/KASE, October 31, 08/ - KAZAKHMYS PLC (London), common shares of
which are traded in the official list of Kazakhstan Stock Exchange (KASE) of the
first category, provided KASE with the press release:
Quotation start
- Increase in cathode production from own material to 92 kt in Q3 2008 from
82 kt in Q2 2008:
- Maintained by continued improvement in equipment quality;
- Increase in Q3 brings production for first 9 months of 2008 to 249 kt, in
line with the corresponding period of 2007;
- Maintain previous guidance of full year 2008 copper cathode production
from own material being at the same level as 2007.
- Demand for copper products has remained firm throughout the year in spite
of financial market turbulence
- By-product and gold output has generally been positive in the first 9 months
of 2008:
- Gold by-product output increased by 13% to 92 koz, benefiting from
higher gold content at two new mines;
- In addition, our gold division increased output 17% to 42 koz
- Zinc in concentrate output increased by 3% to 105 kt
- Silver production decreased by 18% to 12 moz reflecting lower mined ore
output in Zhezkazgan region.
- Kazakhmys Power increased power generated by 29% to 7,900 GWh of
electricity during first 9 months of 2008:
- Reflecting increased demand for electricity in Kazakhstan and significant
growth potential of the power plant.
- A review of activities is underway to take account of current market
conditions:
- Marginal operations are being assessed for temporary closure during
period of price weakness;
- Pre-feasibility studies for the major projects at Aktogay and Boschekul
will continue as they require limited capital spend in the near term;
- Discretionary capital expenditure is likely to be reduced until more
attractive pricing materialises.
Oleg Novachuk, Chief Executive Officer, said "This is a sound set of results, with
production increasing over the year. We are therefore on track with our outlook
given at the start of the year, in spite of the severe winter weather in the first
quarter. Demand from our customers has so far this year been solid and we are
positive about the long term outlook for copper in light of potential supply
demand dynamics. However, we are clearly in a challenging and volatile environment
and we are reviewing our operations and capital expenditure to reflect current
market conditions. We are pleased with the performance of our power business,
which increased power generated by 29% over the first 9 months of 2008"
For detailed information contact:
Kazakhmys PLC
John Smelt Head Of Corporate Relations
Tel:+44 20 7901 7882
Olga Nekrassova, Financial Analyst
Tel:+44 20 7901 7814
Merlin
Leonid Fink and Anastasia Ivanova
(in Russian)
Tel:+44 20 7653 6620
Quotation end
The full version of the KAZAKHMYS PLC pres release is available at the KASE
site at:
-
http://www.kase.kz/emitters/scan/kzms/gbkzms_reliz_301008.pdf - in
Russian;
-
http://www.kase.kz/emitters/scan/kzms/gbkzms_reliz_301008e.pdf - in
Kazakh.
[2008-10-31]