Kazakhmys Plc, Kazakhstan’s biggest copper producer, rose the most in two weeks in London trading after signing a $1.5 billion loan accord with China Development Bank Corp. to finance its Aktogay mine.
Kazakhmys climbed 27 pence, or 3.2 percent, to close at 874 pence, the biggest one-day gain since Dec. 2. The agreement 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 got a $2.7 billion loan from the Chinese bank in December 2009 to develop the Bozshakol venture and other “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.”