Share Prices & Company Research

Market News

30 Apr 2020 | 09:25

Kaz Minerals cuts capex forecasts, warns of delays to Aktogay expansion

(Sharecast News) - Copper miner Kaz Minerals cut 2020 capital expenditure forecasts and warned that production at its Aktogay expansion project in Kazakhstan would be delayed as a result of disruptions caused by the Covid-19 pandemic. The FTSE 250-listed firm now expects capital expenditure in 2020 to be between $300m and $350m, lower than $400m previously forecast

The Kazakhstan-focused group said its Aktogay expansion project remained on track for completion in 2021, but cautioned that production would now commence in late 2021.

However, Kaz highlighted that it was on track to meet its 2020 copper production guidance of 280-300 kilo tonnes after recording a 7% rise in its first-quarter copper output.

Chief executive Andrew Southam said: "We have adapted working practices to extend shifts, restrict access to sites and to monitor the health of staff.

The measures we have taken have enabled us to deliver a strong quarter of production, with copper and gold output respectively 7% and 28% higher versus the prior-year period, and to maintain our full-year guidance."

But Kaz also warned that measures taken to curb the spread of Covid-19 had impacted its supply chain and lowered the availability of local contractors - as vendors were unable to enter the country to support equipment installations at its sites.

As of 0945 BST, Kaz shares were down 1.93% at 426.90p.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 15th January 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.