Katanga Mining "sector outperform," target price reduced

05/15/08 - Haywood Securities

NEW YORK, May 15 (newratings.com) - Analysts at Haywood Securities maintain their "sector outperform" rating on Katanga Mining Ltd (KAT-T). The target price has been reduced from C$22.50 to C$18.75.

In a research note published this morning, the analysts mention that the company' 1Q08 revenues of $90.2 million were offset by the operating costs and non-cash adjustment of $65.7 million. Commercial production at Kamoto would not start until 2Q and the profits from the sale of copper at Kamoto were capitalized in 1Q08, the analysts add. The capital cost estimate for the KOV deposit has been raised by 40% to reflect the recent rise in costs.