TIDMKAZ
RNS Number : 5723W
KAZ Minerals PLC
28 April 2016
KAZ MINERALS
PLC
6(TH) FLOOR
CARDINAL PLACE
100 VICTORIA
STREET
LONDON SW1E 5JL
Tel: +44 (0)
20 7901 7800
==================
28 April 2016
KAZ MINERALS GROUP Production Report for THE FIRST QUARTER Ended
31 MARCH 2016 AND INTERIM MANAGEMENT STATEMENT
l Projects ramping up on schedule, production on track to
achieve 2016 guidance
l Q1 2016 copper cathode equivalent(1) production of 21.5 kt
l Bozshakol
-- Production at Bozshakol commenced in late February, 1.1 kt of
copper in concentrate output in the quarter
-- No major issues encountered and all the main sections of the
plant are now in operation
-- Throughput volume increasing as expected in April
-- Trial sales shipment completed in March, two shipments
dispatched in April
-- Production guidance maintained at 45-65 kt of copper cathode
equivalent(1) and 50-70 koz of gold bar equivalent(1)
l Aktogay oxide
-- 1.5 kt of copper cathode produced at Aktogay as the SX/EW
facility ramps up
-- Output of 35 tonnes per day achieved on average to date in
April, will ramp up further to achieve output of 15 kt in 2016
l East Region and Bozymchak
-- Copper cathode equivalent(1) output of 19.7 kt, on course to
achieve full year guidance of 70-75 kt
-- Bozymchak operated at design capacity following optimisation
works in Q4 2015
-- Zinc in concentrate production of 19.9 kt and silver granule
equivalent(1) of 749 koz
-- Gold bar equivalent(1) quarterly output doubled to 12.7
koz
l Financial update
-- Copper cathode sales of 23 kt
-- Net debt of $2,425 million at 31 March 2016, $1,205 million
of funds and available facilities
(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: "In the first quarter of
2016 the Bozshakol sulphide concentrator commenced operation and
the ramp up of the new facility is proceeding in line with
expectations. To date, we have dispatched three shipments of copper
concentrate from Bozshakol to our customers in China. At Aktogay,
the commissioning of our oxide operations is also on schedule and
our mines in the East Region and Bozymchak have delivered a strong
start to 2016. We expect to achieve our full year copper production
target of 130-155 kt, delivering industry leading production growth
at highly competitive cash costs."
For further information please contact:
KAZ Minerals
PLC
==================== ========================== =================
Chris Bucknall Investor Relations, Tel: +44 20 7901
London 7882
Investor Relations, Tel: +44 20 7901
Anna Mallere London 7814
Maksut Zhapabayev Corporate Communications, Tel: +7 727 244
Almaty 03 53
==================== ========================== =================
Instinctif Partners
==================== ========================== =================
Tel: +44 20 7457
David Simonson 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 the Bozshakol mine, oxide
operations at Aktogay, four mines and three concentrators in the
East Region of Kazakhstan and the Bozymchak copper-gold mine in
Kyrgyzstan. 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 granule and 35 koz of gold
bar.
The Group commenced production from Bozshakol, its first large
scale open pit project, in February 2016. The Group has a second
major project, Aktogay, with sulphide processing facilities
currently under construction. These projects 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 will have an annual ore processing capacity of 30
million tonnes when fully ramped up, a mine life of 40 years at a
copper grade of 0.36% and is a first quartile asset on the global
cost curve. 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.
The Aktogay project in the East of Kazakhstan is the Group's
second copper mining asset under construction. 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 in 2017. The sulphide concentrator will have an
annual ore processing capacity of 25 million tonnes when fully
ramped up. The deposit has a mine life of more than 50 years with
average copper grades of 0.33% (sulphide) and 0.37% (oxide).
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 11,000 people, principally in Kazakhstan.
GROUP PRODUCTION SUMMARY
Q1 Q4 Q1
2016 2015
2015
============================== ========= ======= ====== ======
Ore extraction kt 10,605 8,040 1,051
=============================== ======== ======= ====== ======
Average copper
grade % 0.65 0.88 2.31
================================ ======= ======= ====== ======
Copper in
ore mined kt 68.7 70.7 24.3
=============================== ======== ======= ====== ======
Copper in concentrate kt 22.4 23.0 21.5
================================= ====== ======= ====== ======
Copper cathode kt 20.3 22.7 19.1
================================== ===== ======= ====== ======
Copper cathode equivalent
(1) kt 21.5 22.7 19.1
================================== ===== ======= ====== ======
Zinc in concentrate kt 19.9 21.0 25.1
================================== ===== ======= ====== ======
Gold bar equivalent(1) koz 13.0 6.4 6.4
================================== ===== ======= ====== ======
Silver granule equivalent(1) koz 751 686 895
================================== ===== ======= ====== ======
1 Includes finished metals produced and the finished metal
equivalent of concentrate sold in the period.
