25th Oct 2018 09:41
LONDON (Alliance News) - Kazakhstan-focused KAZ Minerals PLC said Thursday its copper production increased in the third quarter with a higher ore throughput at all its assets, saying this put it on track to meet full-year guidance.
The miner's copper production in the third-quarter increased 2.5% to 77,200 tonnes from 75,300 tonnes a year prior. It also was up from 72,300 tonnes in the second quarter.
The rise in output was attributed to the performance at the Aktogay mine, where copper production increased 12% to 34,900 tonnes from 31,200. The mine's increase was mainly due to a "seasonally higher oxide output".
KAZ's third-quarter production means it is well positioned to achieve its full-year guidance of between 270,000 tonnes and 300,000 tonnes.
"In 2018 the group delivered a smooth ramp up and benefited from high copper grades at its newest mine, Aktogay, with copper output 12% above the same period in 2017. Following a strong third quarter across KAZ Minerals' assets, we are well placed to achieve our full-year copper production target and the top end of our gold and silver guidance," said Andrew Southam, chief executive officer.
KAZ's gold production in the quarter increased slightly to 45,200 ounces from 44,800 ounces in the same period the year before and 39,900 ounces in the second quarter.
The miner expects its full-year gold production to be at the top end of its guidance of between 160,000 ounces to 175,000 ounces.
KAZ's silver production in the third quarter decreased 1.2% to 941,000 ounces from 952,000.
For the nine months ended September, KAZ's copper production increased 12% to 216,800 tons from 193,300 tons in the same period a year before.
Gold production in the first nine months of the year decreased slightly to 135,000 ounces from 137,800 ounces.
Silver production in the first nine months decreased to 4.8% to 2.6 million ounces from 2.7 million ounces.
In the first nine months of the year, KAZ increased its copper sales 13% to 218,700 tons from 193,200 tons. The "ramp up" of sulphide operations at Aktogay were attributed for the increase.
At September 30, the miner's average provisional price of copper was USD5,457 per ton. KAZ said this was below the London Metal Exchange price due to the deduction of treatment and refining charges.
KAZ has no commodity price hedges in place, in line with company policy.
Gold sales in the nine months to September were down 2.8% to 123,600 ounces from 127,200 ounces the year before.
Silver sales were up slightly to 2.8 million ounces.
Shares in KAZ Minerals were up 7.6% Thursday morning at 481.10 pence each.
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KAZ.L