JAN. 5 (The Conway Bulletin) — KAZ Minerals, the Kazakhstan-focused copper producer, was the biggest riser on the FTSE 350, according to the Times newspaper. It nearly doubled its share price in 2017 as the stock market bet on the price of copper.

The KAZ Minerals success story was something of an anomaly for the region. Central Asia Metals, its Kazakhstan metal producer bedfellow, barely broke even. The market judged its buy-up of a Macedonian zinc miner earlier in the year to be the wrong move.

And Centerra Gold, the Toronto-listed miner, also failed to shift significantly despite apparently making peace with the authorities in Kyrgyzstan over the status of the Kumtor mine. It shares dropped by 10% on Dec. 27 after it said that it had had to stop production at a mine in British Columbia because of a lack of water.

— This story was first published on Jan. 5 2018 in issue 356 of The Conway Bulletin

ALMATY/SEPT. 22 (The Bulletin) — Kazakhstan-focused Central Asia Metals agreed to buy Lynx Resources, which owns a zinc mine in Macedonia, from Bermuda-based fund Orion Co-Investments III and Swiss firm Fusion Capital for $402.5m.

The deal is the biggest merger or acquisition in the Central Asia region this year and highlights the boom year that metal producers and miners have enjoyed.

Nick Clarke, CEO of Central Asia Metals, said that buying Lynx was a perfect fit and the result of extensive research on how to expand.

“We believe that this transaction is an exceptional opportunity for Central Asia Metals to acquire a high quality asset which complements our existing business,” he said in a statement. 

The deal will be financed through a mixture of equity and debt.

Kenes Rakishev, a Kazakh investor with close ties to Kazakhstan’s elite, has been the biggest stakeholder in Central Asia Metals with a 19% stake. Under the deal, he will have to sell around half his stake.

The London-listed Central Asia Metals has performed well this year, rising 10.4% to 254.5p before trading was suspended on Sept. 4 following rumours of a takeover.

When trading begins again on Monday, Central Asia Metal’s share price is expected to rise.

Central Asia Metals’ main assets have been a copper slag heap in Kazakhstan. Analysts said buying up Lynx would mean diversifying its portfolio, an essential move.

“The transaction serves to diversify Central Asia Metal’s jurisdictional and commodity exposure and whilst it appears they have paid full price, they have also acquired an asset with good economics and long life,” the Telegraph quoted analysts at Numis as saying.

ENDS

— This story was first published in issue 344 of The Conway Bulletin, now called the Central Asia & South Caucasus Bulletin, on Sept. 24 2017.

— Copyright the Central Asia & South Caucasus Bulletin 2017

SEPT. 15  (The Bulletin) — The US authorities have started an investigation into Kazakh titanium sponge exports, the US Commerce Department said. They suspect that titanium sponge from Kazakhstan, and Japan, is being dumped in the US. They have also said that Kazakh producers may be receiving unfair subsidies. In 2016, Kazakhstan’s titanium sponge exports to the US were valued at $375,000. Titanium sponge is part of the process used to strengthen the metal for various building uses.

ENDS

— This story was first published in issue 344 of The Conway Bulletin, now called the Central Asia & South Caucasus Bulletin, on Sept. 24 2017.

— Copyright the Central Asia & South Caucasus Bulletin 2017

SEPT. 9 2017 (The Conway Bulletin) — Central Asia Metals (CAM), the Kazakhstan and Chile focused copper producer, suspended its share trading on London’s AIM after it said that it was in advanced talks over a potential “reverse takeover”. CAM didn’t specify which company it may be talking with over a deal. Its main asset is the Kounrad copper dump in Kazakhstan.
ENDS

— This story was first published in issue 343 of The Conway Bulletin on Sept. 15 2017