Kazakh Gold Posts Disappointing 1H07 IFRS Results
OREANDA-NEWS. KazakhGold announced its 1H07 IFRS results, which were unexpectedly much lower than anticipated. EBITDA was $12.4mn (down 66% h-o-h), while net profit dropped 75% h-o-h to $3.9mn. The main reasons for the poor performance were a decrease in output and the lower average grade, resulting in a lower EBITDA margin. Given 1H07 output usually contributes about 40% of annual output, Aton Capital's experts expect the company to produce about 205,000oz in 2007F, significantly lower than the current forecast of 257,612oz. "We see the results as negative for the stock and intend to revise our financial model to reflect the new numbers. We currently rate KazakhGold Hold, with a 12-month target price of $25.60," the experts summarize.
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