Kazakhmys Rises Most in Two Weeks in London on $1.5 Billion Loan
Kazakhmys Plc (KAZ), Kazakhstan’s biggest copper producer, gained the most in two weeks in London trading after signing a $1.5 billion loan accord with China Development Bank Corp. to finance the producer’s Aktogay mine.
Kazakhmys rose as much as 4.6 percent, the most since Dec. 2. The accord signed today gives Kazakhmys access to the funds for three years after completing the Aktogay feasibility study by the end of 2012, the company said in a statement.
The producer plans to raise output by about 60 percent to 500,000 metric tons in 2015 by developing the Bozshakol and Aktogay mines. The company secured a $2.7 billion loan from the Chinese bank in December 2009 to develop the Bozshakol mine and fund some mid-sized projects, it said in the statement.
“This stock looks markedly undervalued in relation to its peers,” Louise Collinge, a London-based analyst at Evolution Securities Ltd., wrote in a note today. ``We reiterate our `add' recommendation and our 1,260-pence target price.''
Kazakhmys rose 4.3 percent to 883 pence by 10:10 a.m. in London, paring its loss for the year to 45 percent.
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