Kazakhmys sees 'strong' copper prices, studies options for ENRC
"The copper price will stay very strong at least for the next two years," Novachuk said today on a conference call. "Delivering copper projects isn't easy and demand is growing much faster than people can deliver projects to the market."
Copper prices jumped 30 percent last year in London as demand soared in China, the world's largest consumer of the metal used in cables, wires and plumbing. Prices reached a record $10,190 a metric ton on Feb. 15.
Kazakhmys rose 3.5 percent to 1,487 pence at the 4:30 p.m. close in London trading, the biggest one-day gain in a month, after posting a 67 percent increase in earnings before interest, tax, depreciation and amortization. The company is developing Kazakhstan's Bozshakol and Aktogay mines as it seeks to raise annual output by two-thirds to 500,000 tons in 2015.
Kazakhmys is considering "strategic options" for its 26 percent holding in Eurasian Natural Resources Corp., including swapping the stake for other assets, Novachuk said. Its interest in ENRC, a producer of ferrochrome, aluminum and iron ore in Kazakhstan, is valued at about $5.25 billion at today's share price.
"We will stay as a mining company in the region where we have expertise, and that area is where we are evaluating our strength," Novachuk said.
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