KAZ Minerals posts rise in Q3 copper production

Kaz Minerals reported a rise in copper cathode equivalent output for the third quarter thanks to stronger production in the East Region, Bozymchak and Aktogay.

The company produced copper cathode equivalent of 44,500 tonnes, up from 33,100 tonnes in the second quarter and 21,700 tonnes in the third quarter of last year. Meanwhile, silver production came in at 806,000 ounces, up from 679,000 in the second quarter and 788,000 in the third quarter of last year.

In the nine months to the end of September, copper cathode output was up 66% to 97,100 tonnes and Kaz maintained its 2016 copper output guidance of between 135,000 tonnes and 145,000 tones, up from 81,000 tonnes in 2015.

In addition, Kaz said full-year silver production is expected to exceed the top end of 2,500-2,750 koz guidance due to lower-than-expected grade decline in the East Region in 2016.

hief executive Oleg Novachuk said: "Kaz Minerals continues to deliver sector-leading production growth, with our copper output growing by 66% in the first nine months of this year. Given the progress made in ramping up Bozshakol, our first major growth project, we have declared it a commercially producing asset from today. We are also making good progress on the construction of the Aktogay sulphide project, which will deliver the next phase of our production growth in 2017."

RBC Capital Markets said third-quarter copper cathode equivalent production was 7% above its forecast, while silver production was 39% ahead of its expectations.

Shore Capital, meanwhile, said the narrowed full-year 2016 copper cathode guidance "is eminently achievable, and indeed, beatable".

At 1112 BST the shares were up 4.7% to 296.20p.