Kaz Minerals interims fall as copper sales offset lower prices

Continued copper sales growth partially offset lower commodity prices for Kaz Minerals in the first half of 2019 as revenues and core earnings both fell.

Earnings before interest, tax, depreciation and amortisation fell to $620m from $690 on flat revenues of $1.052m. Copper prices have fallen over worries of a slowdown in China, although the company maintained full year production guidance of 300 kilotonnes. Copper production for the period increased by 6% to 147.6 kt .

“In the short term, a more negative outlook for global demand has driven copper prices lower. However, the medium term outlook for copper prices remains positive, with limited projects in development and significant execution challenges faced by copper producers seeking to deliver new output into the market,” the company said in a statement on Thursday.

“Demand for copper into the next decade is forecast to remain strong, as the traditional drivers of economic development and urbanisation are supplemented by new demand from investment in clean energy generation and the increased adoption of electric vehicles.”