Notice of the Preliminary Results for the Year Ended 31 December 2015

KAZ Minerals PLC will announce its preliminary results for the year ended 31 December 2015 on Thursday 25 February 2016 at 7.00am (UK time).

A presentation for analysts will be held in room 149/150 at Linklaters LLP, One Silk Street, London EC2Y 8HQ at 9.00am (UK time).

The presentation for analysts can also be accessed by conference call at 9.00am (UK time). The dialin 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).

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Contractor Payment Deferral

KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces that it has reached agreement with its principal construction contractor, Non Ferrous China (“NFC”), to defer payment of $300 million relating to the Group’s Aktogay project. Under the revised terms, $300 million of construction costs which were scheduled to be paid in 2016 and 2017 will be settled in the first half of 2018. There is no change to the overall amount payable to NFC or the project budget of $2.3 billion. Aktogay remains on-track to commence production from oxide ore in 2015 and production from sulphide ore in 2017.

Oleg Novachuk, Chief Executive, said: “The deferral of $300 million to 2018 provides KAZ Minerals with additional liquidity during the construction and ramp up of Bozshakol and Aktogay. This agreement also demonstrates the strength of our relationship with NFC and continues our strong track record of securing support from our partners in China for these strategically important copper projects.”

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Half-Yearly Results 2015

Kaz minerals PLC HALF-YEARLY REPORT

FOR THE PERIOD ENDED 30 June 2015

FINANCIAL HIGHLIGHTS

  • EBITDA of $88 million, excludes $6 million capitalised contribution from Bozymchak
  • East Region EBITDA of $109 million
  • Strong operating cost management
  • Gross cash cost of 270 USc/lb versus previous guidance of 280-300 USc/lb
  • Full year gross cash cost guidance reduced to 260-280 USc/lb
  • East Region achieved competitive net cash cost of 125 USc/lb
  • Positive operating cash flow
  • Free Cash Flow before interest of $30 million
  • Sustaining capital expenditure limited to $25 million
  • Significant liquidity
  • Funds available of $2,210 million at 30 June 2015: $1,460 million of cash and $750 million of undrawn facilities
  • $50 million revolving credit facility signed with Caterpillar in August 2015
  • Net debt $1,589 million as at 30 June 2015

OPERATIONAL HIGHLIGHTS

  • Solid first half output
  • Underlying copper in concentrate production of 43 kt
  • On-track to achieve 2015 cathode production target of 80-85 kt
  • Zinc and silver output to achieve top end of guidance range

MAJOR GROWTH PROJECTS

  • Bozshakol
  • Fire on 14 August 2015 currently expected to result in commissioning commencing in the first quarter of 2016 with no change to the capital budget
  • Installation of processing equipment largely complete, now in testing phase
  • Pit fully dewatered, pre-production mining activities underway
  • Aktogay
  • 1,075 kt of oxide ore with grade of 0.35% extracted and placed on pads as at 31 July
  • SX/EW processing facilities close to completion ahead of first cathode production in the fourth quarter
  • Sulphide plant construction proceeding on schedule for 2017 start up

OUTLOOK

  • Launch of growth projects, 2015 copper guidance maintained
  • Initial production from Aktogay oxide in 2015
  • Repairs to be undertaken at Bozshakol whilst continuing final construction and testing work
  • Close control of costs and sustaining capital expenditure
  • Release of smelter work in progress to support cathode production in second half

Oleg Novachuk, Chief Executive, said: “Bozshakol and Aktogay progressed well in the first half of 2015, with pre-production mining activities underway and Aktogay on course for initial copper cathode production from oxide ore later this year. At Bozshakol, our preliminary assessment following the fire that occurred in the concentrator building on 14 August is that commissioning is currently expected to be delayed to the first quarter of 2016, with no change to the capital budget. As a result of the East Region’s solid operational performance and cost control measures we are on track to achieve our full year copper production guidance at a reduced gross cash cost.”

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New revolving credit facility

KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces the signing of a new $50 million revolving credit facility (“RCF”) with Caterpillar Financial Services (UK) Limited (“Cat Financial”), a subsidiary of Caterpillar Inc.. Caterpillar Inc. is a major supplier of mining equipment to the Group’s Bozshakol and Aktogay projects.

The RCF is available for drawing for three years from the date of signing, following which the facility is repayable in four equal quarterly instalments. An interest rate of USD LIBOR plus 4.25% is payable on amounts outstanding under the RCF. The financial covenants on the RCF are identical to those applicable to the Group’s existing pre-export finance facility.

