Mining and power generation group Kazakhmys has maintained its full-year copper cathode production targets despite severe weather and transportation issues adversely affecting output in the first quarter of 2012.
Copper ore extraction of 8,491kt was in line with the preceding quarter and 8% higher than the first quarter of 2011, helped by increased output from increased output from the central and east regions of Kazakhmys, partially offset by lower output from the Zhezkazgan Region.
However, copper cathode equivalent production was 12% and 11% lower than the first quarter and fourth quarter of 2011, respectively. "The reduction was due to lower volumes of copper in concentrate output, and an accumulation of work in progress, partly due to planned furnace repairs at the Balkhash smelter," the group said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Nevertheless, the company says it is still on track to deliver its annual target of between 285kt and 295kt of copper cathode.
"It has been a challenging start to the year with exceptionally low temperatures disrupting the transportation and processing of mined ore," said Chief Executive Officer Oleg Novachuk.
"However, we have much to look forward to and report on in 2012. Stockpiles have been built up and will be processed over the course of the year, so that we remain on track with our annual targets."
Meanwhile in Kazakhmys Power, strong domestic demand led to an 11% increase in net power generated at Ekibastuz GRES-1 to 3,960 GWh.
Total cash and cash equivalents increased from $1,912m to $2,004m during the period.
Shares were trading 0.51% higher at 886.5p early on.
BC
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
