8th Dec 2020 10:07
(Alliance News) - Kaz Minerals PLC said Tuesday it expects its copper and gold output for 2020 to beat its previously guided range.
At the end of October, Kaz said it expected gold output for the year to reach the top end of the guidance range of 180,000 to 200,000 ounces, while copper production was guided at the top end of a 280,000 tones from 300,000 tonne range.
On Tuesday, however, the miner said: "Following the successful completion of maintenance in November 2020, the absence of material disruption from Covid-19 and taking into account production run rates, copper and gold output are now expected to be 2% to 3% above their respective guidance ranges."
Kaz also noted it will incur USD100 million of planned capital expenditure for 2020 in the first quarter of 2021, due to the timing of payments on the Aktogay expansion and Baimskaya projects.
Switching to its ongoing sale, the miner noted its GBP3.0 billion takeover offer from Nova Resources, which already holds a 39% stake in the company, will be in the form of a recommended takeover offer - switching from a scheme of arrangement.
Kaz said switching to a recommended takeover will "increase certainty of execution in the interests of Kaz Minerals shareholders."
The company continued: "The independent committee believes that switching to a takeover offer allows accepting Kaz Minerals shareholders to benefit from the takeover offer, subject to the acceptance condition being met, in contrast to a scheme of arrangement which provides the same outcome for all shareholders."
Under the acquisition's terms, Nova will acquire Kaz Minerals for 640 pence per share.
Shares in the Kazakhstan-focused copper miner were 1.8% lower in London on Tuesday morning at 645.01 pence each.
Nova Resources is a company owned by a consortium comprising Kaz Minerals Chair Oleg Novachuk and Non-Executive Director Vladimir Kim.
Kaz still expects the deal will be completed in the first half of 2021.
By Paul McGowan; [email protected]
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