TIDMKAZ
RNS Number : 4743D
KAZ Minerals PLC
27 April 2017
KAZ MINERALS
PLC
6(TH) FLOOR
CARDINAL PLACE
100 VICTORIA
STREET
LONDON SW1E 5JL
Tel: +44 (0)
20 7901 7800
==================
27 April 2017
KAZ MINERALS GROUP Production Report for THE FIRST QUARTER Ended
31 MARCH 2017 AND INTERIM MANAGEMENT STATEMENT
l Copper production(1) increased by 16% to 52 kt in Q1 2017 (Q4
2016: 45 kt) as new mines ramp up
l On track to meet 2017 production guidance for all metals
l Bozshakol
-- 23 kt copper production(2) (Q4 2016: 21 kt)
-- Sulphide plant completed planned maintenance in January,
higher throughput in March
-- Clay plant ramping up in line with expectations, processed
495 kt of ore in Q1
l Aktogay
-- Sulphide concentrator commenced output in mid-February, 7 kt
copper production(2) in Q1
-- Copper in concentrate output benefitted from high grade in
transitional zone
-- SX/EW cathode output of 5 kt (Q4 2016: 6 kt), seasonal impact
of cold weather
l East Region and Bozymchak
-- Copper production(2) of 17 kt (Q4 2016: 18 kt)
-- Volumes supported by processing of stockpiled ore from
Yubileyno-Snegirikhinsky mine
-- By-product output on track for full year guidance
l Financial update
-- Net debt of $2,550 million at 31 March 2017, $1,098 million
of funds available
-- Q1 financial position supported by limited project spend and
refund of project VAT
-- 2017 project expenditure guidance for Aktogay reduced from
$265 million to less than $200 million, due to commissioning
efficiencies and operating synergies with Bozshakol
(1) Payable metal in concentrate and copper cathode from Aktogay
oxide ore.
(2) Payable metal in concentrate.
Oleg Novachuk, Chief Executive, said: "I am pleased to report
continued progress in the ramp up of our new mines, including an
excellent first quarter of production from sulphide operations at
Aktogay. The Aktogay concentrator commenced output in mid-February
and has produced 7 kt of copper. KAZ Minerals is delivering
industry-leading production growth as promised to the market and
was amongst the lowest cost copper producers globally in 2016."
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 three 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 2016, total copper
cathode equivalent output was 140 kt with by-products of 75 kt of
zinc in concentrate, 120 koz of gold bar equivalent and 3,103 koz
of silver bar equivalent.
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 copper in
concentrate production from sulphide ore commenced in February
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.
This announcement contains inside information.
GROUP PRODUCTION SUMMARY
Q1 Q4 Q1
2017 2016
2016
============================= ===== ======= ======= =======
Ore extraction kt 16,884 13,258 10,605
============================ ====== ======= ======= =======
Ore processed kt 7,700 5,971 1,518
============================ ====== ======= ======= =======
Average copper grade
processed % 0.80 0.81 1.67
============================ ====== ======= ======= =======
Ore to leach pads kt 4,213 3,247 4,360
============================= ===== ======= ======= =======
Copper production(1) kt 52.1 44.9 22.7
============================= ===== ======= ======= =======
Bozshakol kt 22.9 21.2 1.0
============================= ===== ======= ======= =======
Aktogay sulphide kt 7.2 - -
============================= ===== ======= ======= =======
Aktogay oxide kt 4.7 6.1 1.5
============================= ===== ======= ======= =======
East Region & Bozymchak kt 17.3 17.6 20.2
============================= ===== ======= ======= =======
Zinc in concentrate kt 15.5 19.2 19.9
============================= ===== ======= ======= =======
Gold production(2) koz 42.5 42.0 17.7
============================= ===== ======= ======= =======
Silver production(2) koz 757 985 706
============================= ===== ======= ======= =======
(1) Payable metal in concentrate and copper cathode from Aktogay
oxide ore.
