Senior copper producer Kaz Minerals reports strong results despite challenging year
(Kitco News) - Kaz Minerals, the largest copper producer in Kazakhstan, reported today that its full-year 2020 copper production was 306 kt (2019: 311 kt) and gold production was 196 koz (2019: 201 koz), with strong performance at all divisions, despite challenges presented by Covid-19.
The company’s revenues increased by 4% to $2,355 million (2019: $2,266 million) as higher commodity prices offset lower production and sales volumes. 2020 EBITDA was $1,431 million representing a margin of 61% (2019: $1,355 million, 60% margin).
Operating profit increased by 9% to $1,005 million (2019: $923 million). The company demonstrated strong cash generation due to higher net cash flows from operating activities of $807 million (2019: $512 million).
Kaz Minerals’ 2021 copper production guided at 275-295 kt as grades decline in line with mine plans at Aktogay and Bozshakol. Aktogay expansion project remains on track to start up by the end of 2021.
CEO Andrew Southam commented, “KAZ Minerals’ operations proved resilient in 2020, despite the challenges posed by Covid-19. The group delivered strong production, which combined with improved commodity prices in the second half of the year, saw the group reported EBITDA of $1.4 billion at a 61% margin. The group remains a first quartile copper producer with a highly competitive net cash cost of 64 USc/lb. I am pleased that the Aktogay expansion project remains on track to start up by the end of 2021.”
KAZ Minerals is the largest copper producer in Kazakhstan. The company is focused on the mining of copper and the development of new copper mining projects in Kazakhstan and Russia.