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Kazakhstan-focused copper and gold miner KAZ Minerals reported on Thursday stronger annual earnings and lower debt, after rising commodity prices helped offset lower production.
The London-listed miner said copper output, which dipped to 306,000 tonnes in 2020 from 311,000 tonnes in 2019, was expected to slip further in 2021 to between 275,000 and 295,000 tonnes as grades decline at the Aktogay and Bozshakol mines.
Despite the copper production fall, the company said 2020 earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 5.6% to $1.431 billion from $1.355 billion in 2019. Gold production also dipped in 2020 to 196,000 ounces, from 201,000 ounces.
The miner’s cash position more than doubled from $541 million to $1.299 billion, and net debt fell 5.7%.
KAZ shares traded flat after the results, holding near their highest level since mid-2018.
The stock, buoyed by rising copper prices, has rallied further after a consortium that offered to take the firm private raised its bid this month. The group is led by KAZ Chairman Oleg Novachuk and Kazakh billionaire Vladimir Kim.
KAZ said it would not distribute a dividend after recommending shareholders accept the increased takeover offer, which values the miner at 3.69 billion pounds ($5.22 billion).
($1 = 0.7070 pounds)
(By Helen Reid; Editing by Edmund Blair)
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