16th Aug 2018 09:31
LONDON (Alliance News) - FTSE 250-listed copper miner KAZ Minerals PLC on Thursday reported a sharp rise in interim profit and revenue, as both production and sales increased, resulting in an interim dividend payout.
In the six months ended June, the Kazakhstan-focused miner posted a 48% increase in pretax profit to USD355 million from USD240 million.
Revenue increased 52% to USD1.10 billion from USD721 million the year before.
The miner increased its total copper production by 18% to 139,600 tonnes from 118,000 tonnes, driven by the 83% increase in production at Aktogay to 60,500 tonnes from 33,000 tonnes.
Copper sales increased 22% to 140,800 tonnes from 115,300 tonnes. The realised price of copper concentrate increased 17% to USD6,135 from USD5,238.
KAZ Minerals is proposing an interim dividend of 6.0 cents per share, after not having paid a dividend the year before. The company expects to declare a final dividend "at a similar level".
Looking ahead, the company believes the medium-term copper market outlook remains "positive".
The miner is maintaining is copper production guidance of between 270,000 and 300,000 for the full year. With cost guidance also unchanged, as the company expects the "strong" unit cost performance to continue in the second half.
Chief Executive Officer Andrew Southam said: "KAZ Minerals has delivered strong financial results in the first half of the year due to the ramp up of volumes at Aktogay, higher commodity prices and continued low unit production costs. Following the successful delivery of the Bozshakol and Aktogay projects, the group now has a portfolio of large scale, low cost operations which provides strong cash generation and has enabled the rapid de-gearing of the balance sheet."
Shares in KAZ Minerals were up 7.6% Thursday morning at 589.00 pence each.
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KAZ.L