Inventory woes, costs weigh on Kazakhmys H1 profit
LONDON Aug 23 (Reuters) - Copper miner Kazakhmys saw headline profit more than halve in the first six months of the year, as it was hit by rising costs, falling metal prices and the impact of a build up of inventory due to Chinese rail delays.
London-listed Kazakhmys, the world's 10th-largest copper miner, said underlying profit fell almost 65 percent to $307 million. Its group core profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), fell to $949 million from $1.61 billion.
Kazakhmys copper production was hit in the first quarter by unusually cold weather which disrupted processing and transport, but it recovered some ground in the second quarter. The miner reiterated on Thursday it was on track to produce between 285,000 and 295,000 tonnes of copper.
A build up of goods in transit, due to transport delays on Chinese railways, meant sales of copper cathode were below production over the period, but Kazakhmys said the issue was resolved and the backlog would clear by October.
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