KAZ MINERALS GROUP Production Report for the first quarter Ended 31 march 2021

• Highlights
  • Group copper production¹ of 72.4 kt (Q4 2020: 75.7 kt), on track to achieve annual guidance of 275-295 kt
  • Gold production² of 39.9 koz (Q4 2020: 35.9 koz) as Bozymchak contributed for the full quarter following the restart of operations in December 2020
  • Net debt of $2,410 million (31 December 2020: $2,601 million) with $62 million of undrawn facilities and gross liquid funds of $1,298 million (31 December 2020: $1,299 million)
• Covid-19 update
  • Ensuring the safety, health and wellbeing of employees and contractors remains the Group’s 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 Q1 resulting from Covid-19, other than minor delays to shipments across the Kazakhstan-China border

• Aktogay
  • Q1 copper production¹ rose to 33.9 kt (Q4 2020: 31.9 kt) due to increased ore throughput and a higher average recovery rate
  • Copper cathode production from oxide ore decreased to 3.3 kt (Q4 2020: 4.6 kt) due to lower ambient temperatures and maintenance
• Bozshakol
  • Copper production² reduced to 26.3 kt (Q4 2020: 31.3 kt) due to a lower ore throughput as a result of maintenance at the concentrators combined with lower average grades and recovery rate
  • Gold production² of 26.2 koz (Q4 2020: 31.4 koz) impacted by reduced ore processed volumes and lower average
    grades and recovery rate
• East Region and Bozymchak
  • Copper production² of 12.2 kt (Q4 2020: 12.5 kt) as lower grade material was processed
  • Gold production² of 13.7 koz (Q4 2020: 4.5 koz) following the restart of operations at the Bozymchak mine
  • Silver production of 431 koz (Q4 2020: 362 koz) and zinc in concentrate output of 9.6 kt (Q4 2020: 10.2 kt)  

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: “The Group has delivered another strong quarter, with copper production of 72 kt, and is on track to achieve the full year guidance for all metals.” 

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As previously announced, the Baimskaya project is located in a Territory of Accelerated Social and Economic Development (“TASED”) and is therefore eligible for certain tax incentives to encourage investment. KAZ Minerals has today signed an agreement in a public ceremony with the Far East Development Corporation JSC, wholly owned by the Ministry for the Development of the Russian Far East and Arctic, which confirms TASED residency for the Baimskaya project. Securing the TASED status is consistent with the Group’s assumptions when acquiring Baimskaya in January 2019 and with the project parameters update provided in November 2020.

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WATCH THE WEBCAST

STRONG FULL YEAR PERFORMANCE IN A CHALLENGING OPERATING ENVIRONMENT

FINANCIAL HIGHLIGHTS

• Revenues increased by 4% to $2,355 million (2019: $2,266 million) as higher commodity prices offset lower production and sales volumes
  • Copper sales of 300 kt (2019: 317 kt) below production of 306 kt (2019: 311 kt) due to year end shipment delays at Kazakhstan-China border
  • Gold sales of 205 koz (2019: 225 koz) above production of 196 koz (2019: 201 koz) following inventory release
• EBITDA¹ of $1,431 million representing a margin of 61% (2019: $1,355 million, 60% margin)
• Operating profit increased by 9% to $1,005 million (2019: $923 million)
• Strong cash generation due to higher net cash flows from operating activities of $807 million (2019: $512 million)
• First quartile net cash cost¹ of 64 USc/lb (2019: 77 USc/lb) as the benefit of a weaker tenge and strong by‑product revenues offset the impact of lower sales volumes and additional costs for Covid-19

FINANCIAL POSITION AND DIVIDEND

• Gross liquid funds¹ of $1,299 million (2019: $541 million) and borrowings of $3,900 million (2019: $3,300 million). $62 million (2019: $306 million) of undrawn facilities
• Net debt¹ reduced by $158 million to $2,601 million (2019: $2,759 million)
• No final dividend due to Recommended Offer

OPERATIONAL & PROJECT HIGHLIGHTS

• Full year copper production²of 306 kt (2019: 311 kt) and gold production³ of 196 koz (2019: 201 koz) with strong performance at all divisions, despite challenges presented by Covid-19

• 2021 copper production² guided at 275-295 kt as grades decline in line with mine plans at Aktogay and Bozshakol
• Aktogay expansion project remains on track to start up by the end of 2021

• Key project parameters for Baimskaya released in November 2020

COVID-19 RESPONSE

• Ensuring the safety, health and wellbeing of employees and contractors is the highest priority
• Comprehensive measures remain in place to protect staff and operations, including testing and isolation of personnel and increased stocking of spares and consumables
• Additional costs of around $40 million incurred in the year to protect sites from Covid-19
• Support has been provided to vulnerable communities in the Group’s countries of operation

1  Alternative Performance Measures (“APMs”) are used to assess the performance of the Group and are not defined or specified under IFRS. For further information on APMs, including justification for their use, please refer to the APMs section on page 58.

