Q2 Production Report 2017

KAZ MINERALS GROUP Production Report for six months and THE second QUARTER Ended 30 June 2017

  • H1 2017 copper production1 more than doubled to 118 kt (H1 2016: 56 kt), on track for full year guidance of 225-260 kt
  • Ramp up of new operations continues to deliver quarterly growth in copper production, Q2 2017: 66 kt (Q1 2017: 52 kt)
  • Strong first half gold output of 93 koz (H1 2016: 45 koz)
  • Bozshakol on track to achieve 2017 copper guidance and top end of gold guidance
    • H1 2017 copper production2 of 52 kt (H1 2016: 10 kt) and gold production2 of 63 koz (H1 2016: 12 koz), lower gold grades expected in H2
    • Sulphide plant at 93% of design ore throughput in Q2, full capacity expected in H2 2017
    • Clay plant continuing to ramp up in line with expectations, ore throughput at 69% in Q2
  • Aktogay ramp up progressing well
    • Copper production1 of 33 kt in H1 2017 (H1 2016: 5 kt)
    • Sulphide copper production2 increased to 15 kt in Q2 (Q1 2017: 7 kt)
    • Concentrator ramping up faster than Bozshakol due to experience gained at identical operations and benefit of high grade supergene ore
    • On course to achieve 2017 guidance of 65-85 kt as concentrator ramps up to commercial levels in H2
  • East Region and Bozymchak on track for copper production target
    • Copper production2 of 33 kt in H1 2017 (H1 2016: 41 kt)
    • H1 zinc in concentrate production of 32 kt (H1 2016: 40 kt)
    • Full year gold and silver production expected to be towards the upper end of guidance
  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 good progress in the ramp up of the new sulphide concentrator at Aktogay and a strong operational performance from our other assets. At Bozshakol, we expect to achieve 100% of design capacity in the second half of this year as planned. The operational performance has had a positive impact on unit costs supported by limited domestic inflation, with Aktogay and the East Region currently tracking below the guided full year cost range.”

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