KAZ MINERALS GROUP PRODUCTION REPORT FOR THE FIRST QUARTER ENDED 31 MARCH 2018

• Copper production¹ increased by 3% to 67.3 kt (Q4 2017: 65.2 kt) supported by higher output at Bozshakol and Aktogay sulphide
• On track to achieve 2018 production guidance for all metals 

• Bozshakol
  • 20% increase in copper production² to 26.9 kt (Q4 2017: 22.5 kt) supported by a 10% growth in ore throughput and improved copper recovery
  • Gold output increased by 29% to 36.0 koz (Q4 2017: 27.9 koz) due to higher gold grade and improved recovery rate

• Aktogay
  • Copper production² from sulphide ore increased by 9% to 21.1 kt (Q4 2017: 19.3 kt), benefitting from higher copper grade of 0.62% and recovery rate of 88%
  • Cathode production from oxide ore seasonally lower at 5.3 kt (Q4 2017: 6.7 kt), 13% above Q1 2017 

• East Region and Bozymchak
  • Copper production² 16% lower at 14.0 kt (Q4 2017: 16.7 kt) due to planned idling of the Nikolayevsky concentrator, full year guidance of c.65 kt maintained
  • By-products in line with expectations, with zinc output rising 20% to 14.2 kt (Q4 2017: 11.8 kt)

• Financial update
  • Net debt of $2,206 million at 31 March 2018
  • $250 million deferred from 2016-17 paid to Aktogay construction contractor in the quarter

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.

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KAZ MINERALS GROUP PRODUCTION REPORT FOR 12 MONTHS AND THE fourth QUARTER ENDED 31 december 2017

• Full year copper production¹ increased by 80% to 259 kt (FY 2016: 144 kt)
  • Copper at top of February 2017 FY guidance (225-260 kt) and in line with updated range (250-270 kt)
  • Full year gold production² of 179 koz at upper end of guidance range (160-180 koz)
  • Q4 copper production¹ of 65 kt (Q3 2017: 75 kt) reflecting expected grade reduction at Aktogay and Bozshakol concentrator maintenance

• Bozshakol copper production² of 23 kt in Q4 (Q3 2017: 27 kt)
  • Full year copper production² of 101 kt (FY 2016: 48 kt), in line with guidance of 100-110 kt
  • Gold production² maintained at 28 koz in Q4 (Q3 2017: 28 koz), FY 2017 output of 119 koz at top of range (110-120 koz)
  • Sulphide plant throughput limited in Q4 due to 13 day stoppage for maintenance in November
  • Changes to mining sequence resulted in a reduced sulphide ore mined copper grade of 0.49% in Q4 2017 and a processed grade of 0.44% is now expected for 2018. Copper production² at Bozshakol is expected to be in the region of 100 kt in 2018

• Aktogay copper production¹ of 26 kt in Q4 (Q3 2017: 31 kt)
  
  • Full year copper production¹ of 90 kt (FY 2016: 18 kt), in line with guidance of 85-95 kt
  • Main sulphide concentrator achieved 68% of design throughput in Q4
  • Oxide production of 7 kt in Q4 and 25 kt for the full year, at the top end of guidance of up to 25 kt

• 17 kt of copper production² in Q4 from East Region and Bozymchak results in FY production of 67 kt
  
  • Ahead of FY 2017 copper production² guidance of c.65 kt
  • Q4 zinc in concentrate output of 12 kt, full year production of 58 kt below guidance of 60-65 kt due to delayed access to high grade ore at Artemyevsky

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

Andrew Southam, Chief Executive Officer, said: “I am pleased that in 2017 we achieved copper production targets across all of our assets including at Aktogay, where we launched sulphide production in February 2017 and declared the concentrator commercial in October. The performance of our two recently commissioned mines at Bozshakol and Aktogay has delivered an 80% increase in annual copper output into a tightening market and gold production at the top of our guidance range.”

