Analysts believe in KGHM. The market is zbilansuje – Banker

DM PKO BP analysts lowered their price target on shares of KGHM to 136 zł from 151 zł maintaining “buy” recommendation. Experts believe that the copper market within two years to zbilansuje.

 
 
 
 

Analysts believe that attractive investment and increase production KGHM these provide the basis for strong growth.

 

– KGHM 2020. Equivalent copper production will increase by more than 50% of 661 thousand. tons to 1 million tons. The company invests 28 billion PLN primarily in a portfolio of attractive projects, such as the Sierra Gorda phase II and oxide ore, Victoria Afton-Ajax or – analysts say.

 
 

The flagship project of the driving performance of the company is to be the Sierra Gorda. Analysts believe that in 2016 the project will run at full speed.

 

– in 2015. Production of the Sierra Gorda flagship project will took on momentum and we expect that the volume of copper will be 100 thousand. tons, and molybdenum than 40 million lb. In the first year, there is always a start-up operational risk, but over time will diminish its importance. We believe that in 2016. Sierra Gorda fully developed wings – experts expect.

 
 

In the opinion of analysts DM PKO BP this development and low levels of debt will translate into an attractive dividend yield, which on average will reach 3.5% by 2020. It is of course smaller than in the past, but still above industry companies (average 3.2%).

 
 

KGHM’s attention will also be conducive to the situation on the copper market. Analysts say that the times of oversupply slowly fading into oblivion, and within the next two years the situation has zbilansuje.

 

– The 2015-2017 are planned to donate a new mine capacity of 4.1 million tonnes (21% of current). However, be aware of the delays of new projects and depletion potential and current disruption in the production of power. On the demand side the unknown is the scale of global growth and SRB purchases. In our opinion, for the next two years the copper market will be close to balance, and from 2017-2018 should appear in the structural deficit – analysts point out.

 

The report was prepared on March 30, today reached the broad market.

 

Opinion DM PKO BP analysts differ slightly from the majority of recommendations issued in This year, for the copper potentate. Among the 10 reports of up to 4 includes a recommendation hold, after 3 recommend selling and buying. The discrepancy can be seen also in the target price, 136 zł recommended by analysts DM PKO BP is a variant of the most optimistic. This year, the most pessimistic analysts showed DI Investors who in January appointed a target price of 101 zł. On Tuesday, just before 11:00 per share of KGHM had to pay 120 zł.
 

/ lv