Kazakhmys' Shares Top FTSE as Group Lifts Dividend After Solid Full-Year Earnings

Shares in Kazakhmys rose Tuesday after the copper mining group posted a 10% rise in full year revenues - to $3.5bn - and lifted its final dividend by 27% to 28 cents per share.

The group's full-year pre-tax profit increased to $1.62bn, or $2.80 per share, slightly up from $2.79 a year ago.

Net profit, however, fell 36% from last year to $930m, as the group recorded $444m impairment charge linked to the sale of its petroleum business and booked $472m in losses from discontinued operations.

Kazakhmys shares were one of the top advancers on FTSE 100 Tuesday, rising more than 3% to trade at around 953p per share by 11am London time.

Revenues from the sale of copper cathode and rods were $2.57bn, marginally higher than 2011, as the stronger copper prices compensated over lower sales volumes.

Cash costs for the business, however, rose significantly from the previous period, to $1.14 per pound from $0.89 per pound. Credit Suisse said last week those costs will continue to rise, perhaps reaching $1.50 to $1.80 per pound by the end of 2012.

"We continued to generate strong cash flows in 2011, which is reflected in the 27 percent increase in our full year dividend and our ongoing share buy-back programme," said CEO Matthew Hird . "The balance sheet finished 2011 in a net funds position and with $4.2 billion of secured long term funding, we are in an excellent position to continue the delivery of our growth projects."