2  Payable metal in concentrate and copper cathode from Aktogay oxide ore.

3  Payable metal in concentrate.

4  The financial results are prepared in accordance with IFRSs and are unaudited – see page 37 for further information.

Andrew Southam, Chief Executive Officer, said: “KAZ Minerals’ operations proved resilient in 2020, despite the challenges posed by Covid-19. The Group delivered strong production, which combined with improved commodity prices in the second half of the year, saw the Group report EBITDA of $1.4 billion at a 61% margin. The Group remains a first quartile copper producer with a highly competitive net cash cost of 64 USc/lb. I am pleased that the Aktogay expansion project remains on track to start up by the end of 2021.”

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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

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

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GUIDANCE UPDATE

Minerals PLC (“KAZ Minerals” or “the Group”) today announces an update to its production and capital expenditure guidance for the 2020 financial year.

In its production report for the third quarter ended 30 September 2020, the Group indicated that full year copper and gold production would be at the top end of their respective guidance ranges of 280-300 kt and 180-200 koz. Following the successful completion of maintenance in November 2020, the absence of material disruption from Covid-19 and taking into account production run rates, copper and gold output are now expected to be 2-3% above their respective guidance ranges.

Due to the timing of payments on the Aktogay expansion and Baimskaya projects, in the region of $100 million of capital expenditure planned for 2020 will be incurred in the first quarter of 2021.

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BAIMSKAYA PROJECT UPDATE

In its announcement on 28 October 2020, the Independent Committee of KAZ Minerals PLC (“KAZ Minerals” or “the Group”) stated that the risks to the Baimskaya project were significant and had recently increased, noting that discussions with the Russian government regarding the provision of transport and power infrastructure for the operational phase of the project were ongoing. The outcome of these discussions was uncertain and had the potential to further increase the capital and operating costs of the project.

Today the Ministry for the Development of the Russian Far East and Arctic has submitted for approval by the Prime Minister of the Russian Federation a multi-party Complex Development Plan (“CDP”) for new infrastructure in the Chukotka region. The CDP includes infrastructure to be used by KAZ Minerals for the Baimskaya project.

Under the CDP, KAZ Minerals will now take responsibility for a portion of the infrastructure capital costs. Together with a revised cost for the tailings storage facility and the impact of an approximate one year delay to the project schedule, the capital construction budget for the Baimskaya project is now estimated to be close to $8 billion. 

Given the changes in the infrastructure plan, the bankable feasibility study (“BFS”) is now expected to be completed in the first half of 2021. In light of the delay to the finalisation of the BFS, the Independent Committee is providing an update reflecting the Group’s current understanding of the key parameters of the Baimskaya project ahead of the planned shareholder vote on the Acquisition of KAZ Minerals by Nova Resources B.V..

Michael Lynch-Bell, Senior Independent Director and Chair of the Independent Committee, said: “When recommending the offer from Nova Resources of 640p per share, the Independent Committee of KAZ Minerals stated that the risks on the Baimskaya project were increasing. The Complex Development Plan for Chukotka submitted today within the Russian government has resulted in higher infrastructure costs and a delay to the bankable feasibility study. Recognising that shareholders require up to date information on Baimskaya ahead of the planned vote on the offer, the Independent Committee has taken the decision to publish the latest available project parameters based on the study work completed to date.”

Details of the Complex Development Plan

The CDP is an agreement co-authored by multiple public and private entities, including KAZ Minerals, which provides a high-level project plan to deliver infrastructure to the Chukotka region. The document incorporates target dates for activities by the Russian government and private and state-owned businesses, which may also require future agreements to implement. The key items of infrastructure required for the Baimskaya project contained in the CDP are set out below:

Power

A new Liquefied Natural Gas (“LNG”) power plant is to be constructed at Cape Nagloynyn in Chaunskaya Bay for start-up in 2026. The CDP also includes the investigation of an alternative nuclear power station option at the same location. The regional government of Chukotka is to finance and construct power lines from Cape Nagloynyn to the Baimskaya project site, via Bilibino by 2026.

