Kaz Minerals's revenues boosted as growth projects come on-line

Kaz Minerals saw revenues more than double in the first half of the year as its two main mines at Aktogay and Bozshakol came onstream amid higher commodity prices.

Revenues at the Kazakhstan-focused copper miner hit $837m over the six months ending on 30 June, versus $363m in the comparable year-ago period, driving a greater than four-fold jump in operating profits to $291m.

The latter was also the result of management's success in keeping costs down, with net cash costs running at $0.64 per pound during the period

In turn, net debt was lower, falling from $2.67bn to $2.44bn, with the company also having benefited from lower levels of capital outlays and the refund of $176m in project VAT.

For the full-year, management narrowed its copper production target to between 235 and 260kt.

Now, focus was on completing its Aktogay and Bozshakol projects, with the ramp-up at the first said to be progressing well while production at the latter was seen getting up to full throttle in the second half of 2017.

To take note of, Kaz lowered its guidance for gross cash costs from Aktogay - its second largest project - to between $1.10 and $1.30 a pound. At Bozshakol, which according to the company's website alone held the potential to more than double Kaz's production levels, cash costs were now seen in a range from $1.15 to $1.35 a pound.

For East Region and Bozymchak, its other two mines, guidance was set at between $2.05 and $2.25 a pound.