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KazakhGold to invest $300 mln to boost output

KazakhGold Group Ltd., a London-listed miner of gold in Kazakhstan, plans to invest $300 mln through next year boosting output at its three mines and preparing to open two more.

About $75 million of the planned investment will come from a share sale in London, KazakhGold Vice President Aidar Asaubaev told an investment conference organized by the ratings company Fitch today in Almaty, Kazakhstan's commercial capital. The planned investment includes $200 million the company raised selling bonds in October and the rest will come from operations, Asaubaev said. Asaubaev told the conference that the two-year investment total would be $350 million, though he revised the figure to $300 million in a later interview today. The stock fell 6% to $21.80 at 2 p.m. in London, valuing the St. Helier, Jersey-based company at $1.03 billion. KazakhGold produced 45,986 ounces of the metal in the Q4. Full-year output more than tripled to 219,853 ounces. KazakhGold issued a statement through the Regulatory News Service after the Fitch conference saying Asaubaev's comments were „general in nature and did not relate to any specific plans.” (Bloomberg)