Reuters reported that miner Kazakhmys posted a dip in Q3 copper production blaming an expected drop in the amount of metal in ore mined but said it was on track to meet its full year target and appetite for its metal was steady.
Mr Oleg Novachuk CEO of Kazakhmys said that "In spite of the considerable volatility in financial markets we have seen consistent demand for our copper. Continuing demand for copper is reflected in the current negotiations for our 2012 off take agreements which as in previous years should be completed in the next few months."
Major miners have remained upbeat about the state of demand in energy hungry economies like China key to Kazakhmys, despite uncertainty and eurozone troubles which some analysts have feared would undermine attempts by producers to charge more for their copper next year.
Kazakhmys produced 73,900 tonnes of copper cathode equivalent from its own concentrate over the quarter virtually flat on a year ago and down 6 percent from the Q2. Over the 9 month period to the end of September the group produced 226,900 tonnes of copper cathode equivalent down 5% on a year ago but closing in on its full year target of 300,000 tonnes.
The London listed miner said that the average copper grade for the first 9 months of 2011 was 1.01% below 1.10% a year ago as it is hit by declining grades in mature mines and natural depletion elsewhere. The average grade is set to remain around 1% for the rest of the year.
Kazakhmys said that by product output was also on track to meet full year targets. Zinc in concentrate fell almost 16% in the Q3 on a year ago again due to lower grades and down 3% from the Q2. Own production of silver was 3,084 koz in the quarter down almost 14% as the impact of lower grades was offset by the reprocessing of waste material while own production of gold fell 16% YoY.
The group said that copper prices have fallen almost 19% since the start of the Q3. Three month copper in London is trading around USD 7,680. Its average realized copper price for the first 9 months of the year was USD 9,261. Its balance sheet was in a net funds position for the first time since before the 2008 crash with USD 36 million on its books.
(Sourced from Reuters)
