Kaz Minerals Share Discussion Threads

[puzzler2] 09/9/2018 15:54

To add a little perspective, the share price is currently sitting around support from early 2017. Let's see if that holds - if not, then it's looking like a fall to next support at 352p. As for £3 by Christmas, it's a possibility if the chart continues its slide.

[andyj] 09/9/2018 15:02

From the sustained naivety of your posts I suspect you are not yet old enough to buy them at any price.

[topazfrenzy] 09/9/2018 11:02

May be worth buying in under £1

[the canadian mounted] 07/9/2018 15:41

£3 by Xmas 😆😆😆😆9315;🤣ԍ15;🤣😂;😂😂

[tymedici] 07/9/2018 15:13

Unfortunately, the US non-farmyard figures were slightly better than expected. The market awaits the next Trump convulsion.

[topazfrenzy] 07/9/2018 15:13

£3 by Xmas here, maybe much less

[arja] 07/9/2018 15:10

short covering now happening and dow picking up

[arja] 07/9/2018 14:49

copper price really picked up but no real affect on KAZ yet with the friday blues

[tradejunkie2] 07/9/2018 14:43

Hello kitty cats, i'm back ;)

Are we all having a lovely and pleasant day today?

Looks like 3xx beckon because the company think $5.x bn is pocket change but the big cat thinks not.

Meeeooooow.

[manics] 07/9/2018 12:51

Did someone mention a double bottom..? Massive unwinding from what was, the rather glorious, Trump trade....

[arja] 07/9/2018 12:09

correction " most of the time "

[7ran5ac710n] 07/9/2018 11:56

Had an early 420 today, super chilled...

[rampant_bull] 07/9/2018 11:41

420s could be possible today

[the canadian mounted] 07/9/2018 10:53

Soon as this turns you will change your tune arja

[arja] 07/9/2018 09:39

dean ,
not that low I think but abouyt 420 is possible im next few weeks before a rally . Of course it partially depends on the copper price and if it makes a decisive turn soon.

[jonwig] 07/9/2018 09:36

"What Price Copper?"

They [KAZ] paid $900 million for a new copper deposit in Russia and lost about 50% of its share value! From the date of announcement, it has lost $2.5 billion worth of value. Seems rather dramatic for a company that has built its reputation acquiring assets and then developing them with operational excellence. The issue with this acquisition is that investors need to take a long-term view on the copper market as production will not impact it till 2025 but will cost about $5.5 billion to build. Companies are not like investors, they do not think of their share price quarter to quarter but plan for the next decade if not more. Kaz Minerals has one of the fastest and strongest growing copper profiles in the sector, as it produced almost 140,000 tons of copper from its Aktogay and Boshakol projects, an 18% increase in the first half of this year over 1H17.

This new asset could produce about 330,000 tonnes of copper over the first 10 years of production. To put it in perspective, 2018 annual copper production is about 270,000-300,000 tonnes, so we are talking more than near doubling over the next decade.

To be positioned in such a key commodity that is starved for growth and development is an extremely sensible strategy. But for a company to lose $2.5 billion worth of value for an asset that cost $900 million seems a tad bit harsh, no matter how uncertain the market is on the back of an Emerging market demand collapse or U.S./China trade tariffs impacting the Chinese economy.

The issue is not the asset or the price paid. It is the timing. Today when investors are not sure whether the floor for copper is $6000/tonne or $4000/tonne, valuations are meaningless. At the end of the day, what drives a commodity price is its inventory balance, even if distorted temporarily by its perception. Let's not forget, every day the copper price is averaging $6000/tonne, the company is still earning revenues on its 300,000 tonnes of annual copper, generating an EBITDA in 1H18 of $690 million with a free cash flow of $308 million. It is extremely cash generative and maintains one of the lowest cost quartile positions on the curve. At times of distress, it pays to do your homework.

[arja] 07/9/2018 09:35

canadian mounted ,
what a constructive comment !I call it as I see it sport and you should think about
P of C .

[deanroberthunt] 07/9/2018 09:34

this looks like the 4th Elliot wave down, usually have 4, so around 250-300p I reckon

[arja] 07/9/2018 09:14

maybe it has fallen too much for a short trade now as risk/reward ratio is not that great - but sadly KAZ is likely to fall a bit further with any rally sold in to .
yes , jobs figures from USA may change things edjge2 .

[tsmith2] 07/9/2018 09:13

Do we do gold?

[the canadian mounted] 07/9/2018 09:10

Quite dangerous holding this stock 🤣🤣🤣🤣9315;

[edjge2] 07/9/2018 08:56

Yank jobs today so if bad for gold may see 3xx. I think may be turning point as good as gold.