OREANDA-NEWS. Kazakhmys posted its 3Q07 trading update, showing a decrease in output across the board. According to a research agency Aton, the news is in line with its expectations following the flood at Kazakhmys Southern mine at the Jezkazgan complex. In other negative news, the company now expects to start processing copper at its biggest concentrator, Nurkazgan (which is currently being upgraded) only after 2Q08, much later than the previous deadline (April 2007).

According to the Aton experts, the news is rather negative for the company's stock, as it impacts its 2007F and 2008F output forecast adversely.

In other news, Kazakhmys shareholders approved the acquisition of an 18.8% stake in ENRC for $806.5mn at an EGM last Friday. This news is viewed positively by the experts, as ENRC's valuation could increase significantly following its IPO. However, the analysts do not expect the company will hold its IPO in 2007 or 2008, given the current investor sentiment towards Kazakhstan.