Month: December 2016

Total Voting Rights

In conformity with the Disclosure and Transparency Rules (“the Rules”), the Company hereby notifies the market of the following:

At the date of this announcement, the issued capital of the Company comprises 458,379,033 ordinary shares.

The Company currently holds 11,687,056 ordinary shares in treasury and therefore the issued share capital of the Company which carries voting rights of one vote per share comprises 446,691,977 ordinary shares (excluding treasury shares).

The above figure of 446,691,977 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Rules.

For further information, please contact:

Susanna Freeman

Company Secretary

Tel: + 44 (0)20 7901 7826

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Notification of Transactions of Directors, Persons Discharging Managerial Responsibility or Connected Persons

New $300 million credit facility with Development Bank of Kazakhstan and PXF update

KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces that it has reached agreement on a new $300 million credit facility with the Development Bank of Kazakhstan JSC (“DBK”) which is scheduled to be signed on 14 December 2016.

The DBK facility will finance the completion of the Aktogay project which began commissioning of its main sulphide concentrator on 6 December 2016. The facility is expected to be fully drawn before the year-end and extends for a term of 8.5 years until final maturity in June 2025. The loan is repayable in instalments with the first repayment due in June 2018, followed by semi-annual repayments in May and November of each year from 2019 until 2024 and a final repayment in June 2025. The facility bears an interest rate of US dollar LIBOR +4.50% and contains a financial covenant which is the same as the Group’s loan facilities with the China Development Bank, based on a ratio of total liabilities to total assets, with adjustments to mitigate the translation impact of movements in the US dollar/tenge exchange rate.

The Group also announces that an increased commitment by ING Bank N.V. in the Pre-export finance facility (“PXF”) has been agreed for an additional $50 million under the accordion feature. The additional commitment is expected to be drawn before the year-end. The total amount outstanding under the PXF as at 31 December 2016, including the additional drawing, is expected to be approximately $283 million. As previously announced, the Group intends to resume discussions with the PXF bank syndicate over a longer-term refinancing of the facility, after release of its 2016 financial statements.

Following the previously announced waiver obtained from the PXF lenders, the Group has also received a waiver from Caterpillar Financial Services (UK) Limited in relation to testing of the Net Debt to EBITDA covenant on 31 December 2016 under the $50 million CAT facility.

Andrew Southam, Chief Financial Officer of KAZ Minerals, said: “We are pleased to have secured a new, long-term facility of $300 million from the Development Bank of Kazakhstan and to have increased ING Bank N.V.’s participation in the PXF facility by $50 million, ahead of a planned refinancing in the first half of 2017. These transactions demonstrate the Group’s ability to access diversified sources of finance and the strong support KAZ Minerals enjoys from its lenders.”

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Holding(s) in Company

Aktogay Project Update

KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces that the testing and commissioning of the main Aktogay sulphide concentrator has commenced today. Production of saleable copper concentrate from sulphide ore is expected by the end of the first quarter of 2017. Production guidance for Aktogay in 2017 will be announced with the Group’s full year results on 23 February 2017.

The Aktogay project budget has been reviewed and reduced by $100 million to $2,100 million. The saving has been achieved through faster than anticipated progress in construction of the concentrator, a partial release of contingency and from the continued benefit of a local supplier strategy and sustained weak tenge.

The timing of the remaining capital payments has been updated, with certain payments previously expected in late 2016 now anticipated in early 2017 and $70 million relating to the expansion of oxide ore heap leach cells deferred to 2018.

The resulting capital expenditure profile for the project is expected to be approximately $100 million in H2 2016, $240 million in 2017 and $370 million in 2018. The $370 million guidance for 2018 includes $300 million of payments relating to work in 2016 and 2017 that was deferred under an agreement with the principal construction contractor in November 2015.

Oleg Novachuk, Chief Executive, said: “We are happy to be able to announce the start of commissioning activities at the Aktogay sulphide concentrator and a further reduction of $100 million in the project budget. We are now focused on ramping up production at Aktogay and Bozshakol to deliver industry-leading copper production growth.”

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