Baku, Azerbaijan, Jan. 29
By Elena Kosolapova - Trend:
Kazakhstan's Metallurgical Corporation KAZ Minerals revenues from continuing operations declined from $931 million in 2013 to $846 million in 2014, the company said Feb. 26.
The decrease resulted from lower metals pricing and metals sales in 2014.
Copper cathode sales volumes of 78, 200 tons were below production volumes of 83,500 tons due to movements in finished goods inventory.
EBITDA (excluding special items) from continuing operations was broadly unchanged at $355 million in 2014 as lower costs offset the 9 percent fall in revenues.
In 2014, sustaining capital expenditure for continuing operations was $53 million, slightly below the anticipated spend as some investments have been carried forward into 2015. Sustaining capital expenditure in 2015 for the East Region where the majority of the company's assets are located is expected to be $80 million-$100 million. The Bozymchak mine is forecast to require around $25 million of capital expenditure in 2015 and the group may invest up to $20 million to develop a new section of the Artemyevsky mine.
As at December 31, 2014 the group's net debt position was $962 million, consisting of $2.130 million of gross funds and $3.092 million of borrowings. Undrawn debt facilities of $798 million were available as of December 31, 2014. The major growth projects are securely funded by the long-term debt facilities and funds on hand.
KAZ Minerals PLC is a high growth copper company focused on large scale, low cost, open-pit mining in Kazakhstan. It is a leading copper producer in Kazakhstan with five operating mines and four concentrators. In 2014, total copper cathode output from continuing operations was 84,000 metric tons.
The group's continuing operations also produced 121,000 metric tons of zinc in concentrate, 3.435 million ounces of silver and 35,000 ounces of gold in 2014.
The Group has two major copper projects under construction, Bozshakol and Aktogay, and a third, Koksay, at scoping stage. These projects are expected to deliver one of the highest growth rates in the industry and transform KAZ Minerals into a company dominated by world-class, open-pit copper mines.
KAZ Minerals increased copper cathode output 9 percent to 83,500 metric tons in 2014. The company's zinc in concentrate output decreased 9 percent to 121,400 metric tons in 2014. Silver granule production hit 3.435 million ounces. Gold bar production hit 34,600 ounces in 2014.
Edited by CN
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