Kaz Minerals lifts full-year copper, gold production guidance

Kaz Minerals lifted its full-year copper and gold production guidance on Tuesday, as it said Nova Resources has changed its £3bn offer for the company to a straight takeover offer.

The company, which is the largest copper producer in Kazakhstan, said in its third-quarter production report that annual output of copper and gold would be at the top end of its respective guidance ranges of 280,000-300,000 tons and 180,000-200,000 ounces.

It said on Tuesday that following the successful completion of maintenance in November, the absence of material disruption from the Covid-19 pandemic and taking into account production run rates, output of both metals is now expected to be 2-3% above the company’s previous guidance ranges.

It also said that due to the timing of payments on the Aktogay expansion and Baimskaya projects, around $100m of capital expenditure planned for this year will be incurred in the first quarter of 2021.

In addition, Kaz announced that Nova Resources, a vehicle owned by chairman Oleg Novachuk and Kazakh billionaire Vladimir Kim, had changed its 640p a share in cash offer for the 60% of Kaz Minerals it does not already own to a straight takeover offer.

The initial offer was rejected by Kaz’s biggest minority shareholders for undervaluing the business.