(Alliance News) - KAZ Minerals PLC on Thursday reported double-digit profit growth in 2019, thanks to improved copper and gold production.
The London-headquartered copper and gold producer reported pretax profit of USD726 million in 2019, up 13% compared to USD642 million a year earlier, as revenue grew to USD2.27 billion from USD2.16 billion.
KAZ Minerals copper production in 2019 was 311,000 tonnes and gold production was 201,000 ounces, up 6% and 10%, respectively, year-on-year. Full-year copper sales volumes totalled 317,000 tonnes versus 296,000 tonnes in 2018, and gold sales were 225,000 ounces, up from 169,000 ounces.
The company said higher production and sales offset lower copper prices, which fell by 8% to USD6,000 per tonne from USD6,526 per tonne in 2018.
KAZ Minerals declared a final dividend of 8 US cents per share, taking the total payout for 2019 to 12 US cents, unchanged year-on-year.
"In 2019 KAZ Minerals has continued to build on its operational track record, delivering further growth in copper production and maintaining its industry leading cost position," said Chief Executive Andrew Southam.
He added: "Our large scale operations in Kazakhstan achieved record levels of production and our proven, low cost asset base provides a strong platform for investment into value-accretive growth projects."
Looking ahead, KAZ Minerals is guiding copper production for 2020 to be between 280,000 tonnes and 300,000 tonnes, which would be down as much as 10% from 2019. KAZ said this is because of declining supply from existing mines, ahead of replacement by new projects.
Silver and zinc in concentrate production are expected to remain broadly in line with 2019, at 3.0 million ounces and 40,000 tonnes, respectively.
KAZ Minerals shares were trading 4.1% higher in London on Thursday at 530.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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