Kaz annual loss widens on low metal prices
Kazakhstan copper miner Kaz Minerals cited lower metal prices and the sale of poorly performing assets as the reason for a wider annual net loss.
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In the year ended 31 December, the FTSE 250 group posted a net loss of $2.3bn (£1.48bn), up 13.3% from the corresponding period in 2013.
The figure, largely driven by a $2.1bn loss from discontinued operations, came in below analysts’ expectations of a $38m net profit.
Lower metal prices offset higher volume of productions weighing on revenue, which fell 9% to $846m leading to a 1.1% fall to $335min earnings before interest, taxes depreciation and amortization.
In October, the Kazakhstan-focused group spun off some of its less lucrative assets in a bid to focus on a smaller number of more profitable mines. The miner said it was relying on three projects to boost its future copper production, while at the same maintaining lower operating costs.
Kaz said that its Bozshakol project is expected to start commissioning in the fourth quarter of 2015, with the Aktogay oxide growth project set to being production at the same time.
The company added it plans to produce between 80,000 to 85,000 tonnes of copper cathode this year, up from the 83,500 it produced in 2014, which represented a 8.7% increase from 2013.
Kaz reported a loss of 5.28p per share and put 2015 gross cash cost guidance at $2.80 to $3.00 a pound for its operating mines.
Kaz shares were up 4.06% to 264.30p at 11:20 on Thursday.