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Aton, Moskau KazakhGold. Trading update for 4Q06 disappoints KazakhGold yesterday reported 4Q06 output of 45,986oz (down 41% q-o-q) and 2006 output of 219,853oz, up 147% y-o-y, but 7% below our forecast of 236,000oz. The dramatic fall in 4Q06 output was largely due to the unexpectedly cold weather in November and December, which hindered heap leaching operations at Aksu and Bestobe. The company released no data on cash costs. Growth in 2006 was significant, but below our expectations Key operational data Ore, 000 tons Grade, g/t Implied Recovery, % Gold, 000oz Total mined 4,230 1.90 259 Processed at CIP plants 1,760 2.13 79% 95 Processed by flotation 61 7.76 102% 15 Processed by heap leaching 2,860 1.66 71% 109 Total output 4,681 1.92 76% 220 Source: Company data The company said technical upgrades are under way at all its mines in order to optimize production costs. The company has also engaged project managers to advise on the construction of new CIP plants, which would enable KazakhGold to increase its output. The results of the reclassification of gold reserves and resources to JORC standards, which were expected late last year, have been pushed back to end-1Q07. The company plans to hold a conference call to discuss the trading update on Thursday at 12.30 Moscow time (09.30 London, 04.30 New York). To access the call please dial +44 (0) 20 7162 9961; the password is KazakhGold. We view the reported results as negative, as they illustrate the ineffectiveness of heap leaching technology in winter and poor execution by the company. We plan to adjust our model to account for the smaller than expected output in 2006 and may refine our future forecasts as well. However, we still see KazakhGold as a growth story with very large resources, and are encouraged by the planned increase in CIP processing to 70% of total processing. Our recommendation on the company is Buy, with an end-2007 fair value of $35.5. |
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| aus der Diskussion: | Minenaktie mit erheblichem Potential in 2007 ---- Kazakhgold ---- |
| Autor (Datum des Eintrages): | Asynchronmaschine (15.02.07 09:58:01) |
| Beitrag: | 34 von 343 (ID:27717134) |
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