Search Share Prices
Mine ramp up helps Kaz Minerals FY profit shine
Copper and gold miner Kaz Minerals on Thursday reported a hefty jump in full year earnings before interest, taxes, depreciation and amortization to $503m from $67m.
Copper production rose to 259,000 tonnes from 143,500 tonnes a year earlier after the Kaz ramped up sulphide concentrators at the Bozshakol and Aktogay mines.
The company said 2018 it expected copper production to be between 270,000-300,000 tonnes but at a slightly lower average grade.
"Following the successful ramp-up to date of Bozshakol and Aktogay our asset base is now dominated by large scale, low cost, modern copper mines which are set to generate significant cash flows in the future," said chief executive Andrew Southam.
Kaz said the outlook for the global copper market was improving, as supply from existing mines continues to decline and additional output from new projects has been delayed.
"There is also potential for supply disruption in the short term which could affect a market that is tightly balanced," the company said.
"In the medium term, economic growth is expected to drive demand from traditional sources, combined with the potential development of new markets for copper such as the increased adoption of clean energy generation and electric vehicles."
"The cash flow generated by our low cost assets in 2017 has materially strengthened the group's financial position and we are investing in a low risk project to deliver further growth through the expansion of Aktogay."