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%

Goes xd on the 26th if anyone is interested !!!

another share (like JKX) which is top class for those who like commodity stocks. However, as just posted for JKS, i would not be surprised to some consolidation for a while .... the recent rise has been stratospheric.

Why is this falling, when the like of Antofagasta are flying?
Is something going on behind the screens?
Jas

14 August 2006 - Brian O'Connor, Investment Extra, Daily Mail

It's the Kaz way or the highway


IT is a long time since the Footsie 100 was a roll call of British industry. But even in an age of globalisation, miner Kazakhmys is one of its more exotic members.

When it floated in London ten months ago, it was the first company from any former Soviet state to win a full UK listing.

The world's tenth-largest miner and smelter of copper, with 65,000 staff, it joined the top 100 index in December.

When the Soviet Union broke up, Kazakhstan was sure to come to the fore. Stretching from the Caspian Sea to the Chinese border, it has just 15m people, but vast reserves of oil, gas, chrome, gold and uranium. Its president Nursultan Nazarbayev, in power since 1989, keeps an iron grip, but has welcomed foreign investors.

When Kazakhmys ('mys' means copper and is pronounced moose) floated, analysts dismissed its price range of up to 545p as 'unjustifiable'. But the shares hit 614p on day one. Now they are 1203p, valuing Kaz at 5.6bn. Broker Bear Stearns has set a target price of 1650p.

It has two large mining complexes at Balkhash and Zhezkazgan, each with its own smelter. It owns a power plant and two coal mines to supply it. It emerged from the Soviet era in poor shape, and Korea's Samsung came in to modernise it, but sold out in 2002.

Today chairman Vladimir Kim, 45, owns 40%, worth 2.2bn. Chief executive Yong Keu Cha and finance director Oleg Novachuk own another 26%. Western investors led by Standard Life, Barclays, Merrill Lynch and Scottish Widows own 20%. So, in contrast to most top 100 stocks, City funds do not call the shots.

Three of the seven strong board are Westerners; Lord Renwick of Clifton, David Munro and James Rutland, the 'SID' (senior independent director). Renwick and Munro had links with BHP Billiton, which is a role model for Kaz. A fourth non-executive may join.

Some governance issues have surfaced. At the last agm, fund manager F&C asked why Kaz's staff pension fund is invested in its own shares - not UK best practice. Renwick replied: 'We do have to respect traditions elsewhere'.

In March, chairman Kim took a 25% personal stake in ENRC, owner of Eurasia Natural Resources, for 395m. Its chrome, iron and alumina make it a natural diversification for Kaz. It has an option to buy Kim's stake during 2007 - at a 10% premium, plus costs. So he could make 39m by selling on to his own company.

Kaz says it could not have bought stake itself without due diligence, and any deal with Kim will independently valued. But this you that if you buy the shares, need to get used to the Kazakh of doing business.

There are other worries in the region. Newmont Mining, in Uzbekistan, got a demand for 26m back taxes last week. The local representative of Oxus Gold, in Kyrgyzstan, got shot. But Kazakhstan is much more stable, and Kaz is its shop window in the Footsie.

If the risks are clear, so are the rewards. In four years to 2005, sales soared from 430m to 1.4bn, pretax profits from 136m to 446m. The price has doubled since the float. In the May market shake-out, it slumped from 13 to 9, but soon bounced back.

This is an attempt to describe Kazakhmys, rather than tip it. Brokers think it could make more than 600m this year, for earnings per share of 155p, putting the shares at only 7.7 times. This looks cheap, but depends on metal prices staying high. The yield is a modest 1.9%, but could rise. It is well placed to pick up acquisitions in Kazakhstan. Eurasia, which could cost up to 2bn, may be the first of several, giving Kaz plenty of room for growth. Any deals need to be transparent.

UK investors will not have much say, so much depends on how Kim treats them. So far, they have done pretty well.

http://www.thebusinessonline.com/Stories.aspx?StoryId=55E56231-731C-4857-A9CB-9FFCAF7B6B22&page=0

A nice write up in tomorrow's Sunday Business !!!!

Ian

just be aware that the copper price is dropping as are those for hard commodities in general ...... copper is now down from $35k to about $31.5k a tonne, but is certainly unlikely to go back to the $8k that was seen perhaps 12/18 months ago .... $17k is probably around the bottom we shall see, but that may be a long way off, depending on how world economies perform, especially those of China and India

Hmm! what to do now? ...... fantastic results with similarly bullish forecast ..... this morning's reflection is a very small downturn in line with other miners ..... Does one get on board this heavyweight now, or wait for further correction of the copper price and thus a lower sp?

The Questor column - By James Quinn - (Filed: 20/09/2006)

Time to wait for some better news after management hole opens up in the ground
Questor says Hold


No matter how hard the spinners spin, there is no news like bad news, even if it is not quite that bad, and so the surprise departure of Kazakhmys' chief exective YK Cha largely overshadowed a record set of interim results for the copper miner.

Cha's timing could have been better, particularly as the market had been hoping these results would kick-start a re-rating of the shares, which currently trade at a modest seven times current year earnings.

One of the main reason's for yesterday's price fall was the fact that Cha has led the company for a decade, starting from when it struggled to pay its wage bill in the mid-1990s through to joining the FTSE100 last October. Of course the market is surprised Cha is going, but it is more concerned he might sell his 15.6pc stake in the business. Of course, Cha is not cutting loose entirely, and his special skill, marketing copper products to big industrial businesses in China, will still be exploited through the time-honoured role of becoming a 'special adviser to the board.'

Maybe so, but Cha's full time, hands-on leadership should not be overlooked and a definite management gap has emerged. It was not just his commercial ties that Kazakhmys benefited from, but also his basic management skills. Kazakhmys has thus far escaped, for example, the industrial action that has blighted its FTSE 100 mining competitors in mines around the world. Kazakhmys' share price has more than doubled since last October's flotation, a solid return for investors who risked buying into an ex-Soviet turnaround story.

But many market watchers are convinced the share price still has legs. Clearly, the central Asian miner's profits are highly leveraged to the copper price, which has risen dramatically over the last year on the back of demand from China and supply worries. That demand shows few signs of abating and any slack might well be picked up by growth in India.

But profitability being so reliant on the copper price can be a curse as we as a blessing. For that very reason, Kazakhmys has long been scouring the plains of Kazakhstan to hopefully acquire miners of other metals that would diversify its production base. It was disappointing therefore not to hear more concrete news about how it was going to spend its cash pile, which topped $1.5bn (0.8bn) by the end of August. Unlike other big-league miners, Kazakhmys has no intention of paying a special dividend.

In April, Questor advised shareholders in Kazakhmys to sit tight and hold, since when the shares are virtually unchanged. Six months on, canny investors should continue to hold fire until the company has some better news.

Daily Telegraph - 20 September 2006


Kazakhmys fell 56p to 1,210p after news that its chief executive, Y K Cha, plans to step down sparked fears that a big chunk of his stake in the company could soon find itself on the market. He owns 15.6 per cent of the Kazakhstan copper miner. The lock-up governing his stake expires on 7 October. Kazakhmys also posted better-than-expected interim results. Earnings before interest, tax, depreciation and amortisation soared 124 per cent to more than $1bn (530m) for the six months to the end of June.

thanks for that post Dai .... and easy decision now, especially with copper trending downwards at least for the time being

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.