26th Apr 2018 09:57
LONDON (Alliance News) - KAZ Minerals PLC on Thursday reported an increase in first-quarter copper production as its Bozshakol and Aktogay mines delivered strong results.
KAZ's overall production for the three months to March rose 3% on the prior quarter to 67,300 tonnes. It has four producing sites, three of which are in Kazakhstan: Bozshakol and Aktogay, plus three mines in a site in the east of the country, as well as Bozymchak in Kyrgyzstan.
At Bozshakol, copper production rose 20% quarter-on-quarter, driven by 10% growth in ore throughput and better copper recovery. Gold output was 29% higher on the last quarter of 2017 at 36,000 ounces due to higher grades and improved recovery.
KAZ's Aktogay mine increased copper production from sulphide ore by 9% on the prior quarter to 21,100 tonnes, again due to better grades and recovery.
In the combined East Region and Bozymchak, copper production fell by 16% to 14,000 tonnes. This was due to planned idling of the Nikolayevsky concentrator, KAZ said. Despite the decline, KAZ maintained full-year production guidance at around 65,000 tonnes of copper.
The average copper grade for the quarter across all sites was 0.52%, compared to 0.50% in the fourth quarter of 2017, though this was lower than the 0.57% a year before.
Overall copper sales were 66,200 tonnes in the period, up from 50,500 tonnes the same period a year prior. Gold sales stood at 45,100 ounces compared to 38,900 ounces, though silver sales fell to 771,000 ounces from 1.1 million ounces.
Chief Executive Andrew Southam said: "I am pleased to report further quarterly production growth in 2018 supported by higher output from the sulphide plants at Bozshakol and Aktogay.
"We are on track to achieve our guidance across all metals for the full year, targeting 270-300,000 tonnes of copper production and 160-175,000 ounces of gold. The group is delivering production growth into a balanced market and the medium-term outlook for copper prices remains strong."
Shares were up 0.9% at 912.40 pence each early Thursday.
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