Kaz Minerals doubles copper production as its ramp up progresses on track

 
Courtney Goldsmith
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Kaz Minerals is one of the top copper producers in the world (Source: Getty)

FTSE 250 miner Kaz Minerals revealed its copper output more than doubled in the first half of the year.

The figures

Shares in Kaz, one of the top copper producers in the world, lifted more than four per cent on the back of the news. However, at the time of writing the firm's share price was down 1.06 per cent to 700p.

Kaz's copper production rose to 118,000 tonnes in the six months to the end of June, up from the previous year's output of 56,300 tonnes.

Gross revenues increased to $837m (£649m) from $363m in 2016 due to higher volumes and commodity prices, while pre-tax profit increased to $240m from $91m the previous year.

Why it's interesting

The Kazakhstan-focused copper producer is benefiting from a production ramp up at its Bozshakol and Aktogay open pit copper mines.

Analysts at Investec said the success of the production growth was clear and it was well timed with rebounding copper prices, which put Kaz on a "strong trajectory".

Copper prices have been surging due to demand from commodity buying giant China.

Prices rose above $6,500 per tonne recently, but Carsten Menke, commodities analyst at Julius Baer, said the market is at risk of a "major correction" due to excessively bullish sentiment.

What Kaz Minerals said

Oleg Novachuk, chief executive of Kaz, said:

I am delighted that the successful delivery of our two growth projects has been reflected in our operating and financial results. We have doubled copper production whilst maintaining our position amongst the lowest cost copper producers globally.

We aim to complete the final stages of ramping up Bozshakol this year and Aktogay in 2018, supported by an improved outlook for copper.

Read more: Copper prices hit a two-year high on rising demand from China

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