After February's trading update, these full-year figures from Kazakh copper miner Kazakhmys (KAZ) contained few operational surprises. Yet the shares still slumped around 10 per cent on the day the figures appeared - significantly reflecting a $2.2bn (£1.45bn) impairment charge taken against the group's 26 per cent stake in Eurasian Natural Resources Corporation (ENRC), which saw its shares slump during 2012.
Kazakhmys' revenues actually held up reasonably well, despite the copper price fall and a 4 per cent reduction in sales volumes. However, a 25 per cent rise in the cost of sales meant that operating profit fell to $368m from $1.22bn in 2011, while the ENRC impairment explains the hefty headline loss. Operationally, a 12 per cent rise in ore output was offset by a fall in grades, which resulted in overall copper production falling 2 per cent to 294,000 tonnes.
Kazakhmys anticipates that 2013's production will be broadly flat on 2012, although global copper supply should move into surplus - suggesting further bad news ahead for copper prices. Capital expenditure, meanwhile, reached $1.3bn - reflecting the development of the Bozshakol mine, along with various other projects, and pushed net debt up to $707m from 2011's modest net cash pile.
Prior to these figures, Halyk Finance was expecting 2013 EPS of 58¢.
| KAZAKHMYS (KAZ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 400p | MARKET VALUE: | £2.1bn | |
| TOUCH: | 399-400p | 12-MONTH HIGH: | 970p | LOW: 382p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | na | |
| NET ASSET VALUE: | 1,195¢ | NET DEBT: | 11% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 3.28 | 1.14 | 167 | 14.0 |
| 2009 | 2.40 | 1.03 | 144 | 9.00 |
| 2010 | 3.24 | 1.59 | 260 | 22.0 |
| 2011 | 3.56 | 1.62 | 263 | 28.0 |
| 2012 | 3.35 | -2.20 | -437 | 11.0 |
| % change | -6 | - | - | -61 |
Ex-div: 24 Apr Payment: 21 May £1=$1.52 | ||||