(2) Payable metal in concentrate.
From 2017, the Group is reporting "copper production",
calculated as payable metal in concentrate produced and the copper
cathode from Aktogay oxide ore. "Gold production" and "silver
production" have also been introduced in 2017 and are calculated as
the payable metal in concentrate produced. Comparative figures have
been presented on the same basis.
Copper production increased by 16% to 52.1 kt from the prior
quarter, driven by the successful commissioning of the Aktogay
sulphide concentrator, which contributed 7.2 kt in Q1 2017, as well
as the continuing ramp up of Bozshakol. The contributions from
Bozshakol and Aktogay have resulted in a 130% increase in copper
production versus the prior year period.
Total ore extraction of 16.9 million tonnes represents an
increase of 27% and 59% versus the previous quarter and prior year
period respectively, providing feed to the Bozshakol and Aktogay
processing plants.
Ore processed increased by 29% in Q1 2017 compared to the
previous quarter and was significantly above the prior year period
as the Bozshakol and Aktogay sulphide concentrators raised
throughput. Of the 16.9 million tonnes of ore extracted, 7.7
million tonnes of ore was processed at concentrators, 4.2 million
tonnes of oxide ore was placed on leach pads at Aktogay and 5.1
million tonnes of clay ore was stockpiled at Bozshakol. The average
copper grade processed at concentrators of 0.80% was lower than the
1.67% grade in Q1 2016 when the majority of the Group's copper
production consisted of output from the higher grade underground
mines in the East Region.
Zinc in concentrate output reduced by 19% from Q4 2016 to Q1
2017 due to a temporarily lower zinc grade at Artemyevsky. Zinc in
concentrate production declined by 22% compared to the prior year
period, also due to the mine closure and a lower grade of zinc in
ore processed at Orlovsky.
Gold production was stable at 42.5 koz compared to 42.0 koz in
the previous quarter, as a 2.0 koz increase in output from
Bozshakol was offset by declining production from the East Region.
The 27.3 koz increase in contribution from Bozshakol led to
significantly higher gold production compared to Q1 2016.
Silver output decreased by 23% to 757 koz in Q1 2017 compared to
the previous quarter mainly due to lower East Region grades, but
increased by 7% compared to Q1 2016 as increased production from
Bozshakol more than offset lower output in the East Region.
BOZSHAKOL
Q1 Q4 Q1
2017 2016
2016
========================= ===== ====== ====== ======
Ore extraction kt 9,904 8,790 5,009
========================= ===== ====== ====== ======
Sulphide kt 4,255 4,493 1,554
========================= ===== ====== ====== ======
Clay kt 5,649 4,297 3,455
========================= ===== ====== ====== ======
Ore processed kt 5,060 4,916 301
========================= ===== ====== ====== ======
Copper
========================= ===== ====== ====== ======
Average copper grade
processed % 0.57 0.57 0.50
========================= ===== ====== ====== ======
Copper in ore processed kt 28.6 28.1 1.5
========================= ===== ====== ====== ======
Copper recovery rate % 83.7 79.0 71.3
========================= ===== ====== ====== ======
Copper in concentrate kt 24.0 22.2 1.1
========================= ===== ====== ====== ======
Copper production(1) kt 22.9 21.2 1.0
========================= ===== ====== ====== ======
Gold
========================= ===== ====== ====== ======
Average gold grade
processed g/t 0.33 0.31 0.30
========================= ===== ====== ====== ======
Gold recovery rate % 57.6 57.1 46.7
========================= ===== ====== ====== ======
Gold in concentrate koz 30.5 28.4 1.3
========================= ===== ====== ====== ======
Gold production(1) koz 28.5 26.5 1.2
========================= ===== ====== ====== ======
Silver production(1) koz 161 146 7
========================= ===== ====== ====== ======
(1) Payable metal in concentrate.
