18th Aug 2020 09:37
(Alliance News) -Â Kaz Minerals PLC on Tuesday held its annual production guidance despite a "challenging" half-year which saw lower profit.
Revenue for the six months to June 30 was USD991 million, down 5.6% on USD1.05 billion a year ago. Pretax profit slipped 14% to USD249 million from USD289 million.
Copper production was up 4% to 154,000 tonnes, while gold output was up 25% to 110,000 ounces. The miner maintained its production guidance for 2020, with copper and gold "tracking towards the upper end of their guidance ranges," assuming no Covid-19 related disruption.
Full-year copper production guidance is 120,000 to 130,000 tonnes for the Aktogay mine and 110,000 to 120,000 tonnes for the Bozshakol mine. Gold production guidance for Bozshakol is 140,000 to 150,000 ounces.
Chief Executive Andrew Southam said: "Despite challenging conditions for all miners in the first half of 2020 as a result of Covid-19, KAZ Minerals recorded Ebitda of USD559 million and grew net cash flow from operations by 31% to USD310 million. Thanks to the dedication and hard work of our employees we have increased copper and gold production and maintained our low cost position, recording a net cash cost of 68 [US cents per pound]. Covid-19 risks remain, but the group is on track to achieve its full-year production guidance after an excellent performance in the first half."
Kaz kept its interim dividend flat at 4.0 US cents.
Shares in Kaz were up 0.1% at 580.17 pence in London on Tuesday.
By Lucy Heming;Â [email protected]
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