KAZ Minerals Raises Guidance As Aktogay And Bozshakol Perform

KAZ Minerals Approves USD1.2 Billion Kazakh Copper Expansion

LONDON (Alliance News) – Copper miner KAZ Minerals PLC saw shares gain ground on Thursday, as it raised its production guidance for the full year following a better-than-expected ramp-up at the Aktogay mine and a decline in debt.

KAZ shares were up 3.2% early Thursday at 861.0 pence.

KAZ said copper production in the third quarter of 2017 rose 14% year-on-year to 75,000 tonnes as the Aktogay mine builds up output, taking nine-month production to 193,300 tonnes compared to just 98,600 tonnes the year before, with a big rise at Bozshakol also contributing to the improvement.

Meanwhile, gold output soared to 137,800 ounces in the nine-month period from 85,700 ounces the year before.

Bozshakol is now “approaching” design capacity and was the main driver for the better-than-expected gold output so far this year. Meanwhile, the East Region and Bozymchak operations remained in line with expectations.

For the full year, KAZ has raised its guidance for copper production to 250,000 to 270,000 tonnes.

In August, KAZ narrowed its annual copper production guidance to a range of 235,000 tonnes to 265,000 tonnes from the prior 225,000 tonnes to 265,000 tonnes range.

Guidance for gold was also lifted to 160,000 to 180,000 ounces – having been revised in August to 150,000 to 170,000 ounces.

Net debt at the end of September stood at USD2.22 billion, down from USD2.44 billion at the end of June.

The mid-cap copper miner operates a series of five producing mines in Kazakhstan as well as the Bozymchak operation just over the border in neighboring Kyrgyzstan. The mines generally contain sulphide ores and by-products that vary in quantities and proportions between mines. The main by-products are zinc, silver, gold and molybdenum.