Ore extraction increased in the quarter by 13% to 9.9 million
tonnes, compared to 8.8 million tonnes in Q4 2016, to develop the
pit and support the ramp up of the sulphide concentrator and clay
plant. The rate of ore extraction has approximately doubled since
Q1 2016 (5.0 million tonnes) when the sulphide plant began
commissioning.
During Q1 2017 a total of 5.1 million tonnes of ore was
processed (Q4 2016: 4.9 million tonnes), with the majority passing
through the main sulphide concentrator. The average grade of ore
processed was stable at 0.57% (Q4 2016: 0.57%), in line with
expectations and ahead of the 0.50% material processed in Q1 2016
during initial commissioning. The sulphide concentrator underwent a
scheduled shutdown for a re-lining of the SAG mill and had minor
stoppages for maintenance in January and February. Throughput
levels at the concentrator have subsequently increased in
March.
Ore processed in the quarter includes 495 kt at a grade of 0.68%
handled by the clay plant, which commenced commissioning at the end
of September 2016. Extraction of clay ore in Q1 2017 was 5.6
million tonnes, the majority of which was stockpiled.
Copper production increased from 21.2 kt in Q4 2016 to 22.9 kt
in Q1 2017 including a 2.4 kt contribution from the clay plant.
Output from the main sulphide concentrator was lower than Q4 2016
due to the maintenance activities described above. Bozshakol is on
target to achieve its guided level of copper production in 2017 of
95-110 kt.
During the quarter, 2.1 kt of copper in concentrate was sent for
toll processing at the Balkhash smelter in Kazakhstan to take
advantage of available smelting capacity on attractive commercial
terms.
Gold output increased by 8% to 28.5 kt compared to the previous
quarter due to higher processing volumes, higher grades and an
improving recovery rate. The gold grade is expected to decline from
current levels later in 2017. Bozshakol is on track to achieve its
guided level of gold production in 2017 of 85-110 koz. Silver
production increased by 10% compared to Q4 2016, to 161 koz.
AKTOGAY
Q1 Q4 Q1
2017 2016
Oxide 2016
========================= ===== ====== ====== ======
Ore extraction kt 4,213 3,247 4,360
========================= ===== ====== ====== ======
Grade % 0.44 0.43 0.38
========================= ===== ====== ====== ======
Copper cathode kt 4.7 6.1 1.5
========================= ===== ====== ====== ======
Sulphide
========================== ==== ====== ====== ======
Ore extraction kt 1,806 97 -
========================== ==== ====== ====== ======
Ore processed kt 1,637 - -
========================== ==== ====== ====== ======
Average copper grade 0.80
processed % - -
========================== ==== ====== ====== ======
Copper in ore processed kt 13.0 - -
========================== ==== ====== ====== ======
Recovery rate % 57.7 - -
========================== ==== ====== ====== ======
Copper in concentrate kt 7.5 - -
========================== ==== ====== ====== ======
Copper production(1) kt 7.2 - -
========================== ==== ====== ====== ======
Total copper production kt 11.9 6.1 1.5
========================= ===== ====== ====== ======
(1) Payable metal in concentrate.
Oxide ore mined and placed on leach pads increased by 30% to 4.2
million tonnes compared to Q4 2016. Copper cathode output from the
SX/EW facility reduced in the quarter to 4.7 kt due to seasonal
fluctuations caused by cold weather, but was significantly above Q1
2016 when the plant was in commissioning. Production from oxide ore
at Aktogay is on track to achieve guidance of around 20 kt of
copper cathode in 2017, with higher production expected during the
warmer months of the year.
The mining of material quantities of sulphide ore commenced in
Q1 2017, in line with the commissioning of the main sulphide
concentrator, with 1.8 million tonnes mined and 1.6 million tonnes
processed at a copper grade of 0.80%. Grades in the initial layer
of sulphide ore are elevated due to the leaching of copper from
oxide ore into sulphide ore (supergene sulphide enrichment) and are
expected to reduce from these levels over the remainder of the
year. No significant issues have been encountered during
commissioning to date.
