Edison Investment Research Limited: Kopy Goldfields (KOPY): Q3 production up 16% y-o-y, full year on track

London, UK, 6 December 2021

Kopy Goldfields (KOPY): Q3 production up 16% y-o-y, full year on track

Kopy Goldfields reported a strong set of Q3 figures with production up 16% year-on-year to 21.0koz and EBITDA up 14% year-on-year to US$15.4m. The company looks on track to meet full year (unchanged) production guidance of 56-59koz (our forecast remains at the lower end of that range), and growth projects, which aim to lift production to more than 100koz by 2025, are progressing well.

As previously, we value Kopy Goldflelds using a discounted free cash flow to equity (DCFE) methodology and a 10% discount rate. Minor modifications to our cash flow forecasts (a US$1.5m increase in 2021e EBITDA and the deferral of US$1.6m in capex from 2021 to 2022) see our DCFE valuation of Kopy Goldfields move only marginally to US$284m (from US$283m previously), but applying the weaker exchange rate of SEK9.05/US$ (from SEK8.65/US$ previously) means that our per-share valuation increases to SEK2.89 from SEK2.75 previously. 

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