BofA stays at 'underperform' on Kaz Minerals

Analysts at Bank of America reiterated their 'underperform' recommendation and 450.0p target price on shares of Kaz Minerals following the firm's second quarter results.

Driving their decision were concerns around the 'project risk' associated with the outfit's Baimskaya Project and the company's reliance on the Russian state amid the Covid-19 crisis.

Just the day before, the Kazhakstan-focused copper miner had posted an 8% fall in second quarter net income to reach $197m, which was 19% below the analyst consensus.

Adverse foreign exchange movements accounted for roughly half of the 'miss' against analysts' estimates.

Kaz Minerals also upped its projections for 2020 capital expenditures related to Baimskaya, although the Bankable Feasibility study for the project was expected.

"Should the COVID-19 outbreak continue in Kazakhstan, we see further risks to the timely completion of the Baimskaya BFS, which is the prerequisite for sharing project risks with a partner. Without a partner, KAZ may continue carry the burden of the US$7bn project on its own, a risky venture, in our view."