During the quarter, 2.5 kt of copper in concentrate produced at
Aktogay was sent for toll processing at the Balkhash smelter in
Kazakhstan to take advantage of available smelting capacity on
attractive commercial terms. Further material from Aktogay may be
sent to Balkhash for processing in 2017 depending on available
capacity.
Copper production from sulphide ore at Aktogay is on track to
achieve guidance of 45-65 kt for 2017 with total copper production
of 65-85 kt including oxide operations.
EAST REGION & BOZYMCHAK
Copper
Q1 Q4 Q1
2017 2016 2016
===================================== ====== ====== ======
Ore extraction kt 961 1,124 1,236
============================ ======== ====== ====== ======
Ore processed kt 1,003 1,055 1,217
============================ ======== ====== ====== ======
Orlovsky concentrator kt 276 290 343
============================ ======== ====== ====== ======
grade
(%) 3.87 3.88 3.48
============================ ======== ====== ====== ======
Nikolayevsky concentrator kt 319 362 434
============================ ======== ====== ====== ======
grade
(%) 1.52 1.31 1.60
============================ ======== ====== ====== ======
Belousovsky concentrator kt 155 160 173
============================ ======== ====== ====== ======
grade
(%) 1.50 1.52 1.55
============================ ======== ====== ====== ======
Bozymchak concentrator kt 253 243 267
============================ ======== ====== ====== ======
grade
(%) 0.90 0.88 0.86
============================ ======== ====== ====== ======
Average grade processed % 2.01 1.95 1.96
============================ ======== ====== ====== ======
Average recovery
rate % 91.0 90.3 89.3
============================ ======== ====== ====== ======
Copper in concentrate kt 18.3 18.6 21.3
============================ ======== ====== ====== ======
Orlovsky concentrator kt 9.8 10.4 10.7
============================ ======== ====== ====== ======
Nikolayevsky concentrator kt 4.4 4.2 6.2
============================ ======== ====== ====== ======
Belousovsky concentrator kt 2.1 2.1 2.3
============================ ======== ====== ====== ======
Bozymchak concentrator kt 2.0 1.9 2.1
============================ ======== ====== ====== ======
Copper production(1) kt 17.3 17.6 20.2
============================= ======= ====== ====== ======
(1) Payable metal in concentrate.
Copper production in the East Region and Bozymchak was stable at
17.3 kt (Q4 2016: 17.6 kt). Whilst mining activity at
Yubileyno-Snegirikhinsky ceased at the end of 2016, 80 kt of
stockpiled ore from the mine was processed in Q1 2017 and a further
131 kt is available for processing in Q2 2017. There was a 5%
reduction in ore processed in Q1 2017 compared to Q4 2016, offset
by a higher average copper grade and concentrator recoveries of
91.0% (Q4 2016: 90.3%).
Copper production was 14% lower compared to Q1 2016 as the prior
year period benefited from a full seven day week of operations at
the Orlovsky mine (reduced to six days from the second half of 2016
for ventilation maintenance works) and the operation of the
Yubileyno-Snegirikhinsky mine prior to its closure at the end of
2016.
The East Region and Bozymchak are on track to achieve 2017
copper production guidance of around 65 kt.
