Kazakhmys (KAZ) canned its half-year dividend on the back of an $823m (£528m) impairment charge on its 26 per cent stake in Eurasian Natural Resources (ENRC ), its Kazakh stablemate that is being taken private after a controversial five-year spell on the London Stock Exchange.
The ENRC hit, together with additional impairments amounting to $146m, pushed the copper miner into a half-year net loss of $962m, against a profit of $122m for the 2012 half year. Excluding one-off charges, cash profits for continuing operations were down by 35 per cent to $438m. The founders of ENRC will buy back the mining group by the end of 2013, providing Kazakhmys with $875m for its stake, which will be used to reduce net borrowings - up by 78 per cent to $1.26bn in just six months.
Copper cathode output was up by 7 per cent during the period to 144 kilotonnes (kt), while a substantial rise in sales volumes more than offset a 9 per cent fall in realised copper prices. Production was up due to higher ore volumes, as average grades worryingly fell to 0.96 per cent. Full-year production guidance is set at the upper end of the 285-295 kt range.
Broker Investec Securities anticipates adjusted 2013 EPS of 12.1¢ (-29.4¢).
| KAZAKHMYS (KAZ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 305p | MARKET VALUE: | £1.6bn | |
| TOUCH: | 305p-307p | 12-MONTH HIGH: | 840p | LOW: 230p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | na | |
| NET ASSET VALUE: | 983¢ | NET DEBT: | 24% | |
| Half-year to 30 June | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 1.52 | 81 | 3.0 | 3.0 |
| 2013 | 1.57 | -193 | -34.0 | nil |
| % change | +4 | - | - | - |
£1=$1.56 | ||||
