LSE:KAZ

Stock Analysis Report

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Executive Summary

KAZ Minerals PLC, together with its subsidiaries, engages in mining and processing copper and other metals primarily in Kazakhstan and Kyrgyzstan.


Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

How has KAZ Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KAZ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.1%

KAZ

2.9%

GB Metals and Mining

2.0%

GB Market


1 Year Return

-7.1%

KAZ

-5.2%

GB Metals and Mining

-12.8%

GB Market

Return vs Industry: KAZ underperformed the UK Metals and Mining industry which returned -5.1% over the past year.

Return vs Market: KAZ exceeded the UK Market which returned -12.4% over the past year.


Shareholder returns

KAZIndustryMarket
7 Day6.1%2.9%2.0%
30 Day14.3%13.3%5.7%
90 Day15.6%5.4%-8.2%
1 Year-4.8%-7.1%2.1%-5.2%-8.6%-12.8%
3 Year-0.2%-4.2%40.3%16.7%-6.2%-17.6%
5 Year97.3%89.5%70.9%31.4%12.7%-12.5%

Price Volatility Vs. Market

How volatile is KAZ Minerals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KAZ Minerals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KAZ (£4.74) is trading below our estimate of fair value (£15.1)

Significantly Below Fair Value: KAZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KAZ is good value based on its PE Ratio (4.8x) compared to the Metals and Mining industry average (7.7x).

PE vs Market: KAZ is good value based on its PE Ratio (4.8x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: KAZ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KAZ is overvalued based on its PB Ratio (1.3x) compared to the GB Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is KAZ Minerals forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KAZ's earnings are forecast to decline over the next 3 years (-0.9% per year).

Earnings vs Market: KAZ's earnings are forecast to decline over the next 3 years (-0.9% per year).

High Growth Earnings: KAZ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KAZ's revenue (4.6% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: KAZ's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KAZ's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has KAZ Minerals performed over the past 5 years?

54.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KAZ has a high level of non-cash earnings.

Growing Profit Margin: KAZ's current net profit margins (25.2%) are higher than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: KAZ has become profitable over the past 5 years, growing earnings by 54% per year.

Accelerating Growth: KAZ's earnings growth over the past year (12%) is below its 5-year average (54% per year).

Earnings vs Industry: KAZ earnings growth over the past year (12%) exceeded the Metals and Mining industry 9.8%.


Return on Equity

High ROE: Whilst KAZ's Return on Equity (26.26%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is KAZ Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: KAZ's short term assets ($1.5B) exceed its short term liabilities ($926.0M).

Long Term Liabilities: KAZ's short term assets ($1.5B) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: KAZ's debt to equity ratio (152.3%) is considered high.

Reducing Debt: KAZ's debt to equity ratio has increased from 147% to 152.3% over the past 5 years.

Debt Coverage: KAZ's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: KAZ's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Next Steps

Dividend

What is KAZ Minerals's current dividend yield, its reliability and sustainability?

2.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KAZ's dividend (2.05%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: KAZ's dividend (2.05%) is low compared to the top 25% of dividend payers in the UK market (5.67%).


Stability and Growth of Payments

Stable Dividend: KAZ's dividend payments have been volatile in the past 10 years.

Growing Dividend: KAZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.9%), KAZ's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KAZ's dividends in 3 years are forecast to be thoroughly covered by earnings (7.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Andrew Southam (41yo)

2.33yrs

Tenure

US$2,576,000

Compensation

Mr. Andrew Southam has been the Chief Financial Officer of KAZ Minerals PLC since May 17, 2013. Mr. Southam served as the Deputy Chief Financial Officer of Kazakhmys PLC from January 2012 to May 17, 2013.  ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD3.18M) is above average for companies of similar size in the UK market ($USD2.39M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Southam
CEO & Director2.33yrsUS$2.58m0.14% $3.2m
Vladimir Kim
President & Non-Executive Director16.33yrsUS$454.00k31.6% $707.3m
John Hadfield
Chief Financial Officer2.33yrsno datano data
Mark Anderson
Chief Operating Officer3.33yrsno datano data
Chris Bucknall
Head of Investors Relations5.58yrsno datano data
John Smelt
Head of Corporate Communications12.83yrsno datano data
Niel Cahill
Head of European & USA Salesno datano datano data
Maksut Zhapabayev
Head of Corporate Communications for Almatyno datano datano data
Michael Peen
Chief Commercial Officer5.33yrsno datano data
Susanna Freeman
Company Secretary4.08yrsno datano data

4.2yrs

Average Tenure

58yo

Average Age

Experienced Management: KAZ's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Southam
CEO & Director2.33yrsUS$2.58m0.14% $3.2m
Vladimir Kim
President & Non-Executive Director16.33yrsUS$454.00k31.6% $707.3m
Oleg Novachuk
Chairman of the Board2.33yrsUS$4.40m7.78% $174.2m
Charles Hugh Watson
Independent Non-Executive Director9.33yrsUS$117.00k0.0029% $65.3k
John MacKenzie
Independent Non-Executive Director5.17yrsUS$113.00k0.0011% $23.7k
Lynda Armstrong
Independent Non-Executive Director6.58yrsUS$115.00k0.0018% $40.3k
Michael Lynch-Bell
Deputy Chair & Senior Independent Director2.33yrsUS$225.00k0.0025% $56.8k
Alison Baker
Independent Non-Executive Director2.58yrsUS$102.00k0.00074% $16.6k

5.3yrs

Average Tenure

54yo

Average Age

Experienced Board: KAZ's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

KAZ Minerals PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KAZ Minerals PLC
  • Ticker: KAZ
  • Exchange: LSE
  • Founded: 1930
  • Industry: Copper
  • Sector: Materials
  • Market Cap: UK£2.238b
  • Shares outstanding: 472.44m
  • Website: https://www.kazminerals.com

Number of Employees


Location

  • KAZ Minerals PLC
  • Cardinal Place
  • 6th Floor
  • London
  • Greater London
  • SW1E 5JL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KAZLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2005
KQ1DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2005
KZMY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2005
GB_KZMSKAS (Kazakhstan Stock Exchange)YesOrdinary SharesKZKZTOct 2005
KAZLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2005
KZMY.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

KAZ Minerals PLC, together with its subsidiaries, engages in mining and processing copper and other metals primarily in Kazakhstan and Kyrgyzstan. It operates through Bozshakol, Aktogay, and East Region and Bozymchak segments. The company operates the Aktogay and Bozshakol open pit copper mines in the east region and Pavlodar region of Kazakhstan; three underground mines and in the east region of Kazakhstan; and the Bozymchak copper-gold mine in Kyrgyzstan. It also develops greenfield metal deposits and processing facilities; and produces and sells various by-products, such as gold, silver, molybdenum, and zinc. In addition, the company supplies and distributes heat, water, and electricity; and offers construction services. The company was formerly known as Kazakhmys PLC and changed its name to KAZ Minerals PLC in October 2014. KAZ Minerals PLC was founded in 1930 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 21:58
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.