By-products
Q1 Q4 Q1
Zinc 2017 2016 2016
========================= ====== ====== ====== ======
Zinc bearing ore
processed kt 750 812 950
========================== ===== ====== ====== ======
Average grade processed % 2.89 3.21 2.97
========================== ===== ====== ====== ======
Average recovery
rate % 71.8 73.4 70.5
========================== ===== ====== ====== ======
Zinc in concentrate kt 15.5 19.2 19.9
========================== ===== ====== ====== ======
Gold
========================== ===== ====== ====== ======
Gold bearing ore
processed kt 1,003 1,055 1,217
========================== ===== ====== ====== ======
Average grade
processed g/t 0.78 0.83 0.81
========================= ====== ====== ====== ======
Average recovery
rate % 59.2 58.4 55.5
========================= ====== ====== ====== ======
Gold in concentrate koz 14.9 16.5 17.5
========================= ====== ====== ====== ======
Gold production(1) koz 14.0 15.5 16.5
========================= ====== ====== ====== ======
Silver
========================= ====== ====== ====== ======
Silver bearing
ore processed kt 1,003 1,055 1,217
========================= ====== ====== ====== ======
Average grade
processed g/t 31.6 41.9 36.4
========================= ====== ====== ====== ======
Average recovery
rate % 64.2 64.8 53.9
========================= ====== ====== ====== ======
Silver in concentrate koz 655 922 768
========================= ====== ====== ====== ======
Silver production(1) koz 596 839 699
========================= ====== ====== ====== ======
(1) Payable metal in concentrate.
Production of all by-products reduced versus the comparative
periods as a result of the closure of the Yubileyno-Snegirikhinsky
mine at the end of 2016 and a six day week at Orlovsky due to
ongoing ventilation works. In Q1 2017, by product output was also
temporarily reduced as the Nikolayevsky concentrator processed
lower grade material.
Zinc in concentrate output declined by 19% from Q4 2016 to Q1
2017 and by 22% compared to the prior year period. In addition to
the reduction in zinc containing ore volumes described above, in Q1
2017 lower grade zinc material was processed at Nikolayevsky, also
adversely impacting recovery rates.
Gold production from the East Region and Bozymchak reduced by
10% in Q1 2017 compared to Q4 2016 as a lower gold grade in ore was
processed. Gold production was 15% lower than Q1 2016 as the prior
year period benefitted from higher ore throughput and grades.
Silver output of 596 koz was 29% and 15% lower than Q4 2016 and
Q1 2016 respectively, due to lower silver grades at each of the
three East Region concentrators. Both comparative periods
benefitted from the mining of temporarily elevated silver grade
areas.
INTERIM MANAGEMENT STATEMENT
Financial performance
Sales Volumes
The following table sets out the sales volumes of the Group's
major products and includes pre-commercial sales volumes.
Q1 Q1
2017 2016
========================== ===== ======= =======
Copper cathode kt 26.6 22.9
========================== ===== ======= =======
Copper in concentrate(1) kt 23.9 1.2
========================== ===== ======= =======
Zinc in concentrate kt 15.8 18.5
========================== ===== ======= =======
Gold bar koz 14.9 8.0
========================== ===== ======= =======
Gold in concentrate(1) koz 24.0 5.0
========================== ===== ======= =======
Silver bar koz 907 562
========================== ===== ======= =======
Silver in concentrate(1) koz 190 33
========================== ===== ======= =======
(1) Shown as payable metal in concentrate.
Total copper sales were 50.5 kt, more than double the 24.1 kt
sold in Q1 2016. Copper cathode sales increased by 16% compared to
the prior year period, reflecting the contribution from the Aktogay
oxide plant, partly offset by lower production from the East
Region. Copper in concentrate sales volumes increased to 23.9 kt,
with sales of 18.3 kt from the Bozshakol sulphide plant and 4.3 kt
from the Aktogay sulphide plant. In Q1 2017, copper in concentrate
containing 2.0 kt of payable metal was dispatched from Bozshakol
for processing at the Balkhash smelter of which 0.8 kt was
recognised in cathode sales in the quarter. 2.4 kt of payable metal
was dispatched from Aktogay to Balkhash and remained unsold in the
quarter.
Net revenues prior to the achievement of commercial production
from the Aktogay sulphide plant are recognised as a deduction from
fixed assets.
Zinc in concentrate sales from the East Region decreased by 15%
(2.7 kt) in line with lower ore mined and processed at the East
Region operations.
The increase in gold sales volumes is due to the contribution
from Bozshakol and a small release of gold inventory at the
Balkhash smelter.
