Koza Altin Isletmeleri AS (KOZAL) headed for a 16-month low after Deutsche Bank AG cut its price estimate for the Turkish gold miner, citing the impact of the commodity’s deteriorating outlook on earnings.
The shares of Koza slumped 2.4 percent to 29 liras by 4:07 p.m. in Istanbul, set for the lowest close since January 2012. About 2.3 million shares were traded, or 2.8 times the stock’s three-month daily average volume, according to data compiled by Bloomberg. Gold for immediate delivery fell 1.6 percent to $1,371 an ounce, extending its year-to-date decline to 18 percent.
This year may “mark the first year that gold will post negative annual returns since 2000,” Deutsche Bank analysts Anna Mulholland and Aktug Baloglu said in a note dated May 20, lowering their 2013 price estimate for the commodity by 6 percent to $1,533. Adjusting for the lower precious metal prices, the analysts cut their full-year earnings estimate for Koza by 9 percent in 2013, 25 percent in 2014 and 35 percent for 2015.
Koza said earlier this month its first-quarter net income dropped 42 percent, missing analyst estimates, as it was affected by declining gold prices. The company operates six gold mines across Turkey and owns 51 operating licenses, its financial statement shows. Koza’s shares have plummeted 33 percent this year, compared with a gain of 16 percent in the benchmark stock index.
Deutsche cut Koza’s 12-month price estimate on the stock by 25 percent to 32.6 liras, maintaining its hold recommendation. Thirteen analysts recommend investors buy the shares, while six, excluding Deutsche, say hold, data compiled by Bloomberg show.
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