UPDATE:Kazakhmys Copper Cathode Output Drops;Reaffirms Full-Year Target
April 26 2012 - 2:45AM
Dow Jones News
Kazakhstan's largest copper miner, Kazakhmys PLC (KAZ.LN),
Thursday reaffirmed that it's on track to meet its full-year copper
output target after taking into account a 13% drop in copper
cathode production from its own concentrate due to lower copper in
concentrate output.
The U.K.-listed miner said first quarter copper cathode
equivalent production from its own production fell to 64,500 metric
tons from 74,100 tons in the first quarter of 2011 due to lower
volumes of copper in concentrate output, and an accumulation of
work in progress, partly due to planned furnace repairs at the
Balkhash smelter.
The FTSE-100 listed miner said it still remains on track to
produce between 285,000 tons and 295,000 tons of copper cathode
from its own concentrate this year and said that it remains on
track to meet its by-product output targets in 2012.
"It has been a challenging start to the year with exceptionally
low temperatures disrupting the transportation and processing of
mined ore," said Kazakhmys' Chief Executive Oleg Novachuk.
"However...stockpiles have been built up and will be processed over
the course of the year, so that we remain on track with our annual
targets," he added.
He also noted that contractors at Bozshakol, the company's first
major growth project, were mobilized in April, a month ahead of
schedule, and that an additional turbine at the Ekibastuz GRES-1
power station is due to be installed at the end of 2012, which will
increase the coal-fired plant's generating capacity by 20%.
The power station, which is 50% owned by Kazakhmys, boosted it
power output 11% on year to 3.96 terrawatt hours in the first
quarter due to higher demand from Kazakhstan, which accounted for a
24% in the power station's domestic sales.
Kazakhmys also said that it has completed its outstanding sales
of stockpiled gold to Kazakhstan's central bank for $115 million
and has bought back 10.6 million shares under its $250 million
share buy-back program at a cost of $150 million since September
2011.
Gold output from its own production rose 40% on year to 27,000
troy ounces as output in the same quarter a year ago was affected
by repair work at the Balkhash precious metals plant.
At 0811 GMT, Kazakhmys' shares were up 0.2% or 2 pence at 884
pence a share. The company's shares are down 4.9% since the
beginning of the year.
-By Alex MacDonald, Dow Jones Newswires; +44 (0)7776 200 924
alex.macdonald@dowjones.com
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