Mining Journal reported that Kazakhmys posted a 25% fall in 2008 underlying earnings per share, lower than analyst expectations, as the Kazakh mining group was hit by high costs and a collapse in copper prices.

Mr Matthew Hird CFO of Kazakhmys said "Market conditions in 2009 are likely to be challenging but we are taking decisive action, across the group, to conserve cash.”

London-listed Kazakhmys, the world's eighth-biggest copper producer said 2008 underlying earnings per share fell to USD 2.27 from USD 3.02 the previous year.”

According to the average forecast of 11 analysts polled by Reuters estimates that the company was expected to post EPS of USD 2.51. Earnings before interest, tax, depreciation and amortization and excluding special items fell 12% to USD 2.06 billion, versus a consensus estimate of USD 1.81 billion on 2% lower revenues of USD 5.15 billion.

The figures released on Tuesday included earnings from rival Kazakh mining company ENRC, in which Kazakhmys holds a 26% stake. The company released a trading statement on March 5th before ENRC had released its results, showing EBITDA from its own operations fell 30% to USD 1.68 billion. At the time, Kazakhmys said it had cancelled its final dividend to conserve cash and said a possible sale of part of its power business would help pay off debt. It said last October it had signed a memo of understanding with a state-owned firm about establishing a possible joint venture for its power division.

The company had net debt of USD 1.63 billion at the end of 2008 and had an undrawn revolving credit facility of USD 200 million.

(Sourced from Mining Journal)