Ore extraction of 10,605 kt was 2,565 kt or 32% above the volume
mined in Q4 2015, mainly due to increased mining of oxide ore at
Aktogay for placement onto the leach pads. Total ore output at
Bozshakol reduced by 17% compared to Q4 2015 when higher volumes of
clay ore were stripped to access sulphide ore to supply the
concentrator. The East Region and Bozymchak increased ore output by
144 kt or 13% to 1,236 kt compared to Q4 2015 to support higher
throughput at the optimised Bozymchak concentrator in Q1 2016.
Total ore extraction was more than ten times the volume mined in
Q1 2015 due to the commencement of large scale open-pit mining at
Aktogay and Bozshakol.
Copper in concentrate output of 22.4 kt in Q1 2016 includes the
first contribution from Bozshakol of 1.1 kt following initial
production in February 2016.
Copper cathode equivalent production in Q1 2016 benefitted from
1.5 kt of output from Aktogay oxide. Output of 19.7 kt from the
East Region and Bozymchak and a small contribution from the first
sale of Bozshakol copper in concentrate resulted in Group
production of 21.5 kt. East Region and Bozymchak production reduced
by 2.6 kt or 12% compared to Q4 2015, as expected, due to lower
copper grades, but remains on track to achieve 2016 guidance of
70-75 kt.
Zinc in concentrate production was 1.1 kt or 5% below the
previous quarter and 21% below Q1 2015 as mining continued in areas
with lower zinc grades at the Artemyevsky and Orlovsky mines. The
first quarter output of 19.9 kt represents good progress towards
the 2016 zinc in concentrate production target of 70-75 kt.
Gold bar equivalent production of 13 koz included an increased
contribution from the newly optimised Bozymchak concentrator and
benefitted from the sale in January of 5.2 koz of gold in
concentrate carried forward from 2015, partly offset by a build-up
of work in progress at the Balkhash smelter.
Silver granule equivalent production of 751 koz was 10% higher
than the 686 koz produced in Q4 2015 mainly due to a release of
work in progress at the Balkhash smelter. Underlying silver in
concentrate output was 776 koz, a reduction of 25 koz or 3%
compared to Q4 2015 and 88 koz or 10% lower than in Q1 2015.
BOZSHAKOL
(MORE TO FOLLOW) Dow Jones Newswires
April 28, 2016 02:00 ET (06:00 GMT)
Mining
Q1 Q4 Q1
2016 2015
2015
===================== ======== ====== ====== ======
Ore extraction kt 5,009 6,070 -
======================== ===== ====== ====== ======
Average copper
grade % 0.55 0.69 -
======================== ===== ====== ====== ======
Copper in
ore mined kt 27.8 41.8 -
====================== ======= ====== ====== ======
Average gold
grade g/t 0.28 0.32 -
======================= ====== ====== ====== ======
Gold in ore mined koz 45.7 62.8 -
======================= ====== ====== ====== ======
Average silver
grade g/t 1.6 2.0 -
======================= ====== ====== ====== ======
Silver in ore
mined koz 255 381 -
======================= ====== ====== ====== ======
Average molybdenum
grade(1) % 0.005 0.005 -
======================= ====== ====== ====== ======
Molybdenum in
ore mined(1) t 80 25 -
======================= ====== ====== ====== ======
(1) In sulphide ore.
The quantity of ore mined at Bozshakol reduced by 17% in Q1 2016
compared to Q4 2015 when a higher volume of clay ore was extracted
to access sulphide material to supply the concentrator. The 5,009
kt of ore mined in Q1 2016 consisted of 1,554 kt of sulphide ore
with a grade of 0.54%, compared to 532 kt of sulphide ore mined in
Q4 2015. The remaining 3,455 kt of ore extracted in Q1 2016 was
clay bearing with a copper grade of 0.56%. The clay bearing ore has
been stockpiled for processing at the separate 5 MT per annum clay
plant which will be commissioned later in 2016 as the project ramps
up.
