30th Jul 2015 07:55
LONDON (Alliance News) - KAZ Minerals PLC Thursday said production fell across every single one of its commodities in the first half of 2015, resulting in the company lowering its full year gold production guidance.
The multi-commodity miner, which operates in Kazakhstan, said it produced 36,700 tonnes of copper cathode in the first half of 2015, which was down from 41,100 tonnes a year earlier whilst copper concentrate production dropped to 43,300 tonnes from 44,400 tonnes. Copper production for the full year is on track to hit its forecasts.
Zinc in concentrate production also ell to 49,900 tonnes from 61,700 tonnes as mining activities moved to lower by-product grade areas. KAZ said full year production should hit the top end of its guidance of 90,000 to 95,000 tonnes.
Silver granule production experienced a small fall but was broadly flat at 1.66 million ounces but gold bar production was no exception to the trend and fell to 16,100 ounces from 17,700 ounces.
KAZ said silver production benefited from higher than expected silver grades at Artemyevsky and Irtyshsky in H1 2015, improved recovery rates and a release of work in progress but gold production was hit by lower gold grades but is expected to rise in the second half, it said.
KAZ said silver production for 2015 will be at the top end of its 2.25 to 2.50 million ounces, but also said it has revised its gold production for the full year down to between 34,000 to 38,000 ounces of gold. All other full year production guidance targets remain unchanged.
"We are pleased to report another solid quarter of production from our East Region mines. At the half year we are on target to achieve our 2015 copper cathode guidance and we have delivered strong zinc and silver production," said Chief Executive Oleg Novachuk.
KAZ shares were down 1.3% to 170.50 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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