Port

The Russian government will construct sections of a new port facility at Cape Nagloynyn, to be completed by 2026, including dredging and facilities for the power plant. KAZ Minerals is now responsible for arranging the financing and construction of other sections of the port, including electrical infrastructure, port equipment and accommodation. The new port will receive supplies for the operating phase of the Baimskaya project, whilst also serving as the export route for copper concentrate to international markets.

Road

A 428 km permanent road linking the Baimskaya site to the new port has been split into two sections which are approximately equal in length. The first section, from Baimskaya to Bilibino, will now be financed and constructed by KAZ Minerals by 2024. The financing of the second section of the road, from Bilibino to Cape Nagloynyn, which is expected to have other users, remains under discussion.

Impact on KAZ Minerals’ capital expenditure and bankable feasibility study timing

Whilst the Baimskaya project continues to benefit from strong support from the Russian government, under the CDP KAZ Minerals will now be responsible for sections of the port and a circa 200 km section of the permanent road. Initial estimates obtained from Russian design institutes indicate additional construction costs for KAZ Minerals to be in the region of $600 million for this infrastructure.

The bankable feasibility study continues to progress. However, to accommodate changes to the infrastructure plan (for which certain items now fall under the responsibility of the KAZ Minerals’ project team) and evaluate the resulting impact on the project, including a delay to the project schedule, the BFS is now expected to be completed in the first half of 2021.

Project parameters update

The Baimskaya project is now expected to commence production by the end of 2027 and have an annual ore processing capacity of 70 Mtpa. The BFS is being prepared with an initial mine life of approximately 20 years based on JORC measured and indicated resources. However, recent drilling indicates potential for the mine life to be extended by around 5 years. Life of mine copper and gold processing grades are estimated at 0.47% copper and 0.27 g/t gold respectively. The project will deliver elevated production and grades in the first five years and accordingly net cash costs are lower during this period.

Including the additional costs for external infrastructure now expected to be incurred by KAZ Minerals, a revised cost for the tailings storage facility and the impact of an approximate one year delay to the project schedule, the capital construction budget for the Baimskaya project is now estimated to be close to $8 billion in nominal terms. The construction plan for the processing plant will ramp up the two lines in consecutive phases around 12 to 18 months apart with around 5% of the capital budget expected to be incurred after production commences from the first line. The project is expected to require sustaining capital expenditure of approximately $70 million per annum in 2020 US dollar terms, with additional maintenance included in operating costs. As sales ramp up, timing differences between production and sales proceeds are expected to result in a peak working capital requirement of $700 million in nominal terms over the initial years of operation.

The project is expected to apply for and receive TASED tax incentives and as a “new project” is expected to qualify for an exemption from the recent increase in MET for the first five years following commercial production.

A summary of the key project parameters is set out in the table below:

1. Years from commencement of production.
2. Payable metal in concentrate.
3. Copper production, plus gold, silver and molybdenum production, converted into copper units assuming analyst consensus long term average price forecasts of $6,700/t for copper, $1,500/oz for gold, $18/oz for silver and $20,000/t for molybdenum.
4. Stated in 2020 US dollar terms.

The stated parameters are an interim update reflecting the Group’s current understanding of the Baimskaya project. Sections of the project have not yet been advanced to feasibility study level. The project schedule and budget remain subject to change during ongoing work and review by the Project Assurance Committee’s independent advisors, after the project team’s completion of its study work. Future negotiations and agreements (including potential take or pay contracts) may also be required following the CDP to secure the external infrastructure, which could further impact the project’s capital budget, operating costs and schedule.