Processing
Q1 Q4 Q1
2016 2015 2015
=============================== ====== ====== ======
Copper in concentrate kt 1.1 - -
========================= ====== ====== ====== ======
Copper cathode
equivalent(1) kt 0.3 - -
========================= ====== ====== ====== ======
Silver in concentrate koz 8.1 - -
========================= ====== ====== ====== ======
Silver granule
equivalent(1) koz 2.2 - -
========================= ====== ====== ====== ======
Gold in concentrate koz 1.3 - -
========================= ====== ====== ====== ======
Gold bar equivalent(1) koz 0.3 - -
=========================== ==== ====== ====== ======
1 The finished metal equivalent of concentrate sold in the period.
Bozshakol started producing copper concentrate in February 2016.
The ramp up of the concentrator is proceeding as expected and
Bozshakol is on track to achieve its production guidance of 45-65
kt of copper cathode equivalent and 50-70 koz of gold bar
equivalent in 2016.
No major issues have been encountered during commissioning.
Throughput during Q1 2016 was limited by a process water pipeline
blockage and variability in the power supply. As a result of
repairs to the water pipeline, sufficient water flow was achieved
for full plant operation and following a switch to a new
transformer, a stable power supply has been achieved from April
2016.
The next stage of the ramp up will focus on the optimisation of
the pebble crushers and regrind circuits, which will improve
recovery rates in the flotation process. The molybdenum circuit is
undergoing testing however future molybdenum production will be
dependent on market conditions.
Of the initial 1.1 kt of copper in concentrate produced in Q1
2016, the first trial shipment in March contained 0.3 kt of copper
and 0.4 koz of gold in concentrate. Upon the sale of this shipment,
output of 0.3 kt of copper cathode equivalent and 0.3 koz of gold
equivalent production was recognised in Q1 2016. Two further
shipments have been dispatched in April 2016.
AKTOGAY
Mining and processing
Q1 Q4 Q1
2016 2015 2015
====================== ===== ====== ====== ======
Ore extraction kt 4,360 878 -
===================== ====== ====== ====== ======
Copper grade % 0.38 0.36 -
===================== ====== ====== ====== ======
Copper in ore mined kt 16.6 3.1 -
======================= ==== ====== ====== ======
Copper cathode kt 1.5 0.4 -
======================= ==== ====== ====== ======
Ore output increased significantly at Aktogay in Q1 2016 to
4,360 kt as oxide ore mining ramped up to supply the heap leaching
process. The average copper grade of 0.38% is in line with
expectations for this stage of the project.
All of the ore mined, containing 16.6 kt of copper, was placed
on heap leach cells for irrigation, an increase of 13.5 kt compared
to the 3.1 kt of copper in ore mined in Q4 2015.
In Q1 2016 1.5 kt of copper cathode was produced during the
initial ramp up of the facility. Ramp up priorities during Q1 2016
were the efficient operation of the overhead crane and automated
cathode stripping systems in the EW facility. In the second quarter
works are being undertaken to improve the flow of solution through
the irrigation system and collector ponds. The facility has
averaged 35 tonnes of cathode per day to date in April and is on
track to achieve output in the region of 15 kt in 2016.
Copper mining
Q1 Q4 Q1
2016 2015 2015
========================== ==== ====== ====== ======
Ore extraction kt 1,236 1,092 1,051
========================== ==== ====== ====== ======
Orlovsky kt 342 355 354
========================== ==== ====== ====== ======
% 3.49 4.20 3.49
=============================== ====== ====== ======
Artemyevsky kt 319 316 324
========================== ==== ====== ====== ======
% 1.62 1.43 1.73
=============================== ====== ====== ======
Irtyshsky kt 159 166 164
========================== ==== ====== ====== ======
% 1.56 1.64 1.74
=============================== ====== ====== ======
Yubileyno-Snegirikhinsky kt 132 142 157
========================== ==== ====== ====== ======
% 1.75 1.83 1.88
=============================== ====== ====== ======
Bozymchak kt 284 113 52
========================== ==== ====== ====== ======
% 0.84 0.98 0.99
=============================== ====== ====== ======
Average grade % 1.97 2.36 2.31
Copper in ore
mined kt 24.3 25.8 24.3
========================== ==== ====== ====== ======
The East Region and Bozymchak extracted 1,236 kt of ore in Q1
2016, an increase of 144 kt or 13% compared to Q4 2015. The volume
of ore mined at Bozymchak in the quarter doubled to feed the
optimised Bozymchak concentrator, which operated at 100% of design
capacity during Q1 2016. In the East Region ore output was slightly
below the level mined in Q4 2015 as ore output decreased, as
expected, across all of the mines except Artemyevsky.
