Q4 Production Report 2017

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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