KAZ Minerals PLC New $300 million credit facility and PXF update (6316R)
December 13 2016 - 2:00AM
UK Regulatory
TIDMKAZ
RNS Number : 6316R
KAZ Minerals PLC
13 December 2016
KAZ MINERALS PLC
6(TH) FLOOR
CARDINAL PLACE
100 VICTORIA STREET
LONDON SW1E 5JL
Tel: +44 (0) 20 7901 7800
============================
13 December 2016
NEW $300 MILLION CREDIT FACILITY WITH DEVELOPMENT BANK OF
KAZAKHSTAN AND pXF UPDATE
KAZ Minerals PLC ("KAZ Minerals" or "the Group") announces that
it has reached agreement on a new $300 million credit facility with
the Development Bank of Kazakhstan JSC ("DBK") which is scheduled
to be signed on 14 December 2016.
The DBK facility will finance the completion of the Aktogay
project which began commissioning of its main sulphide concentrator
on 6 December 2016. The facility is expected to be fully drawn
before the year-end and extends for a term of 8.5 years until final
maturity in June 2025. The loan is repayable in instalments with
the first repayment due in June 2018, followed by semi-annual
repayments in May and November of each year from 2019 until 2024
and a final repayment in June 2025. The facility bears an interest
rate of US dollar LIBOR +4.50% and contains a financial covenant
which is the same as the Group's loan facilities with the China
Development Bank, based on a ratio of total liabilities to total
assets, with adjustments to mitigate the translation impact of
movements in the US dollar/tenge exchange rate.
The Group also announces that an increased commitment by ING
Bank N.V. in the Pre-export finance facility ("PXF") has been
agreed for an additional $50 million under the accordion feature.
The additional commitment is expected to be drawn before the
year-end. The total amount outstanding under the PXF as at 31
December 2016, including the additional drawing, is expected to be
approximately $283 million. As previously announced, the Group
intends to resume discussions with the PXF bank syndicate over a
longer-term refinancing of the facility, after release of its 2016
financial statements.
Following the previously announced waiver obtained from the PXF
lenders, the Group has also received a waiver from Caterpillar
Financial Services (UK) Limited in relation to testing of the Net
Debt to EBITDA covenant on 31 December 2016 under the $50 million
CAT facility.
Andrew Southam, Chief Financial Officer of KAZ Minerals, said:
"We are pleased to have secured a new, long-term facility of $300
million from the Development Bank of Kazakhstan and to have
increased ING Bank N.V.'s participation in the PXF facility by $50
million, ahead of a planned refinancing in the first half of 2017.
These transactions demonstrate the Group's ability to access
diversified sources of finance and the strong support KAZ Minerals
enjoys from its lenders."
For further information please contact:
KAZ Minerals
PLC
==================== ========================== ======================
Chris Bucknall Investor Relations,
London Tel: +44 20 7901 7882
Investor Relations,
Anna Mallere London Tel: +44 20 7901 7814
Maksut Zhapabayev Corporate Communications, Tel: +7 727 244 03 53
Almaty
==================== ========================== ======================
Instinctif Partners
==================== ========================== ======================
David Simonson Tel: +44 20 7457 2020
==================== ========================== ======================
REGISTERED OFFICE
6th Floor, Cardinal Place, 100 Victoria Street, London SW1E 5JL,
United Kingdom.
NOTES TO EDITORS
KAZ Minerals PLC ("KAZ Minerals" or "the Group") is a high
growth copper company focused on large scale, low cost, open pit
mining in Kazakhstan. It operates four mines and three
concentrators in the East Region of Kazakhstan, the Bozymchak
copper-gold mine in Kyrgyzstan, the Bozshakol open pit copper mine
in the Pavlodar region of Kazakhstan and the Aktogay open pit
copper mine in the East Region of Kazakhstan. In 2015, total copper
cathode output from the East Region and Bozymchak was 81 kt with
by-products of 94 kt of zinc in concentrate, 3,135 koz of silver
and 35 koz of gold bar.
The Group's major growth projects at Bozshakol and Aktogay are
expected to deliver one of the highest growth rates in the industry
and transform KAZ Minerals into a company dominated by world class,
open pit copper mines.
Bozshakol is a first quartile asset on the global cost curve and
will have an annual ore processing capacity of 30 million tonnes
when fully ramped up, with a mine life of 40 years at a copper
grade of 0.36%. The mine and processing facilities will produce 100
kt of copper cathode equivalent and 120 koz of gold in concentrate
per year over the first 10 years of operations.
Aktogay is a large scale, open pit mine similar to Bozshakol,
with a mine life of more than 50 years and average copper grades of
0.37% (oxide) and 0.33% (sulphide). Aktogay commenced production of
copper cathode from oxide ore in December 2015, and the production
of copper in concentrate from sulphide ore is expected to begin by
the end of the first quarter of 2017. The sulphide concentrator
will have an annual ore processing capacity of 25 million tonnes
when fully ramped up. Aktogay is competitively positioned on the
global cost curve and will produce an average of 90 kt of copper
cathode equivalent from sulphide ore and 15 kt of copper cathode
from oxide ore per year over the first 10 years of operations.
KAZ Minerals is listed on the London Stock Exchange, the
Kazakhstan Stock Exchange and the Hong Kong Stock Exchange and
employs around 13,000 people, principally in Kazakhstan.
Development Bank of Kazakhstan JSC ("DBK") was established in
2001 to invest in the modernization and development of the non-oil
and gas and infrastructure sectors of the Kazakhstan economy, with
a focus on production infrastructure and the manufacturing
industry. DBK is a subsidiary of Baiterek National Managing Holding
JSC with responsibility for promoting industrial development and
innovation in Kazakhstan.
This announcement contains inside information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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