Ore output was 18% higher than in Q1 2015 due to the increased
volume mined at Bozymchak.
Ore extraction at Orlovsky in Q1 2016 was 4% lower than the
previous quarter and 3% below the prior year period as mining
continued at deeper horizons. Copper grades returned to 3.49% from
the elevated level of 4.20% in Q4 2015, when mining had moved to a
copper rich area.
At Artemyevsky, ore output was stable compared to Q4 2015. The
copper grade improved to 1.62% from 1.43% in the previous quarter,
resulting in a 14% increase in copper in ore mined to 5.1 kt.
Ore extraction at the Irtyshsky mine decreased by 5% in Q1 2016
compared to Q4 2015 and by 3% compared to Q1 2015, as anticipated
in the mine plan. The grade also reduced to 1.56% compared to 1.64%
in Q4 2015 and 1.74% in Q1 2015, when mining activity temporarily
moved through higher metal grade areas.
Ore extraction and copper grades continued to decline at
Yubileyno-Snegirikhinsky in Q1 2016 compared to Q1 2015 and Q4
2015. It is expected that the mine's reserves will be fully
exploited in 2016.
Copper processing
Q1 Q4 Q1
2016 2015 2015
=== ===================================== ====== ====== ======
Copper in concentrate kt 21.3 23.0 21.5
=================================== ===== ====== ====== ======
Orlovsky concentrator kt 10.7 13.5 11.0
=================================== ===== ====== ====== ======
Nikolayevsky concentrator kt 6.2 5.9 7.2
=================================== ===== ====== ====== ======
Belousovsky concentrator kt 2.3 2.6 2.6
=================================== ===== ====== ====== ======
Bozymchak concentrator kt 2.1 1.0 0.7
=================================== ===== ====== ====== ======
Copper cathode equivalent(1) kt 19.7 22.3 19.1
==================================== ==== ====== ====== ======
(MORE TO FOLLOW) Dow Jones Newswires
April 28, 2016 02:00 ET (06:00 GMT)
(1) Includes finished metal produced and the finished metal
equivalent of concentrate sold in the period.
Copper in concentrate production in Q1 2016 of 21.3 kt was 1.7
kt, or 7% below the volume produced in Q4 2015 as copper in ore
mined declined in the East Region, partially offset by an increased
contribution from Bozymchak.
Copper in concentrate output at the Orlovsky concentrator
reduced by 21% compared to Q4 2015, reflecting the elevated copper
grade of 4.20% in Q4 2015. Lower copper grades also resulted in a
slightly reduced recovery rate. The output from Orlovsky in Q1 2016
was in line with the volume and recovery rate achieved in Q1 2015,
which had a comparable copper ore feed grade.
The Nikolayevsky concentrator benefitted from the higher copper
grade material mined at Artemyevsky in Q1 2016, which more than
offset the reduced grade at Yubileyno-Snegirikhinsky and resulted
in an increase in copper in concentrate output of 0.3 kt, or 5%
compared to Q4 2015.
The Belousovsky concentrator, which processes ore from the
Irtyshsky mine, produced 2.3 kt of copper in concentrate, a
reduction of 0.3 kt, or 11% compared to both Q4 and Q1 2015,
reflecting both lower grades and a reduction in ore processed.
Copper in concentrate production at Bozymchak doubled in Q1 2016
compared to Q4 2015, when the concentrator was closed for 36 days
to complete optimisation works. Following these works, the
concentrator has operated at its design capacity throughout Q1
2016.
To ensure the timely processing of concentrate produced in Q4
2015 and to avoid a build-up of inventory levels, a one-off sale of
Bozymchak concentrate to a third party processor in Kazakhstan was
completed in January. The concentrate contained 0.9 kt of copper,
5.2 koz of gold and 34 koz of silver in concentrate. The metal
content in this concentrate has been converted into finished metal
equivalent figures based on the paid metal and reported as copper
cathode, gold bar and silver granule equivalent within the
production figures for Q1 2016.
