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Kaz Minerals cuts capex forecasts, warns of delays to Aktogay expansion
30th Apr 2020 09:25
(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.
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.