1st Aug 2006 07:03
Kazakhmys PLC01 August 2006 1 August 2006 Kazakhmys PLC Production Summary for the second quarter ended 30 June 2006 • Copper cathode production grew by 11% and copper in concentrate production increased by 13% in the second quarter of 2006 compared to the first quarter of 2006. Copper cathode produced from own copper concentrate was up by 20% over the same period. • Zinc metal and zinc in concentrate production were respectively 14% and 20% lower compared to the first quarter as the Group focused on achieving increased copper recovery from complex copper-and-zinc containing ores and due to technical issues associated with the coolers at the Balkhash zinc plant. * Gold and silver production from own concentrate grew by 31% and 4%, respectively, compared to the first quarter of 2006 primarily due to increasing ore output from the high gold/silver grade ores of the Abyz and Artemyevskoe mines. Kazakhmys Group Copper Production 6m 6m Q2 Q1 Q2 2006 2005 2006 2006 2005---------------------------------------------------------------------------------Ore extraction '000 t 20,127 19,458 10,287 9,839 9,866Average copper grade % 1.1 1.0 1.1 1.1 1.1Average zinc grade % 4.0 3.0 4.0 4.0 2.8 Copper in Concentrate '000 t 202.6 200.3 107.6 95.0 103.5own concentrate '000 t 183.4 172.6 98.7 84.7 88.6purchased concentrate '000 t 19.2 27.7 8.9 10.3 14.9 Copper Cathodes* '000 t 187.9 199.7 98.8 89.1 104.3own concentrate '000 t 169.0 167.3 92.2 76.8 86.3purchased concentrate '000 t 17.5 25.6 5.9 11.6 15.7tolling concentrate '000 t 1.4 6.7 0.7 0.7 2.3Copper Rod '000 t 14.3 5.9 9.0 5.3 4.6--------------------------------------------------------------------------------- *Includes copper used to produce copper rod Operational review In the second quarter of 2006, the Group produced 98.8 thousand tonnes of coppercathode (of which 9 thousand tonnes were used to produce copper rods), an 11%increase on the first quarter of 2006. Copper cathode production from ownconcentrate increased by 20% compared to the first quarter, reaching 92 thousandtonnes. Copper cathode production through tolling arrangements has remained atthe same level. Total copper cathode production of 98.8 thousand tonnesrepresents a 5.2% decrease compared to the same period in 2005. The reduction incomparison to the same period in 2005 is primarily attributable to a 40%reduction in purchased concentrate, operational difficulties due to adverseweather conditions at the beginning of 2006 and, to a lesser degree, to thedelay in achieving customs clearance for 8 locomotives at the Chinese border inthe second quarter of 2006. Kazakhmys Group by-products production 6m 6m Q2 Q1 Q2 2006 2005 2006 2006 2005--------------------------------------------------------------------------------Zinc in Concentrate '000 t 70.6 42.3 31.3 45.1 19.7Zinc metal '000 t 33.8 28.7 15.6 18.2 11.6 Silver '000 oz 10,692 10,638 5,443 5,249 5,641own concentrate '000 oz 10,660 10,593 5,433 5,226 5,632tolling '000 oz 32 45 10 23 9 Gold '000 oz 77.7 62.8 42.7 35.1 42.7own concentrate '000 oz 53.6 46.8 30.4 23.2 33.7tolling '000 oz 24.2 16.0 12.3 11.9 9.0-------------------------------------------------------------------------------- Zinc metal production in the second quarter of 2006 was 15.6 thousand tonnes incomparison to 18.2 thousand tonnes in the first quarter of 2006 due to technicalissues with the coolers at the zinc plant, which are currently being rectified.Zinc in concentrate production was lower than in the first quarter of 2006 asthe Group focused on copper recovery from complex copper-and-zinc containingores. In the second quarter of 2006, the Group produced 5.4 million ounces of silverand 42.7 thousand ounces of gold, an increase of 4% and 22%, respectively,compared to first quarter of 2006. Of the 42.6 thousand ounces of gold produced,30.4 thousand ounces were produced from own concentrate (a 30.9% increasecompared to the first quarter of 2006). This increased gold production is theresult of a larger ore contribution from the Abyz and Artemyevskoe mines ofwhich both have high gold content in their ores. Of the 5.4 million ounces ofrefined silver, only 9.6 thousand ounces were produced under tollingarrangements. The higher silver production from own concentrate was also theresult of the raised output at the Abyz and Artemyevskoe mines. Review by region Zhezkazgan 6m 6m