The increase in silver bar and concentrate sales volumes is
attributed to the contribution of concentrate volumes from the
Bozshakol operations and from the release of East Region and
Bozymchak material at the Balkhash smelter.
Commodity Prices
The following table sets out the average realised prices for the
Group's major products including pre-commercial sales from the
Aktogay sulphide project for the current period and for the Aktogay
oxide and Bozshakol sulphide projects in the comparative prior
period:
Q1 Q1
2017 2016
======================= ========= ======= =======
Copper cathode $/tonne 5,895 4,649
======================= ========= ======= =======
Copper in concentrate $/tonne 5,468 3,489
======================= ========= ======= =======
Zinc in concentrate $/tonne 2,024 828
======================= ========= ======= =======
Gold bar $/tr.oz 1,218 1,173
======================= ========= ======= =======
Gold in concentrate $/tr.oz 1,101 1,080
======================= ========= ======= =======
Silver bar $/tr.oz 17.6 14.7
======================= ========= ======= =======
Silver in concentrate $/tr.oz 16.8 13.7
======================= ========= ======= =======
The following table sets out the average LME/LBMA prices:
Q1 Q1
2017 2016
======== ========= ======= =======
Copper $/tonne 5,834 4,672
======== ========= ======= =======
Zinc $/tonne 2,781 1,679
======== ========= ======= =======
Gold $/tr.oz 1,219 1,183
======== ========= ======= =======
Silver $/tr.oz 17.4 14.9
======== ========= ======= =======
The realised prices for the products sold will differ from the
average LME/LBMA prices during the quarter due to sales not being
made evenly over the period. Premiums or discounts to metal
exchange prices negotiated with customers also impact average
realised prices. The copper, zinc, gold and silver in concentrate
realised prices are below their respective LME and LBMA average
prices due to the deduction of treatment and refining charges from
the revenue derived from the sale of the product.
Most of the Group's sales agreements are based on provisional
pricing with the final pricing usually determined by the average
market price of the respective metal in the month (for silver), the
month following (for copper cathode and zinc concentrate) or the
second month following (for copper concentrate) dispatch to the
customer. The volume of goods sold under quotational pricing has
significantly increased due to concentrate sales terms and the
increase in copper and zinc prices in Q1 2017 has resulted in
positive provisional pricing adjustments being recognised in the
quarter in respect of copper and zinc concentrate sales made in
2016 and early 2017, raising the reported realised prices. At 31
March 2017, the Group's provisionally priced volumes and their
respective average provisional prices were:
Q1 2017
======================= =================================
Volumes Provisional
price
======================= ===== ======== ================
Copper cathode kt 4.5 $/tonne 5,973
======================= ===== ======== ======== ======
Copper in concentrate kt 17.3 $/tonne 5,269
======================= ===== ======== ======== ======
Zinc in concentrate kt 2.0 $/tonne 1,757
======================= ===== ======== ======== ======
Gold koz 26.5 $/tr.oz 1,220
======================= ===== ======== ======== ======
Silver koz 130 $/tr.oz 17
======================= ===== ======== ======== ======
Commodity Hedging
At 31 March 2017, there were no commodity hedges in place.
Exchange Rates
The KZT/$ exchange rate at 31 March 2017 was KZT/$ 314.79
compared to KZT/$ 333.29 at 31 December 2016. The average exchange
rate for Q1 2017 was KZT/$ 322.46, compared to an average rate of
KZT/$ 356.62 in Q1 2016.
Net debt and cash position
Net debt decreased to $2,550 million at 31 March 2017 from
$2,669 million at 31 December 2016. Total cash and cash equivalents
at 31 March 2017 amounted to $1,098 million, largely unchanged from
the $1,108 million at 31 December 2016. Of these funds, $152
million is reserved for the development of Aktogay under the CDB
Aktogay facilities.
