News Column

Kazakhmys unveils Q2 2014 production results

July 31, 2014

Throughout the first half of 2014 management of Kazakhmys focused on protecting profit margins.

Ore extraction of 18,175 kt was 7% below the comparative period in 2013 with a reduction in output in some high cost areas of the Zhezkazgan Region and continued stripping work at North mine.

In Q2 2014, ore output increased by 10% to 9,531 kt, when compared to Q1 2014, although output remained below the level achieved in Q2 2013. The increase in ore output was mainly due to the completion of maintenance work at concentrators in the Central Region, which enabled the mines to ramp up ore production.

There was also an increase in ore output at North mine in the Zhezkazgan Region. The average copper grade was 1.02% in the first half of 2014, higher than in the comparative period.

In the first half of 2014, the volume of copper in ore mined declined by 1% when compared to the first half of 2013 as the lower ore volumes mined were partially offset by a higher copper grade.

Copper in concentrate output from own material decreased by 3% to 152.5 kt in the first half of 2014, impacted by an increase in stockpiled ore.

In the first half of 2014, own copper cathode equivalent production of 139.2 kt was 4% below the comparative period in 2013, mainly reflecting the decline in copper in concentrate output. At the end of June 2014, there was an increase of concentrate in transit of 2.1 kt of copper cathode equivalent, which will be recognised as 'produced' in Q3 2014.

In Q2 2014, copper in concentrate output from own material was 9% above Q1 2014, reflecting the higher volumes of extracted ore. The increase in copper in concentrate output was offset by a build-up of work in progress at the Balkhash smelter at the end of the period. Accordingly, copper cathode equivalent output in Q2 2014 was in line with Q1 2014.

Overall copper cathode equivalent production volumes remain on target to meet the Group's guidance of 285 kt to 295 kt for 2014. Output should benefit from a planned reduction of work in progress in the second half of 2014.

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Source: AKIpress News Agency (Kyrgyz Republic)

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