Q2 Production Report 2016

KAZ MINERALS GROUP Production Report for six months and THE second QUARTER Ended 30 june 2016

  • Copper cathode equivalent production1 of 52.6 kt in H1 2016, an increase of 43%
    • Rise in copper output due to commissioning of new mines
    • Continued production growth expected in the second half
    • Group on track to meet 2016 guidance of 130-155 kt copper cathode equivalent1
  • Bozshakol commissioning progressing well, FY guidance maintained
    • 100% load tests successfully performed on key equipment
    • Copper in concentrate production of 9.5 kt in Q2 (Q1: 1.1 kt)
    • Q2 throughput limited by 17 day scheduled shutdown in May and commissioning works in June
    • Throughput increasing in Q3, 2016 guidance maintained at 45-65 kt copper cathode equivalent1
  • Aktogay oxide cathode output of 3.9 kt in Q2 (Q1: 1.5 kt)
    • Ramp up progressing, on track for 15 kt full year guidance
  • Significant increase in gold production
    • Gold bar equivalent output1 of 39.1 koz in H1 2016 (H1 2015: 16.1 koz)
    • Bozymchak operated at design capacity throughout the first half, producing 17.9 koz of gold bar equivalent1 (H1 2015: 5.1 koz)
    • East Region and Bozymchak produced 30.0 koz of gold bar equivalent1, now on course to meet or exceed top of 2016 guidance range (40-50 koz)
    • Bozshakol contributed 9.1 koz of gold bar equivalent1 in H1 2016, with 8.8 koz in Q2
  1. The Group’s finished goods “equivalent” production includes both finished metals produced and the finished metal equivalent of concentrate sold in the period.

Oleg Novachuk, Chief Executive, said: “Our new mines at Bozshakol, Aktogay and Bozymchak have begun to make a meaningful contribution to Group production with copper output growing by 43% in the first half. The East Region assets continue to deliver against targets and all mines are on track to achieve the Group’s full year production guidance. We are now delivering the highest growth rate in the sector and we look forward to updating the market on our financial performance when we announce our half year results in August.”

Please follow the link to read the full announcement.