30th Apr 2014 09:08
LONDON (Alliance News) - Kazakhmys PLC Wednesday said production levels were down for copper and most of its by-product metals in its first quarter but it remains on track to meet targets over the full year.
The Kazakhstan-focused copper producer said its own copper in concentrate production fell 8.5% to 72,900 tonnes for the three months ended March 31 from 79,700 tonnes the previous year, and its own copper cathode equivalent production fell 4.3% to 69,500 tonnes from 72,600 tonnes.
The company said its copper production rates were down as it cut ore extraction, excluding stockpiled output from its Bozymchak mine, by 13% to 8.6 million tonnes from 9.9 million tonnes.
Kazakhmys reduced mining activity in some areas of its Zhezkazgan region to protect margins, saw restricted output at its Nurkazgan mine due to maintenance and equipment downtime, and suspended operations at its Abyz mine in January for stripping work.
Kazakhmys said it expects these assets to all increase extraction during 2014.
However, the company said its average copper grades remained flat on the previous quarter at 1.03% but increased slightly compared to its 0.98% rate the previous year.
Kazakhmys said it remains on target to meet its 2014 annual production target of between 285,000 tonnes and 295,000 tonnes.
The company said its zinc-in-concentrate production fell 0.9% to 31,700 tonnes from 32,000 tonnes as the start of stripping operations at its Abyz mine in January reduced its overall zinc production.
It added that its total silver production fell 16% to 1.8 million ounces from 3.4 million ounces due to lower grades and volumes of ore mined.
However, the company said its gold production increased 17% to 28,200 ounces from 24,200 ounces as the release of work in progress at the refining facilities and the processing of stockpiled ore from Abyz offset a fall in metal mined.
It said that all by-product outputs are also in line with its annual targets.
Kazakhmys said its copper cathode equivalent sales volumes fell 7.9% to 69,600 tonnes from 75,600 tonnes, but its zinc, silver bar and granule equivalent and gold sales volumes all increased during the period.
The company said its average copper price of sales fell 11% to USD7,116 per tonne, its average silver price fell 30% to USD21 per troy ounce, and its gold prices fell 21% to USD1,276 per troy ounce.
Kazakhmys shares were down 0.9% to 234.90 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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