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Kaz Minerals posts bumper copper production
Kaz Minerals reported a bumper increase in full-year copper production on Thursday, with the figure rising 80% over 2016 to 259 kt in the 2017 calendar year.
The FTSE 250 company said that was at the top of February 2017 full-year guidance of between 225 kt and 260 kt, and in line with its updated range of between 250 kt and 270 kt.
Full-year gold production of 179 koz was also at the upper end of its guidance range, of between 160 loz and 180 koz.
Fourth quarter copper production reached 65 kt, down from 75 kt in the third quarter, which the board said reflected an expected grade reduction at Aktogay, and Bozshakol concentrator maintenance.
At Bozshakol, copper production2 fell to 23 kt in the fourth quarter, from 27 kt in the third, while full year copper production surged to of 101 kt from 48 kt in 2016, in line with guidance of between 100 kt and 110 kt.
Gold production there was maintained at 28 koz in the fourth quarter, precisely in line with the third quarter, while full year output of 119 koz was at the top of the board's range of between 110 koz and 120 koz.
Sulphide plant throughput was limited in the final quarter of the year, due to a 13 day stoppage for maintenance in November.
The board also said that changes to the mining sequence resulted in a reduced sulphide ore mined copper grade of 0.49% in the fourth quarter, and a processed grade of 0.44% was now expected for 2018.
Copper production at Bozshakol was expected to be in the region of 100 kt in 2018
At Aktogay, copper production was 26 kt in the fourth quarter - down from 31 kt in the third - while full year copper production rocketed to 90 kt from 18 kt in 2016, in line with guidance of between 85 kt and 95 kt.
The main sulphide concentrator achieved 68% of design throughput in the final quarter, the board reported.
It also posted oxide production of 7 kt in the fourth quarter and 25 kt for the full year, at the top end of guidance of up to 25 kt.
The company added that 17 kt of copper production in the fourth quarter from East Region and Bozymchak resulted in FY production of 67 kt, ahead of of full-year guidance for around 65 kt.
Fourth quarter zinc in concentrate output was 12 kt, with full year production of 58 kt below guidance of 60-70 kt due to delayed access to high grade ore at Artemyevsky.
"I am pleased that in 2017 we achieved copper production targets across all of our assets including at Aktogay, where we launched sulphide production in February 2017 and declared the concentrator commercial in October," said chief executive Andrew Southam.
"The performance of our two recently commissioned mines at Bozshakol and Aktogay has delivered an 80% increase in annual copper output into a tightening market and gold production at the top of our guidance range."