Kaz Minerals sees record copper production in third quarter

Kazakhstan-focused copper company Kaz Minerals saw record copper production in the third quarter as it scaled up operations at its biggest mines in Central Asia, leaving it firmly on track to meet its full-year copper output targets.

Kaz said on Thursday that copper production rose 7.4% in the three months ended 30 September to 82.9 kilotonnes, topping estimates of 76.1kt as output at its Bozshakol open pit mine was boosted by increased ore throughput and higher grades.

Production at the firm's largest mine, Aktogay, rose 6.9% to 37.3 kt during the quarter.

Kaz said it continued to anticipate an annual copper output of roughly 300 kt, thanks to the higher quality ore from Bozshakol.

Net debt increased to $2.64bn from $2.56bn on the back of a higher level spending in order to expand its Aktogay project.

Chief executive Andrew Southam said: "I am pleased to report a record quarter from our large scale, low-cost open-pit mines, delivering 83 kt of copper and 59 koz of gold.

"Following output growth of 6% in the first nine months, the group is well-positioned to deliver full-year copper production in line with guidance of around 300 kt, whilst gold production is now forecast to exceed guidance of 170-185 koz."

As of 0845 BST, Kaz Minerals shares had climbed 5.56% to 476.80p.