Kopy Goldfields


Market CapSEK1638m

Last Close SEK1.84

Following the reverse takeover of Kopy Goldfields by Amur Zoloto in September 2020, the new Kopy boasts production of >50koz pa of gold from two hard rock mines and a number of smaller placer deposits. Kopy also retains a 49% interest in the Krasny project and 100% of the Maly Patom exploration licences.

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Investment summary

Despite a challenging Q1 following a COVID-19 outbreak at Yubileyniy in December 2020, Kopy Goldfields reported a competent set of H1 results, with EBITDA of US$14.0m (H120: US$17.8m) giving an EBITDA margin of 38% despite production down 14% y-o-y. Costs were well contained at US$859/oz (H120: US$861/oz). Kopy expects higher H2 production driven by the ramp-up of heap leach and placer operations and commissioning of Yubileyniy expansion. FY21 production guidance remains 56–59koz.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2019A 70.1 27.3 14.0 1.47 14.4 N/A
2020A 98.8 45.6 27.6 2.7 7.9 N/A
2021E 102.5 42.2 26.2 2.3 9.2 N/A
2022E 150.3 72.6 52.9 4.6 4.6 N/A
Industry outlook

In our last note on the gold price (The gold rush, published on 11 June 2020), we argued that the sharp increases in the total US monetary base might be expected to support a nominal gold price of US$1,892/oz and potentially as high as US$3,000/oz. While there is a historically strong and statistically significant correlation of 0.909 between the gold price and the total US monetary base from 1967 to 2018, there is very little visibility as to how, or to what extent, the total US monetary base may be expected to evolve. In the four months to November 2020, the US monetary base was expanding at an average rate of approximately US$98bn per month, which would equate to an expected increase in the gold price (using the historical correlation) of approximately US$391/oz per year.

Last updated on 21/09/2021
Content on Kopy Goldfields
Kopy Goldfields – Organic growth to more than 100koz in Russia
Metals & mining | Initiation | 25 January 2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 63.7
Forecast gearing ratio (%) 55
Price performance
Actual (5.1) (9.3) (33.5)
Relative* (0.4) (12.2) (50.5)
52-week high/low SEK2.7/SEK1.8
*% relative to local index
Key management
Mikhail Damrin CEO
Tim Carlsson CFO
Jakob Sintring Investor relations