A shadow was cast over the results, however, by the news that 11 Kazakh-mys employees had died from a variety of accidents during the first half of the year, with the company admitting that "progress on safety is slower than we had hoped", but recommitting to improve conditions and reach a target of zero fatalities.
However, while the company was hit by the impact of lower commodity prices, including the company's main focus in copper, and a decline in sales volumes, strong cost control measures and cuts including asset sales helped to offset the burden, with losses before tax more than halved to
The company also indicated it will press ahead with a major asset spin off, which will see it sell the majority of its mines to
The restructuring plans, which will also see
When the restructuring is complete, the company will focus on five cash generative operating mines, with key future growth from three major growth projects.
However, the market responded less favourably to the results today, with
ANALYST VIEWS Interviews by Thomas FitzGerald WHAT DO YOU THINK OF THE KAZAZAKMYS' RESULTS AND RESTRUCTURING PLANS? AMOS FLETCHER BARCLAYS Underlying results were good, as earnings beat our estimates by 21 per cent. The key driver of the beat was the gross cash cost performance, with impressive cost control. This came despite slightly lower-than-expected copper sales volumes. The emerging new company, KAZ Minerals, is an interesting investment proposition.
CAILEY BARKER NUMIS Although not a great set of financials in absolute terms, a fairly solid beat on our numbers as asset optimisation and cost efficiency drive is starting to filter through. Sad to hear of 11 fatalities in the year to date at KAZ operations - we know mining is a dangerous business but that's simply not acceptable for a company like this.
Most Popular Stories
- Rackspace Ends Talks About Possible Acquisition
- Mercedes Rolls Out S550 Plug-in Hybrid
- FedEx Adding 50,000 Holiday Jobs
- Plus-Size iPhones Live Up to The Hype
- Missouri GM Plant Adding 750 jobs
- Toxic Algae Threatens Florida Fishing, Tourism
- Cool Features on Today's New iOS 8
- Family Dollar Spurning Bid From Dollar General
- Kohl's Hiring 67,000 for the Holidays
- Poverty Rate Drops for First Time Since 2006