UPDATE 2-Kazakhmys says Q1 copper cathode output up 12 pct
Mon Apr 30, 2007 8:36 AM BST140
investing.reuters.co.uk
(Adds analyst comments, details, shares)
LONDON, April 30 (Reuters) - Copper miner Kazakhmys (KAZ.L: Quote, Profile , Research) posted a 12 percent rise in first-quarter copper cathode output to 99,700 tonnes, as production from its own concentrate climbed 9 percent, buoyed by better copper grades from newer mines.
Output from its own concentrate rose to 83,800 tonnes as new mines in Artemyevskoe, Zhomart and Kosmurun -- all in Kazakhstan -- contained higher copper content in ore, pushing the group's average copper grades to 1.25 percent from 1.07 percent a year ago, it said in a statement on Monday.
However, zinc in concentrate production fell 2 percent due to lower production at the Nikolayevskoe mine. Zinc metal output also fell 18 percent as more zinc concentrate was allocated for sale rather than for further processing into zinc metal, the company said in a statement.
"Kazakhmys is on track to deliver 5 percent volume growth this year, if the first quarter is any guide," Credit Suisse said in a note.
"Overall a solid quarter, with the benefits of the new mines beginning to show, and Q2 should be stronger in zinc and gold."
But the increase was below what some analysts had expected, as Kazakhstan's total copper output, which Kazakhmys dominates with some 95 percent proportion of the total, showed a 16 percent rise in the first quarter.
NCB Stockbrokers expected a 14-percent rise to 101,000 tonnes.
Gold and silver production also dropped by 17 percent and 4 percent, respectively, with gold output hit by a delay in the processing of concentrate.
Shares in Kazakhmys were up 0.6 percent at 1,146 pence by 0725 GMT, valuing the firm at around 5.3 billion pounds. |
