Month: January 2021

Q4 2020 Production Report

KAZ MINERALS GROUP Production Report for twelve months and THE fourth QUARTER Ended 31 DECEMBER 2020

  • Full year copper production1 of 305.7 kt (FY 2019: 311.4 kt), 2% above guidance range with strong performance at all divisions
    • Copper sales of 300.4 kt (FY 2019: 316.9 kt). Sales were below production volumes due to year end shipment delays at Kazakhstan-China border
    • Q4 copper production1 of 75.7 kt (Q3 2020: 76.2 kt) with scheduled maintenance completed efficiently
    • Full year gold production2 of 196.3 koz (FY 2019: 201.5 koz) supported gold sales of 204.6 koz (FY 2019: 225.0 koz). December production impacted by low grade and recovery at Bozshakol and suspension of Bozymchak, however sales exceeded production following release of inventory
  • Aktogay
    • Full year copper production1 of 131.2 kt (FY 2019: 145.7 kt) exceeded guidance of 120-130 kt
    • Q4 copper production1 in line with previous quarter at 31.9 kt (Q3 2020: 31.7 kt) as higher sulphide ore throughput was offset by seasonally lower oxide output
  • Bozshakol
    • Full year copper production2 increased by 11% to 122.0 kt (FY 2019: 110.2 kt), above guidance of 110-120 kt supported by higher average grades and ore throughput
    • Copper production2 in Q4 of 31.3 kt (Q3 2020: 30.3 kt) as higher grades more than offset lower throughput due to scheduled maintenance
    • Gold production2 in 2020 of 151.7 koz (FY 2019: 144.8 koz) above guidance of 140-150 koz due to increased ore processing
    • Q4 gold production2 decreased to 31.4 koz (Q3 2020: 37.0 koz) impacted by scheduled maintenance, lower than expected grades and associated recovery rates
  • East Region and Bozymchak
    • Full year copper production2 of 52.5 kt (FY 2019: 55.5 kt) above guidance of c.50 kt
    • Q4 copper production2 decreased by 12% to 12.5 kt (Q3 2020: 14.2 kt) mainly due to the temporary suspension of operations at Bozymchak in the quarter
    • Full year by-product output in line with guidance with gold production2 of 44.0 koz (FY 2019: 53.7 koz), silver production2 of 1,946 koz (FY 2019: 2,024 koz) and zinc in concentrate output of 49.7 kt (FY 2019: 38.3 kt)
    • Bozymchak mine restarted operations on 26 December after a temporary suspension from 7 October following political instability in Kyrgyzstan
  • Covid-19
    • Ensuring the safety, health and wellbeing of employees and contractors is the Group’s first priority
    • Comprehensive measures, including testing and isolation, remain in place to protect staff and mitigate the risk of disruption to operations
    • These measures ensured that there was no major impact to the Group’s operations in Q4 resulting from Covid-19, other than minor delays to shipments to and from China
Group production summary3 12m 2020 12m

2019

 Q4 2020 Q3 2020 Q4 2019
Copper production1 kt 305.7 311.4 75.7  76.2 80.9
Aktogay kt 131.2 145.7 31.9  31.7 34.3
Bozshakol kt 122.0 110.2 31.3  30.3 31.0
East Region & Bozymchak kt 52.5 55.5 12.5  14.2 15.6
Gold production2 koz 196.3 201.5 35.9  50.7 55.3
Silver production2 koz 3,374 3,382 732  901 886
Zinc in concentrate kt 49.7 38.3 10.2  15.7 9.4

1. Payable metal in concentrate and copper cathode from Aktogay oxide ore.
2. Payable metal in concentrate.
3. See appendix for metal production by asset.

Andrew Southam, Chief Executive Officer, said: “In the face of challenges posed by Covid-19 we took steps to protect our staff and operations and I am proud of the Group’s performance in such difficult circumstances. KAZ Minerals delivered strong production in the fourth quarter and achieved record sulphide ore processing volumes of 59.2 million tonnes in 2020, supporting copper production of 306 kt which was above the 2020 guidance range.”

For further information please contact:

KAZ Minerals PLC

Chris Bucknall Investor Relations, London Tel: +44 20 7901 7882
Anna Mallere Investor Relations, London Tel: +44 20 7901 7814
Maksut Zhapabayev Corporate Communications, Almaty Tel: +7 727 244 03 53
Brunswick Group
Carole Cable, Charlie Pretzlik Tel: +44 20 7404 5959

REGISTERED OFFICE

6th Floor, Cardinal Place, 100 Victoria Street, London SW1E 5JL, United Kingdom.

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Update on Satisfaction of Regulatory Conditions

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

11 January 2021

RECOMMENDED CASH ACQUISITION

of

KAZ MINERALS PLC

by

NOVA RESOURCES B.V.
(a company indirectly owned by joint offerors (i) Oleg Novachuk and (ii) Vladimir Kim)

Update on Satisfaction of Regulatory Conditions

As set out in the announcement of 7 December 2020 that the Acquisition is to be implemented by way of a takeover offer (the “Switch Announcement“), the Acquisition is subject to the satisfaction of a number of Conditions, including certain antitrust and regulatory conditions as set out in Conditions 1(b) to 1(h) of Part A of Appendix 1 to the Switch Announcement (the “Regulatory Conditions”). Bidco is pleased to announce significant progress has been made in respect of the satisfaction of the Regulatory Conditions since the date of the Switch Announcement with Bidco now having received:

  • clearance from the State Administration for Market Regulation of the PRC, confirming that it will not conduct a further review of the Acquisition and approving the implementation of the Acquisition;
  • clearance from the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan permitting the Acquisition and the transfer of subsoil use rights related objects pursuant to the Kazakh Subsoil Code to Bidco; and
  • a decision from the Prime Minister of the Kyrgz Republic confirming that the Government of the Kyrgyz Republic waives its pre-emption rights in relation to the Acquisition, pursuant to the Law of Kyrgyzstan on Strategic Assets.

Accordingly, the Regulatory Conditions set out in paragraphs 1(b), (g) and (h) of Part A of Appendix 1 to the Switch Announcement have each been satisfied.

The Acquisition remains conditional on the satisfaction of the acceptance condition and the remaining Regulatory Conditions and other Conditions set out in Appendix 1 to the Switch Announcement. As set out in the Switch Announcement, it is anticipated that Bidco will post the Offer Document to KAZ Minerals Shareholders on or before 4 February 2021.

Defined terms used but not defined in this announcement have the meaning ascribed to them in the Switch Announcement.

Enquiries
Bidco / VTB Capital (Financial adviser to Bidco)
Alexander Metherell +44 (0) 20 3334 8000
Giles Coffey
Elena Loseva

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Total Voting Rights

In conformity with 5.6.1R of the Disclosure Guidance and Transparency Rules (“the Rules”), the Company hereby notifies the market of the following:

At the date of this announcement, the total issued share capital of the Company comprises 480,723,977 ordinary shares.

The Company currently holds 8,238,821 ordinary shares in treasury and therefore the issued share capital of the Company which carries voting rights of one vote per share comprises 472,485,156 ordinary shares (excluding treasury shares). 

The above figure of 472,485,156 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.

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