Q3 2020 Production Report

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
Group production summary3 9m 2020 9m 2019 Q3 2020 Q2 2020 Q3 2019
Copper production1 kt  230.0  230.5  76.2 78.9 82.9
Aktogay kt  99.3  111.4  31.7 34.3 37.3
Bozshakol kt  90.7 79.2  30.3 30.6 32.1
East Region & Bozymchak kt  40.0  39.9  14.2 14.0 13.5
Gold production2 koz  160.4 146.2  50.7 54.3 58.5
Silver production2 koz  2,642 2,496  901 948 944
Zinc in concentrate kt  39.5 28.9  15.7 14.8 10.5
  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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