The East Region and Bozymchak is on-track to achieve full year
production guidance of 70-75 kt following copper cathode equivalent
production of 19.7 kt in Q1 2016.
Zinc
Q1 Q4 Q1
2016 2015 2015
======================= ==== ====== ====== ======
Zinc bearing
ore mined kt 952 979 999
====================== ===== ====== ====== ======
Grade % 2.99 3.09 3.23
====================== ===== ====== ====== ======
Zinc in ore mined kt 28.4 30.2 32.3
====================== ===== ====== ====== ======
Zinc in concentrate kt 19.9 21.0 25.1
===================== ====== ====== ====== ======
Zinc in ore mined in Q1 2016 was 28.4 kt, a reduction of 1.8 kt
or 6% versus Q4 2015 and 3.9 kt or 12% versus Q1 2015. The lower
output reflects the expected reduced zinc grades at all mines in
the East Region except Yubileyno-Snegirikhinsky, where mining moved
through a higher grade zone in February and March.
The main drivers of the reduction in zinc in ore mined were the
Artemyevsky and Orlovsky mines. At Artemyevsky, mining is
continuing in a transitional zone with low by-product grades and
these lower grades are expected to continue for approximately 2
years. At Orlovsky there was a reduction in the zinc grade in Q1
2016 from 5.03% to 4.81% as a high grade section was mined in Q4
2015.
Zinc in concentrate production in Q1 2016 was 19.9 kt,
reflecting lower zinc in ore output and represents a 5% and 21%
decrease compared to Q4 2015 and Q1 2015 respectively. The Group's
guidance is for 70-75 kt of zinc in concentrate in 2016.
Gold
Q1 Q4 Q1
2016 2015 2015
========================= ===== ====== ====== ======
Gold bearing
ore mined kt 1,236 1,092 1,051
======================== ====== ====== ====== ======
Grade g/t 0.80 0.73 0.71
======================== ====== ====== ====== ======
Gold in ore mined koz 31.7 25.7 24.1
======================== ====== ====== ====== ======
Gold in concentrate koz 17.5 11.5 10.7
======================== ====== ====== ====== ======
Gold bar equivalent(1) koz 12.7 6.4 6.4
======================== ====== ====== ====== ======
(1) Includes finished metal produced and the finished metal
equivalent of concentrate sold in the period.
The East Region and Bozymchak extracted 31.7 koz of gold in ore
in Q1 2016, a 23% increase versus Q4 2015 and a 32% increase versus
Q1 2015. The higher volume was largely due to Bozymchak where gold
in ore mined more than doubled to 14.4 koz. In Q4 2015 Bozymchak
mining was limited during a 36 day shut-down of the concentrator
for optimisation works.
Gold in ore mined at Bozymchak in Q1 2016 was almost four times
the amount mined in the corresponding period in the prior year (Q1
2016: 14.4 koz, Q1 2015: 2.9 koz), reflecting the fully ramped up
concentrator in Q1 2015 and additional mining undertaken to access
the next block of ore.
Gold in concentrate output in Q1 2016 increased by 52% to 17.5
kt compared to Q4 2015 and by 64% compared to Q1 2015, mainly as a
result of higher output from Bozymchak.
Gold bar equivalent output in Q1 2016 almost doubled compared to
both Q4 2015 and Q1 2015 due to increased production from Bozymchak
in the quarter and the sale of 5.2 koz of gold in concentrate
produced at Bozymchak in Q4 2015 to a third party processor. As a
result of strong gold in concentrate production there was a
build-up of work in progress at the smelter in the last two months
of the quarter, with gold in concentrate awaiting processing into
gold bar.
Gold output in the East Region and Bozymchak is on track to
reach the 2016 guidance of 40-50 koz and, combined with Bozshakol,
to achieve the Group guidance of 90-120 koz.
Silver
Q1 Q4 Q1
2016 2015 2015
========================= ===== ====== ====== ======
Silver bearing
ore mined kt 1,236 1,092 1,051
======================== ====== ====== ====== ======
Grade g/t 35.9 41.6 48.1
======================== ====== ====== ====== ======
Silver in ore
mined koz 1,428 1,460 1,626
======================== ====== ====== ====== ======
Silver in concentrate koz 768 801 864
======================= ======= ====== ====== ======
Silver granule
equivalent(1) koz 749 686 895
======================== ====== ====== ====== ======
(1) Includes finished metal produced and the finished metal
equivalent of concentrate sold in the period.
