(Alliance News) - KAZ Minerals PLC on Thursday reported a fall in interim profit and revenue amid lower London Metal Exchange copper prices.
Shares in KAZ were down 10% at 443.11 pence each in London on Thursday morning.
For the six months ended June 30, the company posted a 4.2% year-on-year fall in revenue to USD1.05 billion. Pretax profit sunk by 19% to USD355.0 million.
Earnings before interest, depreciation and amortisation were down 10% to USD620.0 million from USD690.0 million.
The copper price per tonne averaged USD6,165, 12% down on the USD6,917 per tonne recorded in the same period last year. This contributed to revenue from the copper division falling 5.9% to USD849.0 million despite sales rising 2.6% to 144,400 tonnes.
There was a 36% rise in gold revenue however, to USD143.0 million, though silver revenue declined slightly to USD25.0 million from USD26.0 million. Zinc revenue was down by almost half to USD31.0 million from USD60.0 million.
The company proposed an interim dividend of 4.0 US cents per share, down on 6.0 cents from the previous year.
On an operational level, copper production was up by 5.7% to 147,600 tonnes from 139,600 tonnes, driven by increased productivity in the Aktogay mine in Kazakhstan. Aktogay alone produced a 22% rise in copper production from 74,100 tonnes from 60,500 tonnes. Gold production fell by 2.3% to 87,700 ounces from 89,900 ounces.
KAZ also operates the Bozshakol open-pit copper mine, also in Kazakhstan, and the Bozymchak copper-gold mine in Kyrgyzstan. In January, it acquired the Baimskaya copper project in Russia.
Looking ahead, KAZ maintained full-year copper production target of 300,000 tonnes with medium-term copper prices remaining positive, though in the short-term global demand has driven prices lower.
Chief Executive Andrew Southam said: "KAZ Minerals recorded Ebitda of USD620 million in the first half of 2019, delivering increased production and maintaining the group's industry-leading low-cost position.
"The group's near and long term growth projects at Aktogay and Baimskaya are both on track, with the primary crusher, sulphide concentrator and mining fleet upgrade progressing well at Aktogay and pioneer works at Baimskaya approved to commence in the second half of 2019."
