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By Jeffrey Sparshott
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- Kazakhmys PLC (KAZ.LN), Kazakhstan's biggest copper producer, Thursday said third quarter copper cathode production fell 13.5% but that it remained on track to hit its full-year output target of 315,000 metric tons.
Production of copper cathode from its own concentrate was 82,200 tons during the three months to Sept. 30, compared with 95,000 tons during the same period a year earlier.
"Production in the first nine months of the year shows the impact of suspended high cost mines on reduced ore output," the company said in a statement.
The metal accounted for 63% of the company's first-half earnings before interest, taxes, depreciation and amortization, or Ebitda. Kazakhmys also produces gold, zinc and silver, as well as electricity at the country's biggest power station.
Kazakhmys earlier this year closed high-cost mines, and cut output and capital expenditure as copper demand and prices tumbled. But markets have since rebounded, and the company in August raised its full-year copper production target by 5% to 315,000 tons - a figure still well below the previous year's 340,100 tons.
The cutbacks were meant in part to allow the company to focus on reducing its debt - net debt fell to $1.4 billion as of Sept. 30, compared with $1.57 billion as of June 30.
Kazakhmys saw mixed results with other metals. Third-quarter gold production rose 23.1% to 36,200 troy ounces and silver output increased 6.8% to 4.05 million ounces, while zinc output was down 15.2% to 32,400 tons.
Power output meanwhile dipped slightly compared to a year earlier, though the company said the third quarter represented a marked recovery compared with earlier in the year.
"Kazakhmys Power saw strong recovery in demand during the third quarter...(a) market recovery continues and further growth (is) expected in the fourth quarter," the company said.
Kazakhmys' shares closed at 1,113 pence Wednesday, up nearly fivefold from 231 pence at the start of the year.
Company Web site: www.kazakhmys.com
-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347; jeffrey.sparshott@dowjones.com