KAZ Minerals has demonstrated the expected 1Q2017 production results.
In 1Q2017, KAZ Minerals produced 52.1kt of copper, increasing production by 16% q/q and 130% y/y. An increase in production was reached mainly due to ramp up at the Bozashkol and Aktogay projects.
In connection with the temporary decrease in the zinc content at Artemievskaya mine, the production of zinc in 1Q decreased by 19% q/q. Gold production shows stable results of 42.5koz compared to 42koz in the 4Q2016. The Company produced 757koz of silver during 1Q2017, that 23% lower than in the previous quarter, but by 7% higher than in 1Q2016, due to increased production at Bozshakol.
The Company's operating results remain positive, however, within the planned annual guidance. We note that we are positively assessing the Company's ability to achieve the forecasted production for 2017, in the range of 225-260kt. We maintain our BUY recommendation on shares of KAZ Minerals with 12M TP GBp 652/share.