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Kaz minerals PLC HALF-YEARLY REPORT
FOR THE PERIOD ENDED 30 June 2017
OPERATIONAL HIGHLIGHTS
- Copper output more than doubled to 118 kt in the first half of 2017
- Aktogay ramp up progressing well, Bozshakol expected to achieve full capacity in second half
- By-products on track to meet or exceed 2017 guidance
FINANCIAL HIGHLIGHTS
- Gross Revenues1 increased by 2.3 times, to $837 million (H1 2016: $363 million) on higher volumes and commodity prices
- Revenues of $721 million, excluding pre-commercial sales (H1 2016: $302 million)
- Gross EBITDA1 of $505 million (H1 2016: $147 million) driven by increased revenues and low operating costs
- EBITDA1 of $429 million, excluding pre-commercial earnings (H1 2016: $115 million)
- Operating profit of $291 million (H1 2016: $68 million)
- Net cash cost1 of 64 USc/lb, maintained position amongst the lowest cost copper producers globally
- Bozshakol full year gross cash cost1 now expected to be 115-135 USc/lb
- Aktogay guidance reduced to 110-130 USc/lb following strong first half performance
- East Region and Bozymchak guidance now set at 205-225 USc/lb
FINANCIAL POSITION
- Net debt1 reduced to $2,442 million at 30 June 2017 (31 December 2016: $2,669 million), supported by higher operating cash flows, lower capital expenditure and refund of project VAT of $176 million
- Available liquidity of $1,563 million, including $1,223 million of cash and cash equivalents and $340 million available for drawing
- New $600 million PXF facility
- Gearing levels reducing rapidly
OUTLOOK
- Full year copper production target narrowed to 235-260 kt
- Aktogay sulphide to achieve commercial production and Bozshakol to reach design capacity in second half
- KAZ Minerals is delivering copper growth into a tightening market
|
$ million (unless otherwise stated) |
Six months ended 30 June 2017 |
Six months ended 30 June 2016 |
|
Gross Revenues1,2 |
837 |
363 |
|
Gross EBITDA1,2,3 |
505 |
147 |
|
|
|
|
|
Revenues |
721 |
302 |
|
EBITDA (excluding special items)1,3 |
429 |
115 |
|
|
|
|
|
Operating profit |
291 |
68 |
|
Profit before tax |
240 |
91 |
|
Underlying Profit1 |
195 |
76 |
|
EPS – basic and diluted ($) |
0.41 |
0.16 |
|
EPS – based on Underlying Profit ($)1,4 |
0.44 |
0.17 |
|
|
|
|
|
Net cash flows from/(used in) operating activities |
337 |
(63) |
|
Free Cash Flow1 |
155 |
(65) |
|
Free Cash Flow before interest1 |
269 |
20 |
|
|
|
|
|
Gross cash cost (USc/lb)1,2 |
144 |
173 |
|
Net cash cost (USc/lb)1,2 |
64 |
78 |
|
|
|
|
|
Cash and cash equivalents |
1,223 |
1,056 |
|
Net debt1 |
2,442 |
2,531 |
1 These metrics, used throughout this document, are non-IFRS measures that the Directors use internally to assess the financial performance of the Group. See glossary for definitions.
2 Includes operations during the period prior to commercial production.
3 Reconciliation to operating profit provided in note 4(a)(i) in the financial information.
4 Reconciliation of EPS based on Underlying Profit/(Loss) is found in note 8 in the financial information.
Oleg Novachuk, Chief Executive, said: “I am delighted that the successful delivery of our two growth projects has been reflected in our operating and financial results. We have doubled copper production whilst maintaining our position amongst the lowest cost copper producers globally. This strong performance has resulted in a reduction in our gearing levels, with net debt falling and over half a billion dollars of Gross EBITDA generated in the first half of 2017. We aim to complete the final stages of ramping up Bozshakol this year and Aktogay in 2018, supported by an improved outlook for copper.”