Reuters reported that Kazakh miner Kazakhmys posted 7% dip in H1 copper production in line with expectations and said it was on track to meet its full year target of 300,000 tonnes after the second quarter saw improved grades and output.

The FTSE 100 miner said it was hit in the H1 by lower copper in concentrate production, on the back of lower grades that offset an almost 2% rise in ore extracted. Kazakhmys produced 153,000 tonnes of copper cathode equivalent from its own concentrate, compared with 164,300 a year ago.

In the Q2, however output increased by 6% on the previous three months as it extracted more ore and average grades nudged above 1% though it was still down more than 8% on year ago levels.

Analysts at Citi said that after a disappointing first quarter on grades and a precious metals refinery outage, Kazakhmys has reported strong second-quarter production results. We would expect the shares to outperform on these results, especially as several miners have missed on copper production this year.

Kazakhmys said that by product output was in line with the full year target. Zinc in concentrate output dipped 7% to just under 76,000 tonnes. Though marginally down and flat over the H1 respectively, gold and silver production almost doubled in the Q2 on the first 3 months after the end of repair work at its Balkhash precious metals refinery.

Copper prices have dipped 18% over the half year easing in recent months after touching a record high in February. Three month copper in London is trading around USD 9,760 per tonne. Kazakhmys reports full H1 earnings on August 25th 2011.

(Sourced from Reuters)