Western Australian explorer and miner Kagara (KZL) said on Tuesday it will lose about 3,000 tonnes of copper production due to a series of prolonged rain events.
The company said the rain resulted in road closures and milling operations at the Thalanga copper concentrator located to the west of Charter Towers have been temporarily suspended.
As a result, the copper production for the year will be about 27,000 tonnes, compared to the guidance of 30,000 previously released.
Its main haulage routes, the Gregory Development Road 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,” the company said.
Kagara said zinc and lead production has not been affected and is estimated to be 5% to 10% above the guidance of 40,000 and 10,000 tonnes respectively.
Shares in KZL closed 8.6% or 46 cents down at $4.90, with more than 1.8 million shares changing hands.
Kagara is a low-cost producer of zinc and copper concentrates in the Mt Garnet-Chillagoe area, North Queensland.
It has three base metal processing facilities in operation at Mt Garnet and Thalanga, with a fourth under development at Mungana.
Shares in KZL fell 9.3% to $4.86.