For further information please contact:

REGISTERED OFFICE

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KAZ MINERALS GROUP Production Report for nine months and THE third QUARTER Ended 30 September 2020

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• Operational highlights
  • All metals on track to achieve or exceed full year production guidance, assuming no new material Covid-19 impact
  • Copper production¹ of 76.2 kt (Q2 2020: 78.9 kt), on track for top end of full year guidance of 280-300 kt
  • Gold production² of 50.7 koz (Q2 2020: 54.3 koz), forecast to reach top end of 180-200 koz guidance range
  • Group silver production² guidance increased to c.3,500 koz and zinc in concentrate guidance to 45-50 kt
• Aktogay
  • Copper production¹ in Q3 of 31.7 kt, below previous quarter (Q2 2020: 34.3 kt), as throughput reduced by scheduled maintenance
  • Average copper grade in Q3 of 0.56% (Q2 2020: 0.55%) higher than expected due to positive variance against the mine plan
  • Full year copper production¹ on track to achieve upper end of guidance range of 120-130 kt
• Bozshakol
  • Copper production² of 30.3 kt (Q2 2020: 30.6 kt), as higher ore throughput was offset by lower copper grades and recoveries
  • Gold production² reduced to 37.0 koz (Q2 2020: 41.0 koz) due to expected lower average gold grades and recoveries
  • On track to achieve full year copper production² guidance of 110-120 kt and the upper end of gold production² guidance of 140-150 koz, with mill maintenance deferred from earlier in the year scheduled to take place in Q4
• East Region and Bozymchak
  • Copper production² of 14.2 kt (Q2 2020: 14.0 kt), on track to achieve full year guidance of c.50 kt
  • Gold production² of 13.7 koz (Q2 2020: 13.3 koz), could exceed full year guidance of 40-50 koz
  • Silver production² full year guidance increased to c.2,000 koz, following strong Q3 output of 554 koz
  • Strong zinc in concentrate output, benefiting from higher grades, with 15.7 kt produced in Q3 (Q2 2020: 14.8 kt). Full year zinc in concentrate guidance increased to 45-50 kt
  • Achieving top end of gold guidance is dependent on the restart of the Bozymchak mine in Q4, where production has been temporarily suspended since 7 October, to ensure employee safety following recent political instability in Kyrgyzstan
• Covid-19
  • Ensuring the safety, health and wellbeing of employees and contractors is the Group’s first priority
  • Comprehensive measures remain in place to protect staff and mitigate the risk of disruption to operations
  • There has been no major impact to the Group’s operations or sales in Q3
  • Reported Covid-19 infection rates in Kazakhstan reduced to a low level during the quarter, but the risk of new restrictions in Q4 remains

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: “KAZ Minerals has delivered strong production in Q3 and the nine months to September 2020, despite the challenges posed by Covid-19. Copper output from our mines in Kazakhstan has been uninterrupted in 2020, with year to date copper volumes maintained at a similar level to 2019 whilst by-product output is significantly ahead. Whilst maintenance is scheduled for Q4, we are on track to achieve the upper end of our copper and gold guidance ranges and have increased production guidance for silver and zinc.”

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Following recent press coverage KAZ Minerals today provides an update on the provision of infrastructure for the operational phase of the Baimskaya copper project.

As set out in the update announced on 5 June 2020, the Russian government and the Group are continuing to work together on the details of the power and transport infrastructure required for the project. A new proposal under consideration is for the construction of a new port and LNG power plant at Cape Nagloynyn in Chaunskaya Bay. The LNG power plant would provide power for the operations phase. The Baimskaya project site would be linked by approximately 400 km of road to the new port which would be used for the shipment of concentrate.

Discussions with the Russian government are ongoing. Further details will be announced as appropriate.

For further information please contact:

REGISTERED OFFICE

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KAZ MINERALS GROUP Production Report for six months and THE second QUARTER Ended 30 June 2020

