Laos-focused miner PanAust expects higher copper output this year but production costs should rise as it upgrades the processing plant at its flagship Phu Kham mine.

Brisbane-headquartered PanAust produced almost 60,000 tonnes of copper-in-concentrate at Phu Kham in calendar 2011.

This was in line with guidance despite severe rainfall mid-year that hampered access to higher-grade ores.

PanAust is upgrading Phu Kham at a cost of $US95 million ($A90.45 million), allowing ore processing rates to increase and is timed to coincide with an expected fall in ore-head grades this year.

The company forecast a lift in output in 2012 to between 63,000 and 65,000 tonnes of copper-in-concentrate, although production costs may rise by up to 14 per cent.

It also reported unaudited earnings before interest, tax, depreciation and amortisation (EBITDA) for 2011 of $US285 million ($A271.34 million), ahead of the release of its full year financial results in February.

Earnings this calendar year were expected to be between $US340 million ($A323.70 million) and $US400 million ($A380.83 million), assuming copper prices of between $US3.50 per pound and $US4.00/lb.

The copper price is currently about $US3.79/lb.

The company’s second mine, Ban Houayxai in Laos, is being commissioned and is on track to produce first gold in March, managing director Gary Stafford told a teleconference on Tuesday.

The gold and silver mine is almost complete and is expected to have cost between $US183 million ($A174.23 million) and $US195 million ($A185.65 million) to develop, PanAust said in a statement.

The company also said a feasibility study for its planned third mine, the Inca de Oro copper and gold project in Chile, was on schedule for completion in mid-2012, PanAust said.

Shares in PanAust were down 11.5 cents, or 3.08 per cent, at $3.615 at 1514 AEST.