KAZ Minerals on track to meet 2017 production guidance
KAZ Minerals posted its production results for the first quarter to 31 March on Thursday, with copper production up 16% to 52 kilotonnes quarter-on-quarter as new mines ramped up.
The FTSE 250 company claimed it was on track to meet 2017 production guidance for all metals.
At Bozshakol, 23 kt of copper was produced, up from 21 kt in Q4 2016, as the sulphide plant completed planned maintenance in January and the site managed a higher throughput in March.
The clay plant was ramping up in line with expectations, and processed 495 kt of ore in Q1.
At Aktogay, the sulphide concentrator commenced output in mid-February, leading to 7 kt of copper production in Q1.
Copper in concentrate output benefitted from a high grade in the transitional zone, and the company reported a SX/EW cathode output of 5 kt - down from 6 kt quarter-on-quarter, due to the seasonal impact of cold weather.
KAZ said that at its East Region and Bozymchak, copper production was down slightly at 17 kt against 18 kt in the prior quarter, though volumes were supported by the processing of stockpiled ore from the Yubileyno-Snegirikhinsky mine.
By-product output there was on track to achieve full year guidance.
On the financial front, KAZ held net debt of $2.55bn as at 31 March, and had $1.1bn of funds available.
It said its Q1 financial position was supported by limited project spend and the refund of project VAT.
The company’s 2017 project expenditure guidance for Aktogay reduced from $265m to less than $200m, the board reported, due to commissioning efficiencies and operating synergies with Bozshakol.
“I am pleased to report continued progress in the ramp up of our new mines, including an excellent first quarter of production from sulphide operations at Aktogay,” said chief executive Oleg Novachuk.
“The Aktogay concentrator commenced output in mid-February and has produced 7 kt of copper.
“KAZ Minerals is delivering industry-leading production growth as promised to the market and was amongst the lowest cost copper producers globally in 2016.”