AKIPRESS.COM - Kaz Minerals PLC announced Thursday that its revenues generated by the East Region decreased by 9% or $85 million in 2014 to $846 million.

"The 9% fall in revenues primarily reflected the weaker pricing environment on the LME and LBMA markets for copper, gold and silver products and lower copper cathode and precious metal sales volumes in 2014," said in the press release.

Revenue from copper cathode sales fell by 7% to $550 million in 2014, driven by a 3% decrease in realised prices and a 4% decline in sales volumes. The average realised price for copper cathode sales reduced to $7,040 per tonne with the lower average LME copper price during 2014. The realised copper cathode price was above the average LME copper price of $6,862 per tonne in 2014 mainly due to the timing of the sales and the premium received on the sale of copper cathode to reflect the terms of trade.

The East Region sold 78.2 kt of copper cathode in 2014 which was 4% below the levels in the prior year and 5.3 kt less than the volume produced in 2014. Sales volumes in 2014 were negatively impacted by the build-up of finished goods due to the low inventory levels at the start of 2014 and delays to shipments across the Chinese border at the end of the year.

Revenue from the sale of zinc concentrate was consistent with the prior year as higher prices offset the decline in sales volumes. The realised price for zinc concentrate sales rose by 13% to $1,185 per tonne of contained zinc content in 2014, mirroring the rise in the average LME zinc price to $2,164 per tonne. Zinc concentrate sales are priced by reference to the LME zinc price less processing charges. Zinc concentrate sales fell by 11% to 121.9 kt, mainly due to the 9% decline in production in 2014.

Silver granule revenues fell by $28 million to $78 million in 2014 principally due to the 23% reduction in the average realised price for silver in 2014. Sales of silver granule were 4% below the prior year at 4,224 koz with the 27% decline in production offset by the release of inventory in 2014.

Gold bar revenues of $44 million in 2014 were negatively impacted by both lower sales volumes and prices. Gold bar sales of 35.7 koz were 13.3 koz below the prior year with the reduction in production in 2014. The realised price for gold bar declined by 5% to $1,226 per ounce due to the weaker LBMA prices in the year.

Other revenue includes income from the sale of lead by-products along with sulphuric acid. The East Region acquires sulphuric acid as a by-product of the smelting of copper in concentrate at the Balkhash smelter. Other revenue also included non-recurring income of $10 million from the sale of by-product stock during 2014.