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• $1.2 billion expansion project approved to double sulphide ore processing capacity at Aktogay from 2021
• Annual copper production from sulphide ore to increase to 170 kt from 2022 to 2027 and 130 kt thereafter
• Net cash cost guidance to 2027 maintained at 100-120 USc/lb
• Capital investment supported by strong cash flows from Bozshakol and Aktogay

KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces a planned expansion of its processing facilities at the Aktogay copper mine in the East Region of Kazakhstan. Following the achievement of commercial production at the Aktogay sulphide concentrator in October 2017, the Board has approved the construction of a second concentrator which will double the current sulphide ore processing capacity from 25 million to 50 million tonnes per annum.

The expansion represents a low risk growth project, being a duplicate of the sulphide processing facilities successfully commissioned at Bozshakol and Aktogay. Construction will be managed by the KAZ Minerals projects division which delivered the original project, with contracts to be tendered in 2018. The capital budget for the expansion project is expected to be in the region of $1.2 billion with approximately $200 million to be invested in 2018. The remaining expenditure will be incurred from 2019 to 2021. The mining fleet will be upgraded to support the higher ore throughput.

Output from the new concentrator is expected to commence in the second half of 2021 with the facility ramping up during 2022. Copper production from sulphide ore at Aktogay will increase by 80 kt to an average of around 170 kt per annum from 2022 to 2027, supported by higher copper grades. Over the remaining life of the mine, when copper grades will be in line with the average resource grade of 0.34%, the Aktogay expansion will add 60 kt per annum, increasing annual production to around 130 kt. Due to higher processing volumes the life of the sulphide ore body will reduce from over 50 years to approximately 28 years. Copper cathode production from oxide ore at Aktogay will be unchanged at the current level of around 20 kt per annum for the remaining eight year life of the oxide deposit.

Net cash cost guidance to 2027 following the expansion is unchanged at 100-120 USc/lb in 2017 US dollar terms with efficiency gains from larger scale mining operations offsetting the effect of accelerated grade decline as processing volumes are brought forward. Sustaining capital expenditure will increase from $30-$40 million to $50-$60 million per annum from 2022 onwards. The expansion is expected to generate a return in excess of the Group’s cost of capital in the analyst consensus copper price scenario.

Oleg Novachuk, Chief Executive, said: “I am pleased to announce the planned expansion of our second major growth project, Aktogay, which will double its processing capacity from 2021. This expansion represents an opportunity for our proven project team to deliver a strong return on investment from an asset we know well by replicating the existing sulphide plant. Our outlook for copper remains positive and this development will help us to continue to grow in a tightening market. The capital expenditure over the period to 2021 for the expansion will be supported by strong cash flows from our new, low cost operations at Bozshakol and Aktogay.”

A call for analysts will be held at 10:00am UK time. To participate in the call in listen-only mode please use the following dial-in details:

Conference call dial in: +44 (0) 20 3003 2666
Password: KAZ Minerals
Webcast: http://view-w.tv/834-1089-19140/en
Presentation download: http://www.kazminerals.com/investors/presentation-library/

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KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces that it has received notification today from the Government of Kyrgyzstan that the suspension of operations at Bozymchak announced on 2 November 2017 has been cancelled. Bozymchak has resumed full production.

Bozymchak produced 7 kt of copper cathode and 38 koz of gold bar in the year to 31 December 2016.

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KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces that the Government of Kyrgyzstan has today suspended operations at Bozymchak, the Group’s copper and gold mine in Kyrgyzstan, for a period of three months. The Group believes that Bozymchak is in compliance with its obligations and is in discussions with the relevant authorities to recommence operations as soon as possible.

Bozymchak produced 7 kt of copper cathode and 38 koz of gold bar in the year to 31 December 2016. The Group’s 2017 copper production guidance remains 250-270 kt.