Silver in ore mined decreased by 2% compared to Q4 2015 and by
12% compared to Q1 2015 due to declining grades and ore volumes
from the Yubileyno-Snegirikhinsky and Irtyshsky mines.
Silver in concentrate output in Q1 2016 was 768 koz, a 4%
decrease compared to Q4 2015 and an 11% decrease compared to Q1
2015, driven by lower grades across the East Region.
Silver granule equivalent production in Q1 2016 was 749 koz,
representing a 9% increase compared to Q4 2015, supported by a
release of work in progress at Balkhash. The Group is on track to
achieve the 2016 silver production guidance of 2,250-2,500 koz.
INTERIM MANAGEMENT STATEMENT
Financial performance
Sales Volumes
The following table sets out the sales volumes of the Group's
major products produced by the operations in the East Region,
Bozymchak and Aktogay. The comparative data is from the 31 March
2015 Interim Management Statement.
Q1 Q1
2016 2015
===================== ===== ======= =======
Copper cathode kt 22.9 17.8
===================== ===== ======= =======
Zinc in concentrate kt 18.5 24.5
===================== ===== ======= =======
Gold bar koz 8.0 6.4
===================== ===== ======= =======
Silver granule koz 562 873
===================== ===== ======= =======
Copper cathode sales totalled 22.9 kt in Q1 2016, 2.6 kt above
cathode production of 20.3 kt reflecting a reduction in goods in
transit. Copper cathode sales were 5.1 kt above Q1 2015 as there
was a build-up of finished goods inventory in the prior year period
and due to higher cathode production volumes in 2016 (Q1 2016: 20.3
kt vs Q1 2015: 19.1 kt). In addition to the cathode sales, there
was also a small volume of copper in concentrate sold, 1.2 kt,
which comprised a one-off sale of Bozymchak material built-up in Q4
2015 and a test sale of concentrate from initial Bozshakol
production. Regular sales shipments from Bozshakol are expected
during Q2 2016.
Sales of zinc in concentrate of 18.5 kt in Q1 2015 were 1.4 kt
below production due to a build-up of finished goods inventory.
Sales of zinc in concentrate were 6 kt below Q1 2015 reflecting
lower production.
Gold bar sales of 8 koz in Q1 2016 were in line with the East
Region and Bozymchak production volumes. In addition to the gold
bar sales, the Bozymchak concentrate sold contained 5.2 koz of gold
and the trial sale of Bozshakol material shipped to China contained
0.4 koz of gold.
Silver granule sales in Q1 2016 totalled 562 koz, 157 koz below
production as finished goods inventory increased.
Financial performance
Commodity Prices
(MORE TO FOLLOW) Dow Jones Newswires
April 28, 2016 02:00 ET (06:00 GMT)
The following table sets out the average realised prices for the
Group's major products:
Q1 Q1
2016 2015
===================== ========= ======= =======
Copper cathode $/tonne 4,649 5,749
===================== ========= ======= =======
Zinc in concentrate $/tonne 828 1,158
===================== ========= ======= =======
Gold bar $/tr.oz 1,173 1,228
===================== ========= ======= =======
Silver granule $/tr.oz 14.7 16.4
===================== ========= ======= =======
The following table sets out the average LME/LBMA prices:
Q1 Q1
2016 2015
======== ========= ======= =======
Copper $/tonne 4,672 5,818
======== ========= ======= =======
Zinc $/tonne 1,679 2,079
======== ========= ======= =======
Gold $/tr.oz 1,183 1,219
======== ========= ======= =======
Silver $/tr.oz 14.9 16.7
======== ========= ======= =======
The realised prices for the finished products sold will differ
from the average LME/LBMA prices during the quarter due to sales
not being made evenly over the period and due to the impact of
quotational period pricing. Premiums or discounts to metal exchange
prices negotiated with customers also impact average realised
prices.
The zinc in concentrate realised price is below the LME average
price for the finished product due to the deduction of treatment
and refining charges from the revenue derived from the sale of the
product.
Commodity Hedging
At 31 March 2016 there were no commodity hedges in place.
