Stock Market News
Kazakhmys shake-up moves forward but gold output falls
21-08-2014 07:44
Add To Google +1 | Tweet |
Kazakh metal miner Kazakhmys hailed progress with a shake-up designed to focus it on the lucrative copper market, but said 2014 gold production was likely to fall short of hopes.
Kazakhmys has sold three non-core businesses and announced a drive to focus on five cash-generating mines as part of a restructuring unveiled in February this year.
The group plans to sell relatively mature assets in the Zhezkazgan and Central regions, including mines, power plants and smelters to major shareholders and directors Vladimir Kim and Eduard Ogay.
"These mature assets do not currently generate sufficient free cash flow, they have a large labour force, a significant social footprint and do not meet our strategic objective of large scale, low cost, open pit mines," the company said.
It plans to focus on copper, which it said was a metal with the strongest commodity price outlook, driven by rising demand and constrained supply.
Ore extraction was 7% below the first half of 2013 as mining activity was reduced at higher cost zones in the Zhezkazgan region to protect profit margins.
The mining division's gold production is also expected to reach 100,000 ounces in 2014, below previous guidance of 120,000 ounces, due partly to suspension of the Abyz mine due to instability of an open pit. No further output is expected from the mine in 2014, with the option of developing an underground mine at the deposit being evaluated.
Kazakhmys also expects lower gold output from its Bozymchak mine in 2014 due to the slower than planned commissioning of equipment.
Chief executive Oleg Novachuk said: "There is further work required to complete the restructuring and we must ensure these changes take place without disrupting the ongoing business activities. I look forward to providing updates on our progress during the year."
PW
Kazakhmys has sold three non-core businesses and announced a drive to focus on five cash-generating mines as part of a restructuring unveiled in February this year.
The group plans to sell relatively mature assets in the Zhezkazgan and Central regions, including mines, power plants and smelters to major shareholders and directors Vladimir Kim and Eduard Ogay.
"These mature assets do not currently generate sufficient free cash flow, they have a large labour force, a significant social footprint and do not meet our strategic objective of large scale, low cost, open pit mines," the company said.
It plans to focus on copper, which it said was a metal with the strongest commodity price outlook, driven by rising demand and constrained supply.
Ore extraction was 7% below the first half of 2013 as mining activity was reduced at higher cost zones in the Zhezkazgan region to protect profit margins.
The mining division's gold production is also expected to reach 100,000 ounces in 2014, below previous guidance of 120,000 ounces, due partly to suspension of the Abyz mine due to instability of an open pit. No further output is expected from the mine in 2014, with the option of developing an underground mine at the deposit being evaluated.
Kazakhmys also expects lower gold output from its Bozymchak mine in 2014 due to the slower than planned commissioning of equipment.
Chief executive Oleg Novachuk said: "There is further work required to complete the restructuring and we must ensure these changes take place without disrupting the ongoing business activities. I look forward to providing updates on our progress during the year."
PW
Related share prices |
---|
Kaz Minerals (KAZ) share price |
Stock News is provided by Digital Look Corporate Solutions from Sharecast news. Please read the terms and conditions of useage of this data. Republication or redistribution of content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Digital Look Ltd.
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- RBS share price
- Diageo share price
- Standard Life Share Price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- Morrisons Share Price
- Aviva Share Price
- LGO Share price
- Tullow Oil Share Price
- SXX Share Price
- Easyjet Share Price
- Next Share Price
- Thomas Cook Share Price
- SSE Share Price
- IAG Share Price
- Bat share price
- Monitise Share Price
- Kingfisher share price
- Dragon Oil share price
- UKOG share price
- SOLG share price