PanAust says it’s on track to meet full year production guidance of 64,000 tonnes of copper and 135,000 ounces of gold due to expanded processing.

The copper and gold producer, which has operations in South East Asia, said quarterly production at its flagship Phu Kham operation in Laos was 14,933 tonnes copper at a cash cost of $US1.22 ($A1.18) per pound after precious metal credits.

Cash costs for the nine months to September 30 averaged $US1.09 ($A1.06) per pound.

Phu Kham was operating at expanded processing rates at the end of the September quarter following completion of the Phu Kham Upgrade.

“Higher processing rates and a higher average copper head grade are expected to deliver a strong December quarter performance,” the company said in its third quarter report on Monday.

PanAust said the combined effect of scheduled higher ore grades and increased processing rates were expected to result in a sharp increase in copper production at Phu Kham for the December quarter 2012, following commissioning of the upgrade project.

The company also reported an “excellent performance” of the Ban Houayxai gold/silver operation, also in Laos, during September, reflecting steady performance that should be sustained for the rest of the 2012 year.

The company expects earnings before interest, tax depreciation and amortisation (EBITDA) to rise sharply during the December half, leading to full year earnings of about $US340 million ($A329.76 million).

Copper production at Phu Kham is expected to progressively increase over the next two years.

At September 30 the company had cash of $US98.5 million ($A95.53 million) and debt of $US85.0 million ($A82.44 million).

PanAust shares were up two cents at $3.30 on Monday.