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KAZ MINERALS GROUP PRODUCTION REPORT FOR NINE MONTHS AND THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 AND INTERIM MANAGEMENT STATEMENT

• Operational highlights
  • Copper production¹ increased by 14% to 75 kt in Q3 (Q2 2017: 66 kt) as Aktogay ramps up
  • Full year copper production¹ guidance increased to 250-270 kt
  • Gold production guidance raised to 160-180 koz 

• Bozshakol approaching design capacity
  • Copper production² of 27 kt in Q3 (Q2 2017: 29 kt)
    • Sulphide plant operated at 100% of design throughput in August (Q3 2017: 93%)
    • Q3 copper output impacted by expected reduction in copper grade
  • Clay plant achieved 81% of design throughput in Q3 (Q2 2017: 69%)
  • Gold guidance for 2017 raised to 110-120 koz, following strong year to date output

• Aktogay copper guidance increased to 85-95 kt
  • Copper production¹ of 31 kt in Q3 (Q2 2017: 21 kt)
  • Sulphide copper production² was 23 kt in Q3 (Q2: 15 kt) and operations declared commercial from October
  • Oxide copper cathode production of 8 kt in Q3 (Q2 2017: 6 kt)

• East Region and Bozymchak
  • Q3 2017 copper production² of 17 kt (Q2 2017: 16 kt), on track for full year guidance of around 65 kt
  • High zinc grade areas in East Region not yet accessed, full year zinc guidance revised to 60-65 kt
  • On track for top end of gold guidance range of 50-60 koz and silver guidance increased to 2,600-2,850 koz

• Financial update
  • Net debt of $2,220 million at 30 September 2017 (30 June 2017: $2,442 million)
  • $1,684 million of available liquidity including cash and cash equivalents of $1,352 million and $332 million of undrawn facilities
  • $74 million of VAT refunds in relation to project capital expenditure received in Q3

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

Oleg Novachuk, Chief Executive, said: “Following another strong quarter from our new sulphide operations at Aktogay we have raised the Group’s copper production guidance for 2017 to 250-270 kt. Aktogay’s sulphide concentrator reached commercial levels of production at the end of Q3 and we expect to reach full capacity during 2018. At Bozshakol, the main concentrator operated at 100% of design throughput in August. KAZ Minerals is rapidly improving its gearing metrics as we deliver against our operational targets in an improving market for copper.”

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KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces that following continued commissioning progress the Aktogay sulphide plant has been declared commercial. Revenues, operating costs and interest expenses associated with the Aktogay sulphide plant will be recorded in the Group’s income statement from October 2017.

Higher than anticipated copper grades at the top of the ore body and the successful ramp up of the sulphide concentrator are expected to result in Aktogay meeting or exceeding the upper end of its 2017 copper production guidance range of 70-85 kt.

The Group’s third quarter production results will be set out in the Quarterly Production Report and Interim Management Statement on 26 October 2017.

Oleg Novachuk, Chief Executive, said: “I am pleased to announce that we have achieved commercial production at the Aktogay sulphide plant, the second of our two major growth projects. During the construction and ramp up of the projects we have consistently delivered against our operational and financial targets and we now look forward to reaching design capacity at Bozshakol this year and Aktogay in 2018.”

For further information, please contact:

Susanna Freeman
Company Secretary
Tel: + 44 (0)20 7901 7826

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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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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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KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces that it has produced its first saleable copper concentrate from sulphide ore at the Aktogay project, consistent with the Group’s most recent guidance for output to commence in the first quarter of 2017. Shipments of concentrate from Aktogay are expected to begin imminently.

The Aktogay sulphide concentrator will now ramp up with the target of achieving commercial levels of output in the second half of 2017. Production guidance for Aktogay in 2017 will be issued along with the Group’s full year results announcement on 23 February 2017.

Oleg Novachuk, Chief Executive, said: “I am delighted to be able to announce the commencement of copper concentrate output from sulphide ore at Aktogay. Both of the Group’s major growth projects are now fully operational. Our production continues to grow strongly and is on track to reach 300 kt of copper per annum by 2018, with around 80% coming from our new low cost, open pit mines.”

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