Exchange Rates
The KZT/$ exchange rate at 31 March 2016 was KZT/$ 343.06
compared to KZT/$ 339.47 at 31 December 2015. The average exchange
rate for Q1 2016 was KZT/$ 356.62, compared to an average rate of
KZT/$ 184.64 in Q1 2015.
Net debt and cash position
Net debt increased to $2,425 million at 31 March 2016 from
$2,253 million at 31 December 2015 as the Group continued to invest
in the development of the Bozshakol and Aktogay projects and as
interest payments of $79 million were made under the Group debt
facilities. In addition, there was a mineral extraction tax payment
of $22 million of which $10 million related to Bozshakol.
At 31 March 2016, gross debt (before amortised fees) was $3,572
million compared to $3,548 million at 31 December 2015, following
the drawing of $150 million under the China Development Bank
('CDB') Aktogay facility and principal repayments of $29 million,
$91 million and $6 million under the pre-export finance facility,
the CDB Bozshakol/Bozymchak facilities and the CDB Aktogay CNY
facility respectively. Of the gross debt (before amortised fees) at
31 March 2016 $1,813 million related to the CDB Bozshakol/Bozymchak
facilities, $1,389 million related to the CDB Aktogay facilities,
$320 million related to the PXF facility and $50 million to the
revolving credit facility with Caterpillar Financial Services (UK)
Limited. At 31 March 2016, $100 million remains available for
drawing under the CDB USD Aktogay facility.
Total cash and cash equivalents and current investments at 31
March 2016 amounted to $1,105 million, compared to $1,251 million
at 31 December 2015. Of these funds, $302 million is reserved for
the development of Aktogay under the CDB Aktogay facilities.
APPENDIX - GROUP PRODUCTION SUMMARY
Copper processing
Q1 Q4 Q1
East Region 2016 2015 2015
=================================== ====== ====== ======
Copper concentrate kt 102.4 117.3 107.3
============================= ==== ====== ====== ======
Copper in concentrate kt 19.2 22.0 20.8
============================= ==== ====== ====== ======
Bozymchak
============================= ==== ====== ====== ======
Copper concentrate kt 8.2 3.9 2.9
============================= ==== ====== ====== ======
Copper in concentrate kt 2.1 1.0 0.7
============================= ==== ====== ====== ======
Bozshakol
============================= ==== ====== ====== ======
Copper concentrate kt 6.6 - -
============================= ==== ====== ====== ======
Copper in concentrate kt 1.1 - -
============================= ==== ====== ====== ======
Total copper concentrate kt 117.2 121.2 110.2
============================= ==== ====== ====== ======
Total copper in concentrate kt 22.4 23.0 21.5
============================= ==== ====== ====== ======
Aktogay
============================= ==== ====== ====== ======
Ore to leach pads kt 4,360 878 -
============================= ==== ====== ====== ======
Grade % 0.38 0.36 -
============================= ==== ====== ====== ======
Copper cathode kt 20.3 22.7 19.1
============================= ==== ====== ====== ======
Copper cathode equivalent kt 21.5 22.7 19.1
============================= ==== ====== ====== ======
East Region kt 18.1 21.8 18.7
============================= ==== ====== ====== ======
Bozymchak(1) kt 1.6 0.5 0.4
============================= ==== ====== ====== ======
Aktogay oxide kt 1.5 0.4 -
============================= ==== ====== ====== ======
Bozshakol(1) kt 0.3 - -
============================= ==== ====== ====== ======
(1) Includes finished metal produced and the finished metal
equivalent of concentrate sold in the period.
