LONDON (ShareCast) - Shares in Kazakhmys advanced after Goldman Sachs started coverage on the Kazakh miner with a ‘buy’ recommendation and a 2,033p target price, citing strong copper fundamentals.
The broker also said that Kazakhmys would be well placed to benefit from supply disruptions from South America.
Copper supplies in the continent are frequently disrupted by strikes. Yesterday workers at three mining operations in Peru ended a three-day strike that began on June 30 and sent prices for the red metal soaring.
Kazakhmys said in April that copper output in the first quarter of 2008 was in line with expectations given the severe winter conditions.
Copper ore output rose 7% on the preceding quarter to 8.3m, as new mines came on stream.
Own cathode production of 76 karats was 10% lower than a year earlier, reflecting the shut-down at the Balkhash smelter for scheduled maintenance as well as the harsh winter weather.
“The outlook for production in 2008 remains in line with the guidance given at the time of our 2007 full year results,” said Oleg Novachuk, chief executive officer.
“Global copper demand appears to be strong with limited new supply being introduced globally to meet this demand,” Novachuk added.
-45.25p
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