Q3 Production Report 2016 and IMS

KAZ MINERALS GROUP Production Report for nine months and THE third QUARTER Ended 30 september 2016 and interim management statement 

  • Copper cathode equivalent production1 in Q3 of 44.5 kt (Q2: 31.1 kt)
    • Production growth continues as Bozshakol and Aktogay oxide ramp up
    • Group guidance for 2016 maintained at 135-145 kt copper cathode equivalent (FY 2015: 81.1 kt)
  • Bozshakol more than doubles copper output in Q3 to 16.9 kt (Q2: 7.5 kt)
    • Ore throughput has steadily increased in Q3
    • Concentrator has now operated at ore throughput levels above 60% for three months, declared commercial today
  • Aktogay oxide increases copper cathode output by 69% to 6.6 kt in Q3 (Q2: 3.9 kt)
    • Oxide production benefited from seasonally warmer conditions in the third quarter
    • On track to produce around 15 kt in 2016, in line with guidance
  • By-product output on track to achieve full year guidance ranges
    • Strong Q3 gold output of 40.9 koz supported by Bozymchak operating consistently at design capacity and a temporarily high grade at Bozshakol
    • Silver bar output 806 koz in Q3 (Q2: 679 koz) assisted by a release of work in progress
    • Full year silver production expected to exceed top end of 2,500-2,750 koz guidance due to lower than expected grade decline in the East Region in 2016
    • Zinc in concentrate output of 16.6 kt in Q3, 56.2 kt in the period to 30 September 2016, on track for full year guidance of 70-75 kt
  • Net debt of $2,590 million at 30 September 2016
    • Gross liquid funds of $872 million
  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: “KAZ Minerals continues to deliver sector-leading production growth, with our copper output growing by 66% in the first nine months of this year. Given the progress made in ramping up Bozshakol, our first major growth project, we have declared it a commercially producing asset from today. We are also making good progress on the construction of the Aktogay sulphide project, which will deliver the next phase of our production growth in 2017.”

Please follow the link to read the full announcement.