Bloomberg News

Koza Slides Most in Six Weeks After Ekspres Says Overvalued

July 09, 2012

Koza Altin Isletmeleri AS (KOZAL), a Turkish gold mining company, fell the most in more than six weeks after Ekspres Invest said the company is overvalued and its profit is expected to fall.

The shares declined 4.3 percent to 35.50 liras at the close in Istanbul, the biggest retreat since May 24. The slide pared the stock’s surge this year to 41 percent, the highest on record since at least December, compared with a 22 percent jump for the ISE National 100 Index (XU100), according to data compiled by Bloomberg.

“The company is much too expensive considering the reserve amounts in hand,” Alper Akalin and Sinan Goksen, analysts at the brokerage, said in an e-mailed report today, referring to Koza’s gold reserves.

Koza’s profit will probably fall as the grade, or quality, of the company’s gold deteriorates and its current mines deplete, increasing reliance on the more costly underground operations, the analysts said.

“We expect a visible deterioration in profitability,” they said. The shares were given a 12-month price estimate of 37.90 liras, according to the report.

To contact the reporter on this story: Benjamin Harvey in Istanbul at

To contact the editor responsible for this story: Gavin Serkin at

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