Zinc
Q1 Q4 Q1
2016 2015
2015
========================== ======= ====== ====== ======
Zinc bearing ore
mined kt 952 979 999
========================== ======= ====== ====== ======
grade
Orlovsky (%) 4.81 5.03 3.99
========================== ======= ====== ====== ======
grade
Artemyevsky (%) 2.01 2.11 3.31
========================== ======= ====== ====== ======
grade
Irtyshsky (%) 2.96 3.06 3.29
========================== ======= ====== ====== ======
grade
Yubileyno-Snegirikhinsky (%) 0.66 0.43 1.30
========================== ======= ====== ====== ======
grade
Average (%) 2.99 3.09 3.23
========================== ======= ====== ====== ======
Zinc in ore mined kt 28.4 30.2 32.3
========================== ======= ====== ====== ======
Zinc in concentrate kt 19.9 21.0 25.1
========================== ======= ====== ====== ======
Gold
Q1 Q4 Q1
2016 2015 2015
=============================== =============== ====== ====== ======
Gold bearing ore
mined kt 6,245 7,162 1,051
============================== ================ ====== ====== ======
Orlovsky grade (g/t) 1.08 1.14 1.21
========================== ==================== ====== ====== ======
Artemyevsky grade (g/t) 0.30 0.37 0.37
========================== ==================== ====== ====== ======
Irtyshsky grade (g/t) 0.27 0.29 0.31
========================== ==================== ====== ====== ======
grade
Yubileyno-Snegirikhinsky (g/t) 0.24 0.19 0.39
============================ ================== ====== ====== ======
grade
Bozymchak (g/t) 1.58 1.82 1.78
============================ ================== ====== ====== ======
grade
Bozshakol (g/t) 0.28 0.32 -
============================ ================== ====== ====== ======
grade
Average (g/t) 0.39 0.38 0.71
============================ ================== ====== ====== ======
Gold metal in
ore mined koz 77.4 88.5 24.1
============================ ================== ====== ====== ======
East Region koz 17.3 19.1 21.2
=========================== =================== ====== ====== ======
Bozymchak koz 14.4 6.6 2.9
=========================== =================== ====== ====== ======
Bozshakol koz 45.7 62.8 -
=========================== =================== ====== ====== ======
Gold in concentrate koz 18.8 11.5 10.7
================================ ============== ====== ====== ======
East Region koz 5.6 5.9 7.0
================================ ============== ====== ====== ======
Bozymchak koz 11.9 5.6 3.7
================================ ============== ====== ====== ======
(MORE TO FOLLOW) Dow Jones Newswires
April 28, 2016 02:00 ET (06:00 GMT)
Bozshakol koz 1.3 - -
================================ ============== ====== ====== ======
Gold bar equivalent koz 13.0 6.4 6.4
================================= ============= ====== ====== ======
East Region koz 6.8 3.3 5.7
============================= ================= ====== ====== ======
Bozymchak(1) koz 5.9 3.1 0.7
============================= ================= ====== ====== ======
Bozshakol(1) koz 0.3 - -
============================= ================= ====== ====== ======
(1) Includes finished metal produced and the finished metal
equivalent of concentrate sold in the period.
Silver
Q1 Q4 Q1
2016 2015 2015
================================ =============== ====== ====== ======
Silver bearing
ore mined kt 6,245 7,162 1,051
================================= ============== ====== ====== ======
Orlovsky grade (g/t) 63.6 62.3 70.5
=========================== ==================== ====== ====== ======
Artemyevsky grade (g/t) 32.8 33.5 36.8
=========================== ==================== ====== ====== ======
grade
Irtyshsky (g/t) 51.6 59.6 66.1
============================== ================= ====== ====== ======
grade
Yubileyno-Snegirikhinsky (g/t) 9.5 12.3 14.5
============================== ================= ====== ====== ======
grade
Bozymchak (g/t) 9.7 9.2 10.1
================================ =============== ====== ====== ======
grade
Bozshakol (g/t) 1.6 2.0 -
================================ =============== ====== ====== ======
grade
Average (g/t) 8.4 8.0 48.1
================================ =============== ====== ====== ======
Silver in ore
mined koz 1,683 1,841 1,626
================================ =============== ====== ====== ======
East Region koz 1,339 1,427 1,609
============================ =================== ====== ====== ======
Bozymchak koz 89 33 17
=============================== ================ ====== ====== ======
Bozshakol koz 255 381 -
=============================== ================ ====== ====== ======
Silver in concentrate koz 776 801 864
=============================== ================ ====== ====== ======
East Region koz 689 765 840
=============================== ================ ====== ====== ======
Bozymchak koz 79 36 24
=============================== ================ ====== ====== ======
Bozshakol koz 8 - -
=============================== ================ ====== ====== ======
Silver granule equivalent koz 751 686 895
================================== ============= ====== ====== ======
East Region koz 710 665 889
============================= ================== ====== ====== ======
Bozymchak(1) koz 39 21 6
============================= ================== ====== ====== ======
Bozshakol(1) koz 2 - -
============================= ================== ====== ====== ======
(1) Includes finished metal produced and the finished metal
equivalent of concentrate sold in the period.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLLFLRSLIDFIR
(END) Dow Jones Newswires
April 28, 2016 02:00 ET (06:00 GMT)
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