Markets
Kazakhmys buoyed as mining dominates FTSE
Matthew Jeynes, 26 January 2012
Kazakhmys posted as expected 2011 mining production levels and claimed that it expects a similar level of output in 2012.
The FTSE 100 Kazakh mining giant saw copper production come in slightly below its 300,000 tonne target at 299,000 tonnes.
However, this was offset by better than expected gold and silver production, up 150,000 ounces and 13 million ounces respectively.
An increase in output from Kazakhmys’ central region mines saw ore extraction rise by 2 per cent year-on-year to 2011 but a lower copper grade saw the amount of metal processed from the ore fall by 10 per cent.
Kazakhmys’ shares were on the rise this morning, along with the rest of the mining sector, on news that the US Federal Reserve is likely to keep interest rates near zero until 2014, which sent the dollar falling and metal prices rising.
Newly-listed Russian mining firm Polymetal currently leads the blue- chip index, with Kazakhmys on the rise, up 4.13 per cent at 1,159p at 10.20am, but still trailing in Polymetal’s wake.
Oleg Novachuk, chief executive officer, commented, ‘We anticipate maintaining similar levels of copper output in 2012 and our sales contracts for the coming year have all been completed, reflecting continued strong demand for copper.’
Novachuk expects to deliver an update on Kazakhmys’ £3.8 billion growth and investment programme when its full-year results come out on 1 March 2012.
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