bn, in line with the consensus, due to negative FCF and the impact of the Baimskaya first cash payment in 1H19. The FCF was weaker than we expected, due to a USD 156m working capital build up. In addition, KAZ announced an interim dividend of US¢ 4/share, a 0.7% yield. 2019E production guidance remains unchanged and the cash cost guidance in the East Region/Bozymchak was lowered by US¢ 30/lb. However, the capex guidance has been increased by USD 180m to USD1bn, due to the acceleration of the Baimskaya infrastructure rephasing of capex at Aktogay (bringing forward USD 100m of spending from 2021E into 2019E). Given the falling copper price, we believe the increase in the 2019E capex could be seen as negative by the market, despite it being a rephrasing, rather than a higher budget.Kaz Minerals is a holding company. Co. and its subsidiaries operates in the natural resources industry through five divisions: Bozshakol, Aktogay and East Region, which are engaged in the mining and processing of copper and other metals in Kazakhstan; Bozymchak, which is engaged in the mining and processing of copper and gold in Kyrgyzstan; as well as Mining Projects, which is engaged in the development of metal deposits and processing facilities in Kazakhstan. Co. operates the Bozshakol and Aktogay open pit copper mines in Pavlodar and the East Region of Kazakhstan, three underground mines in the East Region of Kazakhstan and the Bozymchak copper-gold mine in Kyrgyzstan.
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.