/KASE, October 30, 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
Kazakhmys PLC Group announces on publication of production report for Q3
2008 (ended September 30, 2008 года) and the interim management statement.
The main indicators for the reporting period demonstrate growth in all
activities of the Group:
Increase in cathode production from own material to 92 kt in Q3 2008 from 82 kt
in Q2 2008.
This growth was supported by assisted by continued improvement in equipment
availability. Increase in Q3 brings production for first 9 months of 2008 to 249
kt, in line with the corresponding period of 2007. The Group maintained 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"
The full version of the report is available at the company site:
www.kazakhmys.com
For detailed information contact:
Kazakhmys PLC
John Smelt
Corporate Relations Head
Tel: +44 20 7901 7882
Tel:+44 787 964 2675
Merlin
Leonid Fink and Anastasia Ivanova (in Russian)
Tel: +44 20 7653 6620
Quotation end
KAZAKHMYS PLC production report in English is available at the KASE website
at:
http://www.kase.kz/emitters/scan/kzms/gbkzms_reliz_301008e.pdf
[2008-10-30]