Koza Altin Isletmeleri AS slumped to the lowest level in more than a year 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 3 percent to 28.8 liras at the close in Istanbul, the lowest close since January 2012. About 2.4 million shares were traded, almost three times the stock’s three-month daily average volume, according to data compiled by Bloomberg. Gold futures for June delivery fell 1.4 percent to $1,364.70 an ounce at 10:19 a.m. on the Comex in New York.
This year may “mark the first year that gold will post negative annual returns since 2000,” Deutsche Bank analysts Anna Mulholland in Johannesburg and Aktug Baloglu in Istanbul said in a note dated May 20, lowering their 2013 price estimate for the commodity by 6 percent to $1,533.
Koza’s shares have plummeted 33 percent this year, compared with a gain of 17 percent in the benchmark stock index. Adjusting for the lower precious metal prices, the analysts cut their full-year earnings estimates for Koza by 9 percent in 2013, 25 percent in 2014 and 35 percent for 2015. Gold has dropped 18 percent this year.
Koza said earlier this month its first-quarter net income retreated 42 percent, missing analyst estimates, as it was affected by the declining gold prices. The company operates six gold mines across Turkey and owns 51 operating licenses, its financial statement shows.
Deutsche Bank cut Koza’s 12-month price estimate by 25 percent to 32.6 liras, maintaining its hold recommendation. Thirteen analysts recommend investors buy the shares, while seven including Deutsche Bank say hold, data compiled by Bloomberg show.