Report
Erdem Hafizoglu
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BGC Partners: KOZA ALTIN (BUY Maintained, 60% upside)

• BUY maintained with a 60% upside potential… We updated our valuation for Koza Altin; a) excluding Sogut from reserves and resources, b) raising our 2019 production and sales volume estimate to 300k oz (guidance 300-320k oz), c) including 4Q18 financials and our latest macro assumptions, d) raising our cash cost estimate from US$500/oz to US$550/oz in the model staying more on the conservative side (although an improvement in volumes/grades is likely to push cash costs below US$500/oz). With the new set of assumptions, we decrease our TP for the company from TL79.3/share to TL70.8/share (down by 11%) which still indicates an attractive 60% TL based return. Koza Altin trades at 5.3x 2019E P/E and 3.3x 2019E EV/EBITDA, at 55% discount to our peer set.
Underlying
Koza Altin Isletmeleri AS

Koza Altin Isletmeleri AS. Koza Altin Isletmeleri AS is a Turkey-based company established to explore and operate gold mines in Turkey. The Company had a gold production of approximately 338,182 ounces in the 12 months of 2012. As at 31 December 2012, it had 53 operating licenses and 406 exploration licenses throughout Turkey in the Aegean and Marmara regions, the Black Sea region and Central and Eastern Anatolia. The Company owns four operating mines: an underground mine at Ovacik, a mine at Mastra & Cukuralan where it utilizes both underground and open pit mining methods, a mine in Cukuralan where it utilizes both underground and open pit mining methods and an open pit mine at Kaymaz.

Provider
BGC Partners
BGC Partners

BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.

We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:

  • Mergers & Acquisitions
  • Equity Capital Markets
  • Debt Finance & Advisory

Analysts
Erdem Hafizoglu

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