KAZ Minerals (LON:KAZ)
KAZ Minerals (KAZ LN) has announced strong results for Q1 2017 with copper production up 16% QoQ and 130% YoY to 52kt as the ramp up at Bozshakol and Akotgay continued. The two assets now make up the majority of KAZ’s production and it is on track to produce 225-260kt of copper in 2017. We also note that gold production remained strong at 43koz in line with Q4 2016 but up 140% YoY. Grades at Bozshakol were stable which with rising production should benefit unit costs.
Hochschild Mining (HOC LN) has released robust production results for Q1 2017 with attributable silver production flat QoQ and up 12% YoY to 4.1mnoz. Gold production of 61koz up 19% YoY although down 2% QoQ implying total equivalent ounces of 8.6mnoz. Stronger grades at Inmaculada enabled HOC to offset some unplanned stoppages. The stoppages mean that Q1 production is likely to have disappointed, however, HOC have maintained full year guidance of 37mnoz along with all in cost guidance of US$12.2-12.7/oz guidance.