Month: February 2017

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 11,683,398 ordinary shares in treasury and therefore the issued share capital of the Company which carries voting rights of one vote per share comprises 446,695,635 ordinary shares (excluding treasury shares).

The above figure of 446,695,635 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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Preliminary Results 2016

KAZ MINERALS PLC AUDITED RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2016

 

FINANCIAL HIGHLIGHTS

  • Gross EBITDA1 of $492 million (2015: $208 million) driven by Bozshakol and Aktogay
    • EBITDA of $351 million (2015: $202 million), excludes pre-commercial earnings
    • Operating profit up 142% to $218 million (2015: $90 million)
  • Gross Revenues2 increase 43% to $969 million (2015: $677 million)
    • 2016 full year copper sales volumes of 141 kt (2015: 84 kt), offset 12% lower copper price
    • Revenues were $766 million (2015: $665 million)
  • Group net cash cost of 59 USc/lb (2015: 109 USc/lb)
    • Bozshakol gross cash cost of 106 USc/lb and net cash cost of 27 USc/lb, supported by lower costs in start-up period
    • East Region and Bozymchak gross cash cost of 191 USc/lb and net cash cost of 68 USc/lb (2015: 109 USc/lb)
  • Gross liquid funds of $1,108 million, net debt of $2,669 million at 31 December 2016
    • Aktogay project budget reduced by $200 million to $2.1 billion
    • $100 million of final payments at Bozshakol will now fall in 2017
    • New $300 million Development Bank of Kazakhstan facility and $50 million increase to PXF obtained in December 2016
    • Gearing metrics significantly improved and set to reduce further

 

OPERATIONAL HIGHLIGHTS

  • 73% growth in copper production to 140 kt
    • Bozshakol output of 45 kt copper cathode equivalent from 50 kt copper in concentrate in 2016
    • Aktogay output of 18 kt copper cathode from oxide ore, production from sulphide ore commenced in February 2017
    • Optimised Bozymchak mine tripled copper and gold production

 

2017 OUTLOOK

  • Industry leading production growth and low cost position to continue in 2017
    • Aktogay to reach commercial production and Bozshakol to reach design capacity in the year
    • Group copper production3 to increase to 225-260 kt, gold production3 135-170 koz
    • Zinc in concentrate expected to be 70-75 kt, silver production3 2,750-3,000 koz
    • Bozshakol and Aktogay 2017 gross cash cost guidance of 125-145 USc/lb
    • East Region and Bozymchak 2017 gross cash cost guidance of 230-250 USc/lb, impacted by lower copper volumes

 

 

$ million (unless otherwise stated)

2016

2015

Gross Revenues2

969

677

Gross EBITDA1,8

492

208

 

 

 

Revenues

 766

 665

EBITDA (excluding special items)8

 351

 202

Operating profit

218

90

Profit before taxation

220  

 12

Underlying Profit/(Loss)

180

 (10)

EPS – basic and diluted ($)

0.40

 (0.03)

EPS – based on Underlying Profit/(Loss) ($)4

 0.40

 (0.02)

 

 

 

Free Cash Flow5

(60)

 (145)

Free Cash Flow before interest

 119

 2

 

 

 

Gross cash cost (USc/lb)6

 156

 230

Net cash cost (USc/lb)7

 59

 109

 

 

 

Net debt

 2,669

 2,253

 

1  Includes EBITDA from pre-commercial operations.

2   Includes revenues from pre-commercial operations.

3   Copper, gold and silver production used for the 2017 guidance is payable metal in concentrate produced plus finished metal production.

4  Reconciliation of EPS based on Underlying Profit/(Loss) is found in note 8 in the financial information.

5  Net cash flow from operating activities before capital expenditure and non-current VAT associated with expansionary and new projects, less sustaining capital expenditure.

6  Cash operating costs, including pre-commercial production costs, excluding purchased cathode, divided by the volume of copper cathode equivalent sales.

7 Cash operating costs, including pre-commercial production costs, excluding purchased cathode, less by-product Gross Revenues, divided by the volume of copper cathode equivalent sales.

8 Reconciliation to operating profit provided in note 4(a)(i) in the financial information.

 

 

Oleg Novachuk, Chief Executive, said: “The successful launch of our major growth projects has increased copper output by 73% at an industry leading net cash cost of 59 USc/lb. Following the recent commencement of production at the Aktogay sulphide concentrator both Aktogay and Bozshakol are operational. KAZ Minerals is now well positioned to achieve its target of 300 kt of copper production in 2018, delivering significant copper growth with low operating costs into a strengthening market.”

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Notice of Preliminary Results 2016 – Analyst Presentation

 

KAZ Minerals PLC announced on 8 February 2017 that it will release its preliminary results for the year ended 31 December 2016 on Thursday 23 February 2017 at 7:00am (UK time) and that a presentation for analysts would be held at 9:00am (UK time).

The presentation for analysts will now commence at 9:45am (UK time). All other details remain unchanged, as set out below.

The presentation will be held in the Theatre & Theatre Gallery at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS and can also be accessed by conference call. The dial-in details are as follows:

Telephone: +44 (0) 20 3003 2666

Please quote the password: KAZ Minerals

A webcast of the presentation will be available on the KAZ Minerals website (www.kazminerals.com).

PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ANNOUNCEMENT

 

Aktogay commences production of copper concentrate

KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces that it has produced its first saleable copper concentrate from sulphide ore at the Aktogay project, consistent with the Group’s most recent guidance for output to commence in the first quarter of 2017. Shipments of concentrate from Aktogay are expected to begin imminently.

The Aktogay sulphide concentrator will now ramp up with the target of achieving commercial levels of output in the second half of 2017. Production guidance for Aktogay in 2017 will be issued along with the Group’s full year results announcement on 23 February 2017.

Oleg Novachuk, Chief Executive, said: “I am delighted to be able to announce the commencement of copper concentrate output from sulphide ore at Aktogay. Both of the Group’s major growth projects are now fully operational. Our production continues to grow strongly and is on track to reach 300 kt of copper per annum by 2018, with around 80% coming from our new low cost, open pit mines.”

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Notice of Preliminary Results for the Year Ended 31 December 2016

KAZ Minerals PLC will announce its preliminary results for the year ended 31 December 2016 on Thursday 23 February 2017 at 7.00am (UK time).

A presentation for analysts will be held in the Theatre & Theatre Gallery at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS on Thursday 23 February 2017 at 9.00am (UK time).

The presentation for analysts can also be accessed by conference call on Thursday 23 February 2017 at 9.00am (UK time). The dial-in details are as follows:

Telephone: +44 (0) 20 3003 2666

Please quote the password: KAZ Minerals

A webcast of the presentation for analysts will also be available on the KAZ Minerals website (www.kazminerals.com). 

PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ANNOUNCEMENT