29th Jan 2015 09:48
LONDON (Alliance News) - FTSE 250-listed KAZ Minerals PLC Thursday said copper cathode production rose quarter on quarter and said copper, zinc and silver production were all within the Kazakhstan-focused miner's full-year guidance for 2014.
In the three months ended December 31, the company, formerly Kazakhmys PLC, produced 24,100 tonnes of copper cathode, a significant rise from 18,300 tonnes in the third quarter, driven by improved recovery rates from the Nikolayevsky concentrator.
Production in the fourth quarter also benefited from production starting at the company's Bozymchak mine, which contributed 7,000 tonnes of copper concentrate in the quarter, and made its first export of copper cathode in December.
This results in full year production totalling 83,500 tonnes of copper cathode, which is at the upper end of the company's guidance of between 80,000 and 85,000 tonnes. It represents a 9% increase from 2013, supported by increased copper concentrate production and due to production building up in the smelter during 2013, it said.
Zinc in concentrate output increased 16% quarter on quarter to 32,000 tonnes in the three months ended December 31, reflecting higher zinc grades.
This resulted in full-year zinc output of 121,400 tonnes, down 9% from 2013, but within the company's guidance of between 115,000 and 120,000 tonnes.
Silver output met its guidance for the full year at 3.4 million ounces whilst gold output narrowly missed the company's full year guidance target, reaching 346,000 ounces of gold in 2014.
"Our continuing operations in the East Region delivered a strong fourth quarter of copper cathode production, and we have achieved the upper end of our full year guidance," said Chief Executive Oleg Novachuk.
KAZ shares were down 4.4% to 183.60 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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