Q2 Q1 Q2 2006 2005 2006 2006 2005--------------------------------------------------------------------------------Ore extraction '000 t 14,050 13,751 7,226 6,824 6,993Average copper grade % 0.8 0.9 0.8 0.8 0.9 Copper Concentrate '000 t 280.1 299.8 140.7 139.5 145.4Copper Cathodes1 '000 t 105.8 117.9 54.1 51.7 57.9of which tolling '000 t 0.5 0.1 0.3 0.3 --Copper Rod '000 t 14.3 5.9 9.0 5.3 4.6--------------------------------------------------------------------------------*Includes copper used to produce copper rod At the Zhezkazgan complex, copper concentrate production was marginally higherwith 1% growth in the second quarter of 2006 compared to the first quarter of2006. Copper cathode production was around 5% higher than in the first quarterof 2006, but lower than in the second quarter of 2005 due to the scheduledmaintenance shutdown of the Zhezkazgan copper smelter. Copper rod production increased significantly from 5.3 thousand tonnes in thefirst quarter of 2006 to 9 thousand tonnes in the second quarter of 2006 due tomore favourable market conditions. Balkhash 6m 6m Q2 Q1 Q2 2006 2005 2006 2006 2005--------------------------------------------------------------------------------Ore extraction '000 t 2,286 2,823 1,266 1,021 1,432Average copper grade % 0.8 0.7 0.8 0.8 0.8 Copper Concentrate '000 t 133.0 91.8 84.2 48.9 50.2Copper Cathodes '000 t 82.1 81.8 44.7 37.4 44.3of which tolling '000 t 0.9 6.6 0.4 0.4 2.3Copper Rod '000 t -- -- -- -- ---------------------------------------------------------------------------------- Copper concentrate and copper cathode production at the Balkhash complexrecovered from the first quarter results increasing by 72% and 20% respectively.Overall, the first half of 2006 copper cathode production was higher than in thesame period of 2005 primarily due to higher copper grades. East Region 6m 6m Q2 Q1 Q2 2006 2005 2006 2006 2005-------------------------------------------------------------------------------- Ore extraction '000 t 2,318 2,428 957 1,361 1,276Average copper grade % 2.6 2.3 2.9 2.4 2.2 Copper Concentrate* '000 t 259.5 241.2 127.4 132.1 106.7Copper Cathodes '000 t -- -- -- -- --Copper Rod '000 t -- -- -- -- ---------------------------------------------------------------------------------- *Excludes concentrate processed by third parties In the first quarter of 2006, copper concentrate production at the East Regioncomplex was 4% lower compared to the first quarter of 2006. However highercopper grade ores from recently commissioned mines supported an increase of 7.6%in copper concentrate production in the first half of 2006 compared to the sameperiod of 2005. Karaganda 6m 6m Q2 Q1 Q2 2006 2005 2006 2006 2005--------------------------------------------------------------------------------Ore extraction '000 t 1,473 455 841 633 165Average copper grade % 1.8 0.6 2.3 1.2 0.8 Copper Concentrate '000 t 71.2 38.5 43.2 28.1 29.7Copper Cathodes '000 t -- -- -- -- --Copper Rod '000 t -- -- -- -- ---------------------------------------------------------------------------------- Ore extraction and copper concentrate production at the Karaganda complex minesin the second quarter of 2006 increased by 33% and 54% respectively compared tothe first quarter of 2006. Production ramp-up at the recently commissioned Abyzand Nurkazgan mines continues to progress well and is in line with managementexpectations. For further information please contact: Jinsoo Yang, Head of Investor Relations Tel: +44 20 7901 7800Sergei Stephantsov, Deputy Head of Investor RelationsKazakhmys PLC Robin Walker Tel: +44 20 7251 3801Finsbury - ends - Notes to Editors The Group's principal business is the mining, processing, smelting, refining andsale of copper and copper products, including copper cathode and copper rod, andis carried on by the Company's main subsidiary Kazakhmys Corporation LLC("Kazakhmys"). Based on 2005 production, the Group is the 10th largest producerof copper cathode and mined copper in the world. The Group's operations arevertically integrated. Kazakhmys operates 19 open pit and underground mines andtwo smelting and refining complexes in the Republic of Kazakhstan. Kazakhmysalso owns significant rail infrastructure in Kazakhstan and MKM, a copperproducts fabrication company in Germany. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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