Andrew Southam, Chief Financial Officer, said: “This new facility with Cat Financial provides KAZ Minerals with additional liquidity during the construction and ramp-up of our major growth projects and broadens the Group’s debt portfolio.”

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Notice of 2015 Half-Yearly Results

KAZ Minerals PLC will announce its half-yearly results for the six months ended 30 June 2015 on Thursday 20 August 2015 at 7.00am (UK time).

A presentation for analysts will be held in the Theatre at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS at 9.15am (UK time).

The presentation for analysts can also be accessed by conference call at 9.15am (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

 

Preliminary Results 2014

KAZ MINERALS PLC AUDITED results for the year ENDED 31 December 2014 

  • Restructuring completed 31 October 2014
  • Disposal Assets transferred to Cuprum Holding
  • Company re-named KAZ Minerals PLC
  • Repositioned as a low cost, high growth copper miner
  • Operational highlights – continuing operations
  • Copper cathode production +9% to 83.5 kt, upper end of guidance (2013: 76.8 kt)
  • Silver and zinc by-products in line or ahead of guidance
  • First shipment of concentrate from Bozymchak copper-gold project
  • Financial highlights – continuing operations
  • EBITDA from continuing operations (excluding special items) $355 million (2013: $359 million), with cost measures offsetting lower revenues
  • H2 2014 net cash cost of 107 USc/lb benefiting from the tenge devaluation, strong cost management and zinc by-product credits
  • Balance sheet
  • Received $1.25 billion proceeds from sale of stake in Ekibastuz GRES-1
  • Refinanced PXF facility, fully drawn at $349 million
  • Year end net debt $962 million
  • Undrawn facilities of $798 million and gross funds of $2,130 million as at 31 December 2014
  • Major growth projects on track
  • Bozshakol expected to commence commissioning with limited production in the fourth quarter of 2015
  • Capital expenditure in 2014 $0.5 billion, remaining $0.9 billion to be spent in 2015
  • Aktogay oxide on course for production in the fourth quarter of 2015, sulphide in 2017
  • Capital expenditure $0.4 billion in 2014, expenditure in 2015 expected to be $0.5-$0.7 billion
  • Acquired Koksay, our third major growth project for total consideration of $260 million including $35 million deferred to 2015
  • 2015 outlook
  • 2015 copper cathode production guidance for East Region and Bozymchak 80-85 kt
  • By-product grades expected to be temporarily lower in East Region
  • 2015 gross cash cost guidance of 280–300 USc/lb for operating mines

Oleg Novachuk, CEO said: “2014 was a year of transformational change for the Group. We successfully completed our Restructuring in October 2014 and this has repositioned KAZ Minerals on the global cost curve, retaining a portfolio of first and second quartile operating and development assets. We are excited to be entering the final stages of the construction of Bozshakol, the first of our major growth projects, and continuing the development of Aktogay. We anticipate the copper market will return to deficit as we ramp up output from our major growth projects.”

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Notice of Preliminary Results 2014

NOTICE OF PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014

KAZ Minerals PLC will announce its preliminary results for the year ended 31 December 2014 on Thursday 26 February 2015 at 7.00am (UK time).

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

The presentation for analysts can also be accessed by conference call 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

 

Amendment to CDB facilities

KAZ Minerals PLC (“KAZ Minerals” or “the Group”) has signed an amendment to its existing $2.3 billion debt facilities with China Development Bank Corporation (“CDB”) and Joint Stock Company “Sovereign Wealth Fund “Samruk-Kazyna” (“Samruk-Kazyna”) obtained principally for the development of the Bozshakol and Bozymchak projects. Key changes to the terms of the amended facilities are as follows: 

  • The facilities will become bilateral between KAZ Minerals and the CDB
  • Interest rate lowered from USD LIBOR plus 4.80% to USD LIBOR plus 4.50%
  • Arrangement fee of 0.5%, 60% payable in December 2014 and 40% payable in January 2016
  • Balance sheet covenants aligned with those applicable to the $1.5 billion Aktogay CDB facilities, which include adjustments to mitigate the translation impact of movements in the US dollar/tenge exchange rate

As at 30 November 2014, the principal balance outstanding on the facilities was $2,086 million. Repayment of the previous facilities with Samruk-Kazyna and drawing of the new facilities directly from CDB is expected to occur during Q1 2015. All other material terms of the facilities, including the repayment schedule and final maturity, remain unchanged.

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