Baku, Azerbaijan, Feb. 27
By Elena Kosolapova - Trend: Kazakhstan's Metallurgical Corporation Kazakhmys decreased revenues from $3.353 billion in 2012 to $3.099 billion in 2013, the company reported on Feb. 27.
The company's loss in the reporting period decreased from $2.27 billion to $2.032 billion.
Its EBITDA decreased from $1.912 billion in 2012 to $1.149 billion in 2013.
The company's loss before taxation from continuing operations hit $681 million compared to $131 million profit in 2012.
"This has been a year of significant change for Kazakhmys. The disposal of our non-core assets has significantly strengthened our balance sheet and allows us to focus fully on optimizing the existing copper operations and delivering our major growth projects. Tight operational control resulted in production, sales volumes and costs all being ahead of target, greatly assisting cash flow, which will remain a key focus in 2014. We continue to seek further operational improvement and are also considering a possible broader restructuring which would create a better positioned and more cash generative group, moving us towards our objective of output dominated by large scale, low cost, open pit mines," the company's Chief Executive Oleg Novachuk said.
The company will likely see further transformation in 2014, moving towards the strategic goal of copper production from a core of large scale, low cost, open pit mines.
Kazakhmys expects copper production in 2014 will be in line with the guidance for 2013, or between 285,000 and 295,000 tonnes. Zinc and silver output will decline to around 120,000 tonnes and 11 million ounces, respectively. Gold will increase to 125,000 ounces, assisted by the commissioning of Bozymchak.
Kazakhmys PLC is a leading international natural resources group with significant interests in copper, gold, zinc, silver and power generation.
It is the largest copper producer in Kazakhstan and one of the top worldwide with 16 operating mines, eight concentrators and a copper smelter. Kazakhmys Mining's operations are fully integrated from mining ore through to the production of finished copper cathode and rod. Total copper cathode equivalent output from own ore was 294,000 tonnes in 2013. Production is backed by a captive power supply and significant rail infrastructure.
Kazakhmys Mining produces significant volumes of other metals, including zinc, silver and gold. In 2013, it produced 134,000 tonnes of zinc in concentrate. The group is amongst the largest global silver producers with output of 14 million ounces in 2013.
Kazakhmys Power operates three captive power stations which supply electricity to Kazakhmys Mining and third parties. In 2013, net power generated by captive power stations was 5,723 gigawatt hours.
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