Kazakhyms plc is the tenth largest copper cathode producer and the tenth largest mined copper producer in the world. Its principal business is the mining, processing, smelting, refining and sale of copper and copper products, including copper cathode and copper rod. As by-products of it copper operations, the group also processes, refines and sells zinc, gold and silver.

            Red = 25 day moving average.           Green = 200 day moving average.

SALES PER ACTIVITY (Data as of 31/12/2005)

Copper operations & others: 100%

The Times also comment:

KAZAKHMYS, the copper miner and smelter, produced an excellent set of numbers yesterday. Revenues rose by

90 per cent and profits benefiting from enhanced economies of scale and a bigger contribution from the sale of gold and zinc by-products climbed even faster. At the pre-tax level they were 166 per cent higher at $956 million (508 million).

The company also turned the profits into hard cash. Nearly 350 million flowed into the companys coffers in the half.

Yet while results are impressive, there are concerns. First among these is the thought that most of the rise in sales and profits came about because of a rise in the price of copper. If the price of copper keeps rising, Kazakhmys will continue to post stunning financial results. But the company will soon suffer if the price of the metal starts to decline. It might.

Shares in the company would be a more enticing prospect if it was digging more ore out of the ground. Increased production volumes would protect Kazakhmys profits if copper prices fell. The company does have some good-looking assets under development its Boschekul venture is one but at present these are better classified as exciting prospects than guaranteed sources of ore.

That said, the cash collected by Kazakhmys courtesy of the sky-high price of copper furnishes the company with money to acquire new reserves and diversify away from copper. Yet the price of reserves moves in relation to the price of traded commodities. It is easier to talk about acquiring reserves than finding good ones on sale at reasonable prices.

The companys decision to spend on acquisitions also reduces the amount in the kitty available for distribution as dividends. Kazakhmys is paying divis, but the 1.7 per cent yield may be insufficient to protect the shares if the world price of copper weakens markedly.

Meanwhile, public investors, who own only 30 per cent of the stock, are in an uncomfortable minority postion. At the same time, a lock-in clause preventing sales by holders of the other 70 per cent expires in October. The market could soon be awash with stock. Sell.

Ian

The Times - September 28, 2006

Kazakhmys's departing chief sells shares for nearly 500m - By David Robertson


YONG KEU CHA, the chief executive of the London-listed miner Kazakhmys, has sold shares in the company worth nearly 500 million believed to be the largest sale by a director.

The South Korean-born businessman is stepping down as head of Kazakhmys at the end of the year and is taking advantage of a strong share price to liquidate some of his holding now. He sold 2 per cent of Kazakhmyss stock, worth about 102 million, into the London market yesterday, and will sell a further 2 per cent to investors based in Kazakhstan when the company lists in its domestic market later this year.

The chief executive has sold a further 7.1 per cent, worth 383 million, to Vladimir Kim, Kazakhmyss chairman, who is to become chief executive. His remaining 4.5 per cent will not be sold until at least the end of the year, under an agreement with Kazakhmyss bankers.

Kazakhmys last night insisted that the sale was good for investors because it increased the FTSE 100 companys free float to 33 per cent. However, the size of the directors sale surprised the City. The 484 million of stock sold to the market and to Mr Kim is thought to be the biggest sale by a director in London. The shares rose 18p to 11.55.

In another transaction declared yesterday, Mr Kim gave 2.5 per cent of Kazakhmys stock, worth 135 million, to Vladimir Ni, its chairman in Kazakhstan. This gift was, the group said, a reward for Mr Nis longstanding business relationship with Mr Kim.

chart quite reasonable so have switched from VED to here



red = 25 dma
green = 200 dma

possible resistance about this level; shall be watching carefully

whats the future of this company.

Currently being absolutly hammered along with potential partner ENRC.

Is this short sellers having fun or is there a problem?

KAZ is hammered...now 630p.

commodity prices have been taking a bashing for the last 6/8 weeks or more ..... if you think KAZ has fared badly, take a look at XTA!

In terms of percentage fall, KAZ is more serious.

KAZ is hammered to 480p today.

Fully aware. ENRC the same.

Mind you, XTA only down 11%!!

now down 23%

Kazakhstan shares are showing more weakness than others.

down 30%

well it is a miner after all ..... sorry for the gallows humour

Prepare for another massacre here in the next couple of days.

What a bright spark you are.

And what do you base your opinion on?

Thank you, you are as bright as me. I see KAZ at 200p.

Looks like merger talks did not materialise...wow



LONDON, Oct 17 (Reuters) - Kazakh mining firm Kazakhmys said on Friday it had halted negotiations about a possible merger, but gave no details.

In July, sources close to the discussions told Reuters that Russia's Metalloinvest was Kazakhmys' suitor and that a main driver for its interest in the Kazakh firm was as an alternative to its own plan to list its shares in London.

On Oct. 2, an official with Metalloinvest's holding company was quoted as saying the steel and iron ore firm had dropped plans for an initial public share offering this year due to market conditions.

'Discussions regarding a possible combination with a third party, first announced on 14 July 2008, have ended,' a Kazakhmys statement said.

Justyi, I think you are wrong with saying KAZ is going down. The failed merger has turned the fate of KAZ. It is on the rise now. BUY at 360p.