Kazakhmys to report on Thursday

Kazakhmys are will announce its first-half results for 2014 on Thursday 21 August. The consensus is for a net profit of £23 million.

Vladimir Kim
Source: Bloomberg

Kazakhmys is trading at £3.03. The share price is up 36% since the company revealed a net income of £190 million for 2013 in February, with analysts expecting a net profit of £84 million. The company’s announcement, that its underperforming mines would be sold off to Vladimir Kim, caught trader’s attention; this allows the miner to focus on its more efficient assets.

Cost-cutting and asset stripping have been a common theme in the mining sector, only yesterday BHP Billiton announced plans to effectively demerge the company. Not only will Kazakhmys not receive cash from transferring the unprofitable mines to the new entity, it will have to make a cash payment of $150 million which could push up the company’s net debt in the short term.

Analysts are not optimistic on Kazakhmys results. Out of the 27 ratings, three are buys, 14 are holds and 10 are sells.

A positive update on the asset transfer and strong figures could push the stock to £3.40 with £2.85 acting as support.

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