Q1 2020 Production Report

KAZ MINERALS GROUP Production Report for the first quarter Ended 31 march 2020

• • Highlights
    • Copper production¹ of 74.9 kt (Q4 2019: 80.9 kt), 7% above prior year comparative period (Q1 2019: 70.0 kt) and on track to achieve 2020 guidance of 280-300 kt
    • Strong gold production² of 55.4 koz (Q4 2019: 55.3 koz) driven by high ore throughput at Bozshakol
    • Net debt $2,796 million (31 December 2019: $2,759 million) with $306 million of undrawn facilities and cash of $1,055 million, following draw down of PXF facility amended on 28 January 2020
  • Covid-19 update
    • Ensuring the safety, health and wellbeing of employees and contractors is the Group’s first priority
    • All mines have maintained operations in the year to date and 2020 production guidance is unchanged
    • Pre-emptive measures taken to protect sites from the impact of Covid-19 including restricted access, health screening, re-organisation of shifts and increased stocking of critical spares and consumables
    • Sales to customers have continued with only minor delays at the China-Kazakhstan border
    • Potential risks to our operations include further restrictions on the movement of goods or people, supply chain interruptions or cases of infection occurring on sites
    • The Group has provided emergency financial support to vulnerable communities in its countries of operation
  • Aktogay
    • Q1 copper production¹ of 33.3 kt (Q4 2019: 34.3 kt) as sulphide ore throughput was reduced by the planned mill relining deferred from Q4 2019 and temporarily lower recoveries
    • Copper cathode production from oxide ore increased to 6.1 kt (Q4 2019: 4.2 kt) due to seasonal factors and following optimisation works
    • On track to achieve full year copper production¹ guidance of 120-130 kt with lower sulphide grades expected over the rest of the year
  • Bozshakol
    • Copper production² of 29.8 kt (Q4 2019: 31.0 kt) as higher ore throughput of 8,040 kt (Q4 2019: 7,844 kt) was offset by lower average copper grades, well positioned for full year guidance of 110-120 kt
    • Gold production² of 42.3 koz (Q4 2019: 41.8 koz) benefited from higher processing volumes and recovery rates, representing good progress against full year guidance of 140-150 koz
  • East Region and Bozymchak
    • Copper production² of 11.8 kt (Q4 2019: 15.6 kt) due to stockpiling of ore at Nikolayevsky in January
    • Gold production² of 12.5 koz (Q4 2019: 12.9 koz), as lower East Region processing volumes were partially offset by strong output from the Bozymchak mine in Kyrgyzstan of 9.5 koz (Q4 2019: 9.4 koz)
    • Silver production of 443 koz (Q4 2019: 511 koz) and zinc in concentrate output of 9.0 kt (Q4 2019: 9.4 kt), both in line with expectations
    • Full year production guidance is maintained for all metals

  Group production summary3		Q1 2020	Q4 2019	Q1 2019
  Copper production1	kt	74.9	80.9	70.0
  Aktogay	kt	33.3	34.3	36.7
  Bozshakol	kt	29.8	31.0	23.8
  East Region & Bozymchak	kt	11.8	15.6	9.5
  Gold production2	koz	55.4	55.3	43.4
  Silver production2	koz	793	886	626
  Zinc in concentrate	kt	9.0	9.4	6.2

  • 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: “Our first priority is to keep our employees and communities safe and I am proud that the Group and our contractors have worked tirelessly to achieve that whilst maintaining operations. We have adapted working practices to extend shifts, restrict access to sites and to monitor the health of staff. The measures we have taken have enabled us to deliver a strong quarter of production, with copper and gold output respectively 7% and 28% higher versus the prior year period, and to maintain our full year guidance.”

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