Kazakhstan-focused copper producer Kazakhmys said annual copper production was slightly ahead of expectations, however the company is to cut back on production in 2009. Annual output for 2008 was 340.1 kilotonnes (kt) of cathode from Kazakhmys’s own material plus 3.5 kt of copper sold in concentrate.
By-product output over the year was generally positive with production of zinc in concentrate up 3% to 137.3 kt and gold production up 9% to 123.4 kilo-ounces (koz). Silver production declined by 12% to 16,710 koz.
The company has announced capital expenditure reductions in its copper operations of $250m and has identified efficiency savings of $200m. Copper cathode output in 2009 is to be cut back to around 300 kt.
Net debt was $1.66bn at the end of 2008.
“With the suspension of selected higher cost operations and a significant reduction in discretionary capex, we believe we are better placed to continue to operate through the downturn and to maintain our flexibility to increase capacity when market conditions improve,” said Oleg Novachuk, chief executive officer of Kazakhmys.
No comments:
Post a Comment