KAZ Minerals - bounce back, (or, what has the Roman ever done for us?)

Tuesday, Aug 28 2018 by

Kaz Minerals (LON:KAZ) has recently halved in Value.

It seems to be due mainly to the fact the the company has bought a new project to develop.

It also seems the market didn't want them to continue to develop the business for the future as it would hit financial performance in the near/mid term. Also they have bought the new prospect with cash and shares from, amongst others, Mr Abramovich, which means he is now a major share holder which may have had an influence.

OK, so I'm oversimplifying. But as I don't have any political edge or constraints in my investment decisions I can buy simply because I think the share price will be higher in the future compared to now (or higher gain than the market average I suppose, to be more exact).

Over that last couple of years, Kaz has seen a good performance and it now seems very under priced despite, or maybe because of, the complicated ownership situation and the investment required to develop the new prospect.

Regarding the second point, surely that is what Kaz does and has been shown to do successfully over time.

I feel the drop may be overdone and the share price will soon revert back to fair value.

Anyone got more background or current info on Kaz Minerals (LON:KAZ).

I have just bought (a small position on Friday)

Edit 1:  I topped up at lunchtime today (but with a stop in place).

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way

Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
1 thumb up
1 thumb down
Share this post with friends



KAZ Minerals PLC is a United Kingdom-based copper company. The Company operates in the natural resources industry through five segments: East Region, Bozymchak, Bozshakol, Aktogay and Mining Projects. The East Region, Bozshakol and Aktogay segments are engaged in mining and processing of copper and other metals in Kazakhstan. The Bozymchak segment is engaged in mining and processing of copper and gold in Kyrgyzstan. The Mining Projects segment is engaged in the development of metal deposits and processing facilities Kazakhstan. The East Region segment contains the entity Vostoktsvetmet LLC (VCM), whose principal activity is the mining and processing of copper and other metals, which are produced as by-products from four underground mines and three concentrators located in the eastern region of Kazakhstan. more »

LSE Price
439.2p
Change
-4.8%
Mkt Cap (£m)
2,178
P/E (fwd)
5.7
Yield (fwd)
2.1



  Is LON:KAZ fundamentally strong or weak? Find out More »


5 Posts on this Thread show/hide all

vik2001 28th Aug '18 1 of 5

the new copper deal purchase meant capital expenditure would remain very elevated for the next 8 years and…FCFs will remain negative over the period driving net debt up.
cheap can get cheaper, you might see a bounce up but not one for me,

| Link | Share
mmarkkj777 28th Aug '18 2 of 5

Hi Vik,

Thanks for your comment. Yes, I can understand not for everyone. You're right cheap can always get cheaper. I just think it was over-sold.

This one will be like Marmite I guess. Doing OK since I posted though. Just hope its not a false dawn.

| Link | Share
alexcunningham91 29th Aug '18 3 of 5

thls can drop to 422p, may go in at that, but could also go as low as 372p. options are to have some at both levels. interestingly 372 is the stability level of the share

| Link | Share
mmarkkj777 29th Aug '18 4 of 5

Hi Alex,

You could well be right. I hope you wont take it personally if I say I hope they go up from here and don't fall to either of these levels that you mention (my stop will be triggered well above both) ;-)

I've made good money on Kaz in the past, but each deal needs to be treated on it's own merits. No room to be sentimental. I'm looking for 600p.

| Link | Share
mmarkkj777 21st Sep '18 5 of 5

I hope its not to early to say (famous last words), but Kaz does look like it has bottomed out and now is gathering some (early) momentum. Topped up this morning.

| Link | Share

Please subscribe to submit a comment






Stock Picking Tutorial Centre



Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis