Kaz Minerals cuts gold output guidance but says it's on track for copper

Kaz Minerals said it was on track to meets its full-year copper production target, but lowered its annual target for by-product gold.

The company said it produced 36,700 tonnes of copper cathode in the first half, down from 41,100 in the same period last year, with copper concentrate production down to 43,300 tonnes from 44,400 tonnes.

Production of zinc in concentrate fell to 49,900 tonnes from 61,700, but Kaz said output for the year should come in at the top end of its guidance of 90,000 to 95,000 tonnes.

Silver granule output nudged down a touch to 1.66m ounces, while gold bar production fell to 16,100 from 17,700 ounces.

Kaz said it was on track to achieve its 2015 copper cathode production target of 80,000 to 85,000 tonnes but cut its annual target for by-product gold to between 34,000 and 38,000 ounces from a previous target of 42,000 to 47,000 ounces.

Chief executive Oleg Novachuk said: “We are pleased to report another solid quarter of production from our East Region mines. At the half year we are on target to achieve our 2015 copper cathode guidance and we have delivered strong zinc and silver production. Pre-production activities have started at both Bozshakol and Aktogay in preparation for the commissioning of processing facilities in the fourth quarter of 2015."

At 13:34, shares were up 0.7% at 173.90p.