UPDATE 1-Kazakhmys H1 EPS beats expectations

* EPS 96 cents, consensus 41.5 cents, vs $1.34

* Says demand for copper has been positive

* Expects copper output to exceed annual target of 300,000t (Adds details)

LONDON, Aug 27 (Reuters) - Kazakh copper producer Kazakhmys (KAZ.L) posted a better-than-expected 28 percent fall in first-half earnings per share on Thursday on lower copper prices, and said it will beat its full-year output target.

Earnings per share dropped to 96 cents, compared with a consensus forecast of 41.5 cents from six analysts, from $1.34 in the year-earlier period.

Benchmark copper prices on the London Metal Exchange MCU3 have more than doubled this year, led by demand from top consumer China, but are still almost 30 percent below the record highs of $8,940 a tonne reached last July. [MET/L]

"Demand for copper has been positive and with our strong customer relationships in China we have been well placed to take advantage of this opportunity," said Chief Executive Oleg Novachuk.

"Demand in our power business has been modest, but the outlook for both demand and pricing is improving."

The group expects copper production to exceed its annual target of 300,000 tonnes given an additional 15,000 tonnes produced from stockpiled material.

Earnings before interest, tax, depreciation and amortisation (EBITDA) slumped to $717 million, exceeding the $384 million consensus, from $1.05 billion.

In July, the company said it used stockpiles to boost first-half copper output by 8 percent, but said second-half production would fall as the firm continues to adjust to weaker demand and a lower full-year target. [ID:nLU386050]

Kazakhmys also has exposure to stainless steel via its 26 percent stake in Eurasian Natural Resources Corp (ENRC.L).

ENRC, the world's largest ferrochrome producer, said earlier this month that market conditions were improving and demand from China should drive a continued recovery. [ID:nLJ326864]

(Reporting by Julie Crust; editing by Victoria Howley)