• Highlights
  • H1 2020 copper production¹ increased by 4% to 153.8 kt (H1 2019: 147.6 kt) driven by high ore throughput and improved grades at Bozshakol
  • Gold production² increased by 25% to 109.7 koz (H1 2019: 87.7 koz) due to higher processing volumes and grades at Bozshakol
  • All metals currently on track to achieve full year production guidance but Covid-19 risks elevated in second half
• Aktogay
  • First half copper production¹ of 67.6 kt (H1 2019: 74.1 kt) as stronger than planned sulphide copper grades of 0.56% (H1 2019: 0.58%) were offset by temporarily lower recovery rates and ore throughput in Q1
  • Q2 copper production¹ increased by 3% to 34.3 kt (Q1 2020: 33.3 kt) due to higher recovery rates and ore throughput following scheduled maintenance in January
  • On track for full year copper production¹ guidance of 120-130 kt, lower grades expected in the second half
• Bozshakol
  • Copper production² increased 28% in H1 2020 to 60.4 kt (H1 2019: 47.1 kt) with higher grades and an 18% increase in ore throughput, due to deferral of maintenance and the suspension of the clay plant in H1 2019
  • First half gold production² 40% higher at 83.3 koz (H1 2019: 59.6 koz), also benefiting from higher processing volumes and grades
  • Full year copper and gold guidance unchanged at 110-120 kt and 140-150 koz with scheduled maintenance in the second half
• East Region and Bozymchak
  • Copper production² in H1 2020 of 25.8 kt (H1 2019: 26.4 kt) with increased output in Q2 of 14.0 kt (Q1 2020: 11.8 kt) as the Nikolayevsky concentrator operated at full capacity following planned idling in January
  • H1 2020 gold production² of 25.8 koz (H1 2019: 26.4 koz) with higher output in Q2 of 13.3 koz (Q1 2020: 12.5 koz) also benefiting from the increased processing at Nikolayevsky
  • Zinc in concentrate output of 23.8 kt (H1 2019: 18.4 kt), due to higher grades of 2.62% (H1 2019: 2.11%)
  • Full year guidance maintained for all metals
• Covid-19 update
  • Ensuring the safety, health and wellbeing of employees and contractors is the Group’s first priority and comprehensive measures have been taken to protect staff
  • There has been no material disruption to operations or sales from Covid-19 to date. However, Kazakhstan imposed a second phase of quarantine measures from 5 July 2020 reflecting heightened risk in the country and to the Group’s operations for the second half of the year
  • Ongoing restrictions on the movement of staff and contractors and deferred maintenance may impact production and unit costs in the second half

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

Andrew Southam, Chief Executive Officer, said: “In the second quarter of 2020 KAZ Minerals grew copper production across all of its divisions and delivered a 5% increase in Group output. This is an excellent performance in a challenging operating environment and reflects the dedication and resilience of our employees. We are entering the second half of the year with an elevated level of Covid-19 risk, however production of all metals is currently on track to achieve our full year targets.”

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REGISTERED OFFICE

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KAZ Minerals today announces updated parameters for the Baimskaya Project, based on feasibility study work completed to date.

Work at the Baimskaya site in the second quarter has been limited due to measures taken to control the spread of the Covid-19 virus in the region. Prior to the disruption, equipment and materials were delivered to the site for the pioneer works scheduled to take place during the year. Activity is expected to resume in due course and the Group’s capital expenditure guidance of $150 million for 2020 remains in place.

Progress on the Bankable Feasibility Study has also been impacted by Covid-19 related issues with teams in Moscow and Vancouver required to work from home and restrictions on both domestic and international travel.

The Group and the Russian government are continuing to work together on the details of the power and transport infrastructure required for the operational phase of the project including potential take or pay agreements. Due to the additional time required to finalise the infrastructure plan for the Project, including Covid-19 related delays, the BFS is now expected to be completed by the end of 2020.

Based on the results of ongoing drilling campaigns and work completed on the BFS to date, some of the key parameters of the Baimskaya Project have changed since those announced at the time of acquisition:

• drilling results indicate a potential increase in Mineral Resources which would lead to an extension of the mine life, previously guided at around 25 years;
• reflecting the expectation of increased Mineral Resources and the latest available technology from equipment suppliers, project economics are optimised by increasing design capacity for the concentrator from 60 Mtpa to 70 Mtpa of ore processed;
• the current construction plan for the processing plant will ramp up the two lines in consecutive phases around 12 to 18 months apart, reducing the peak funding requirement when compared to a simultaneous startup; and
• the estimated capital budget for the Baimskaya project has increased to around $7 billion¹ following more detailed costings during the BFS work and due to the additional plant and equipment required to deliver increased ore volumes for the new concentrator design, including a larger mining fleet, maintenance facilities and site accommodation. Around 10% of the capital budget is expected to be incurred after production commences from the first line.

The timetable for construction remains around seven years. Further details on the project timetable, capital expenditure, production guidance and operating costs will be published upon completion of the BFS. Discussions will then be further progressed with potential lenders and the Group will also assess opportunities for partnering on the Project.

Oleg Novachuk, Chair, said “We are working to develop our execution strategy for the delivery of the Baimskaya copper project, one of the world’s largest undeveloped copper assets. Study work and drilling completed so far at Baimskaya indicates that a larger project will unlock the potential of the world class Peschanka deposit. We look forward to updating the market with the details of the Bankable Feasibility Study when it is completed later this year.”

¹ Capital budget is estimated in nominal terms based on 100% share of development capital expenditure, subject to confirmation in further study work.

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