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%

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Kazakh government had agreed to reduce tax rates on some older assets which it plans to spin off in a move seen as a sign of support to the company's restructuring plan.


doesn't sound to me that the recovery here will be long-lived
however, I've been wrong in everything else of late so ....


btw, chart above say +27p today which is nonsense

think thats probably to do with the bar chart, but your right has been creeping up over last few days.,.

Liberum note today:
"Kazakhmys have now entered into a definitive agreements to transfer mature assets to Vladimir Kim's Cuprum Holding with an effective working capital payment of $240m (expectations between $300-$400m). Given the lower liquidity concerns and the more certain outlook (we assume minority shareholder approval is given), the investibility of the stock is significantly improved.
The working capital payment comprises of $150m in cash, $80m of unspent sustaining capex, and $10m of tax refunds. The total of $240m compares to $770m of negative free cash flow we estimate that the disposal assets would have generated over the next three years at current prices. It is evident from the differences in gross revenue per tonne that the large, low grade deposits in Zhezkazgan and Central regions are likely to be cash destructive at today’s prices and are being cross subsidised by the small more profitable mines in the Eastern regions.
Disposal of the Zhezkazgan and central regions remove 61% of copper equivalent production, but 87% of the throughput. Using very rough assumptions on uniform throughput costs, EBITDA margins in 2012 would have been 79% instead of 35% at the mining operations without those mines. Processing and auxillary services will be provided on arm's length and cost plus basis (typically 5-10%). Smelting services will be charged at 2014 TC/RC of $124/t and 12¢/lb,
The effective economic separation is stated as the 31 July 2014 and proposed shareholder vote for 15 August 2014. Our expectation is for the minority shareholders will vote the transaction through, given the lack of alternatives. Licensing and regulatory approvals will then be needed and expected completion by Q4 2014."

UPDATE 2-Copper miner Kazakhmys to split in two to boost performance
Wed, 23rd Jul 2014 13:21

* Shares jump 10 pct after announcement

* Production costs post-demerger to fall to 120-140 cents/lb -company


* Working capital payment lower than expected

* Demerged mines could get more support from government (Adds comments from company and analyst, adds details)

By Silvia Antonioli

LONDON, July 23 (Reuters) - Copper producer Kazakhmys will transfer some of its less-profitable assets to a private company owned by two of its shareholders as the company is broken up in an attempt to improve its performance.

The Kazakh mining company has been grappling with rising production costs, falling copper grades and weaker prices in the last few years and proposed in February to split the company in two.

It said on Wednesday it had entered into a definitive agreement to transfer its older mines and processing facilities in the Zhezkazgan and central regions to Cuprum Holding - a new vehicle owned by Kazakhmys' largest shareholder and former chairman Vladimir Kim and by the company's chief operating officer Eduard Ogay.

London-listed Kazakhmys would be renamed KAZ Minerals after the demerger. It has agreed to pay Cuprum about $240 million so the private firm can operate the assets it will receive. That figure was below analysts' expectations of $300-400 million.

"Given the lower liquidity concerns and the more certain outlook, the investibility of the stock is significantly improved," Liberum analysts said in a note.

Kazakhmys shares jumped almost 10 percent after the announcement and were up 7.5 percent by 1041 GMT.

"With the spin-off you create one group of assets that will run probably better within a private entity, where you don't have the pressure of returning cash to shareholders," said Kazakhmys head of investor relations John Smelt.

"A private firm can be run slightly differently, perhaps getting more government support and do projects that create employment but don't necessarily make much money."

TWO BETTER THAN ONE

In June the Kazakh government agreed to reduce tax rates on Kazakhmys' older assets that are being spun off, in a move seen as a sign of support for the company's restructuring plan.

A spin-off of the more capital and labour-intensive assets represents a more acceptable option for the government than the shutdown of some operations and consequent job cuts, analysts have said.

Following the demerger Kazakhmys plans to focus on its assets in the east region of the country and the Bozymchak mine in Kyrgyzstan, and on its Aktogay and Koksay growth projects, to become an initially smaller but more cost-efficient producer.

Thanks to such growth projects, it plans to increase its output 32 percent by 2018, compared with last year, to reach production of about 350,000 tonnes of copper equivalent, mostly from open-pit mines.

After the demerger, Kazakhmys' production costs would fall to about 120-140 cents per pound of copper equivalent from 220 cents for the group last year, it said.

The transaction is conditional on shareholders' approval and regulatory consent. Kazakhmys expects the split to be concluded by the end of the year.

Kim has indicated he intends to keep his stake in Kazakhmys once the demerger is completed. Ogay - who has a stake of less than 1 percent in the company - did not specify whether he would keep his holding, but Kazakhmys said he would be leaving his executive role to take a management job at Cuprum. (Editing by Erica Billingham and Pravin Char)

just noticed .... sp now challenging 200 dma ..... worth keeping an eye on especially if copper improves

==============

very curious
copper price has been drifting south but warehouse stocks look low (Kitco)

why the jump in Kaz sp?

Big faller Wednesday due to falling copper prices.

Suspect it has further to fall.

Watching this too mitzy

good call i think and ANTO would be another candidate

copper
an analysts thoughts this morning for what their worth ....

The biggest loser was copper, which is often interpreted as a red flag for the markets regarding a deflationary environment, and in turn is bearish for gold prices. However, currently trading at $1,228, price action is being supported by an intermediate area of support at $1,224. If this is held we may see a third attempt at rallying through $1,244 – a move supported by gold’s relative strength index at 60.6.

Should its intermediate downside of $1,224 fail, the next clear downside target could come into play at gold’s 200-period moving average at $1,218.

On a roll last few days, things looking up.,.

this is probably the reason for the recovery here, though i don't think i wish to venture down the road .....


from today's FT

Bearish bets on copper begin to fade
Chinese copper speculators appear to be heading for the exit

another 50p and i could be out b/e???

KAZ in free fall.............. up wards.,. going well today.

http://www.businessinsider.com/copper-prices-will-increase-due-to-green-energy-2015-6?IR=T

Falling back to 150p.

Up 10% today when all other miners are getting hammered ?

This could be the reason .

BUZZ-Kaz Minerals: Weakness in Kazakh's tenge boosts stock
Wed, 19th Aug 2015 10:13
** Copper miner's shares up 8.4 pct, top midcap gainer, after the Kazakh tenge weakens against the dollar

** Kazakhstan's tenge currency was trading at 197.07-197.12 to the dollar on the interbank market on Wednesday

StockMarketWire.com
KAZ Minerals' underlying profit fell to $2m in the six months to the end of June - down from $71m a year ago.

Revenues fell to $341m from $425m and EBITDA excluding special items dropped to $88m from $195m. Thew group posts a pre-tax profit of $2m compared with a loss of $104m a year ago.

Chief executive Oleg Novachuk said: "Bozshakol and Aktogay progressed well in the first half of 2015, with pre-production mining activities underway and Aktogay on course for initial copper cathode production from oxide ore later this year.

"At Bozshakol, our preliminary assessment following the fire that occurred in the concentrator building on 14 August is that commissioning is currently expected to be delayed to the first quarter of 2016, with no change to the capital budget.

"As a result of the East Region's solid operational performance and cost control measures we are on track to achieve our full year copper production guidance at a reduced gross cash cost."