Base metals miner Kagara Zinc Ltd has cut its copper production forecast for this year by ten per cent to 27,000 tonnes after bad weather adversely affected its operations in northern Queensland.
On the news, shares in the West Perth-based company lost 50 cents, or 9.33 per cent, to close at $4.86 each today.
Kagara said operations at its Thalanga copper concentrator located to the west of Charters Towers had been temporarily suspended, due to road closures caused by rain.
"Our main haulage routes, the Gregory Development Road south to Thalanga and the Kennedy Highway north to Mt Garnet from the Balcooma mining operations, have been closed by the Queensland Department of Main Roads a number of times over the past three months. In spite of this Kagara has, until recently, continued production as a result of stockpiles built up prior to the commencement of the wet season," Kagara said in a statement.
"However, on 3 March, the road to Thalanga was closed due to heavy haulage and now the QDMR has advised that this closure may continue to the end of March."
As a result, Kagara revealed that copper production for the year would be approximately 27,000 tonnes, compared to the guidance of 30,000 tonnes as previously released.
Zinc and lead production has not been affected and is estimated to be 5 to 10 per cent above the guidance of 40,000 and 10,000 tonnes, respectively.
Kagara said management of stockpiles by personnel at the Mt Garnet operations had been challenging and the lack of access to the main road network had severely hampered the rebuilding of stockpiles.
Mining operations at Balcooma have not been affected, however, and substantial stockpiles are available to be transported once normal access to the road network has been restored, the company said.
