Kazakhstan’s mining giant, Kazcink, has reported a decline in profitability for the first half of 2026, despite an increase in revenue. According to the financial report from Glencore, the Anglo-Swiss commodity group that controls nearly 70% of Kazcink’s shares, the company’s adjusted EBIT fell to $301 million, down from $387 million during the same period last year. Revenue for the first half of 2026 reached $2.458 billion, a slight increase from $2.393 billion in the first half of 2025.
The increase in revenue can be attributed to higher prices for key metals produced by Kazcink, including zinc and gold, although gold prices have seen a slight decline since early spring. However, the company experienced a reduction in production volumes for both its own and third-party zinc, with a more significant drop in precious metal output. Additionally, a new progressive mineral extraction tax (NDT) on gold, based on price levels, is expected to further impact Kazcink’s profitability this year.
Kazcink’s adjusted EBITDA for the reporting period was $588 million, significantly lower than the $708 million reported in the same timeframe last year. The company’s depreciation costs also decreased to $287 million from $321 million in the previous year. Furthermore, capital expenditures saw a dramatic reduction of over 50%, falling to $145 million compared to $340 million in the first half of 2025.
Glencore’s report highlighted a recovery from a $99 million impairment on the Zhairem project, reflecting improved operational performance and more optimistic price forecasts for zinc. In contrast, the Zhairem mining and processing plant reported a loss of $25 million last year, despite generating $307 million in sales.
Overall, Glencore’s financial performance for the first half of 2026 was robust, with a net profit of $4.4 billion and a nearly twofold increase in adjusted EBITDA to $10.12 billion. The adjusted EBIT surged 3.7 times to $6.65 billion. In 2025, Kazcink reported a net profit of $771 million on revenues of $5.069 billion, indicating a challenging year ahead for the company amidst fluctuating metal prices and production challenges.
