Australia's Kagara Zinc Ltd said on Monday it beat internal targets to produce more zinc and lead in the fourth quarter after upgrading an ore treatment plant. Kagara, which last year cancelled costly plans to build a new plant in favour of modifying an old one, said zinc in concentrate output rose 30 percent to 12,465 tonnes in the three months to end-December over the previous quarter.
Output of lead in concentrate increased 31 percent over the period to 3,993 tonnes, it said.
"Production of the December quarter was a record 33,392 tonnes of total concentrates, which was slightly in excess of the anticipated output from the upgraded treatment plant," Kagara said.
Zinc is used as an anti-corrosive in galvanised steel. Lead is a key ingredient in batteries.
Kagara mines in Queensland state in eastern Australia and sells its concentrate - ground ore - exclusively to Korea Zinc Co Ltd's nearby Sun Metals Corp refinery. Zinc sells for about US $1,290 a tonne at the London Metal Exchange, up around 25 percent from a year ago. Lead fetches $940 a tonne, also up around 25 percent from a year ago.
Kagara shares closed 2.6 percent higher at A$1.16 cents, outpacing gains in the wider market
The stock has jumped more than 23 percent since January 12, helped by strong Chinese demand that has prompted talk of a widening global zinc supply deficit this year.
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