Q1 Production Report 2017 and IMS

KAZ MINERALS GROUP Production Report for THE FIRST QUARTER Ended 31 MARCH 2017 AND INTERIM MANAGEMENT STATEMENT

  • Copper production1 increased by 16% to 52 kt in Q1 2017 (Q4 2016: 45 kt) as new mines ramp up
  • On track to meet 2017 production guidance for all metals
  • Bozshakol
    • 23 kt copper production2 (Q4 2016: 21 kt)
    • Sulphide plant completed planned maintenance in January, higher throughput in March
    • Clay plant ramping up in line with expectations, processed 495 kt of ore in Q1
  • Aktogay
    • Sulphide concentrator commenced output in mid-February, 7 kt copper production2 in Q1
    • Copper in concentrate output benefitted from high grade in transitional zone
    • SX/EW cathode output of 5 kt (Q4 2016: 6 kt), seasonal impact of cold weather
  • East Region and Bozymchak
    • Copper production2 of 17 kt (Q4 2016: 18 kt)
    • Volumes supported by processing of stockpiled ore from Yubileyno-Snegirikhinsky mine
    • By-product output on track for full year guidance
  • Financial update
    • Net debt of $2,550 million at 31 March 2017, $1,098 million of funds available
    • Q1 financial position supported by limited project spend and refund of project VAT
    • 2017 project expenditure guidance for Aktogay reduced from $265 million to less than $200 million, due to commissioning efficiencies and operating synergies with Bozshakol
  1. Payable metal in concentrate and copper cathode from Aktogay oxide ore.
  2. Payable metal in concentrate.

Oleg Novachuk, Chief Executive, said: “I am pleased to report continued progress in the ramp up of our new mines, including an excellent first quarter of production from sulphide operations at Aktogay. The Aktogay concentrator commenced output in mid-February and has produced 7 kt of copper. KAZ Minerals is delivering industry-leading production growth as promised to the market and was amongst the lowest cost copper producers globally in 2016.”

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