As previously announced, the Group received $166 million in VAT
refunds related to the Bozshakol and Aktogay construction projects,
partly offset by interest payments of $91 million under the Group
debt facilities. In addition, mineral extraction tax and royalty
payments of $53 million and income tax payments of $12 million were
made during the quarter.
At 31 March 2017, gross debt (before amortised fees) was $3,686
million compared to $3,817 million at 31 December 2016, following
the scheduled repayments on the CDB Bozshakol/Bozymchak facilities
of $91 million, the PXF facility of $35 million and the CDB Aktogay
CNY facility of $5 million. Of the gross debt (before amortised
fees) at 31 March 2017, $1,631 million related to the CDB
Bozshakol/Bozymchak facilities, $1,468 million to the CDB Aktogay
facilities, $300 million to the Development Bank of Kazakhstan
(DBK) facility, $247 million to the PXF facility and $40 million to
the revolving credit facility with Caterpillar Financial Services
(UK) Limited. At 31 March 2017, the Group's debt facilities were
all fully drawn.
Capital expenditure
The project spend in 2017 for Aktogay is now expected to be less
than $200 million, below the $265 million previously guided for the
year. Project costs have been revised downwards following a review
of the status of commissioning, which has progressed well.
Aktogay's project spend has also benefitted from a shared critical
spares strategy with the Bozshakol operations. Capital expenditure
guidance for Aktogay in 2018 remains unchanged at $370 million.
APPIX - GROUP PRODUCTION SUMMARY
Copper mining & processing
Q1 Q4 Q1
2017 2016 2016
================================ ======= ======= =======
Ore extraction kt 16,884 13,258 10,605
========================== ==== ======= ======= =======
Bozshakol kt 9,904 8,790 5,009
========================= ===== ======= ======= =======
Aktogay kt 6,019 3,344 4,360
========================= ===== ======= ======= =======
East Region kt 726 905 952
========================= ===== ======= ======= =======
Bozymchak kt 235 219 284
========================= ===== ======= ======= =======
Average grade mined % 0.66 0.67 0.65
========================= ===== ======= ======= =======
Copper in ore mined kt 111.0 88.6 68.7
========================= ===== ======= ======= =======
Ore processed kt 7,700 5,971 1,518
========================= ===== ======= ======= =======
Bozshakol kt 5,060 4,916 301
========================= ===== ======= ======= =======
Aktogay (sulphide) kt 1,637 - -
========================= ===== ======= ======= =======
East Region kt 750 812 950
========================= ===== ======= ======= =======
Bozymchak kt 253 243 267
========================= ===== ======= ======= =======
Average grade processed % 0.80 0.81 1.67
========================= ===== ======= ======= =======
Bozshakol % 0.57 0.57 0.50
========================= ===== ======= ======= =======
Aktogay (sulphide) % 0.80 - -
========================= ===== ======= ======= =======
East Region % 2.38 2.27 2.27
========================= ===== ======= ======= =======
Bozymchak % 0.90 0.88 0.86
========================= ===== ======= ======= =======
Copper in ore processed kt 61.8 48.7 25.4
========================= ===== ======= ======= =======
Bozshakol kt 28.6 28.1 1.5
========================= ===== ======= ======= =======
Aktogay (sulphide) kt 13.0 - -
========================= ===== ======= ======= =======
East Region kt 17.9 18.5 21.6
========================= ===== ======= ======= =======
Bozymchak kt 2.3 2.1 2.3
========================= ===== ======= ======= =======
Average recovery rate % 80.6 83.8 88.2
========================= ===== ======= ======= =======
Bozshakol % 83.7 79.0 71.3
========================= ===== ======= ======= =======
Aktogay (sulphide) % 57.7 - -
========================= ===== ======= ======= =======
East Region % 91.2 90.4 89.0
========================= ===== ======= ======= =======
Bozymchak % 89.6 89.7 91.6
========================= ===== ======= ======= =======
Aktogay oxide ore
to leach pads kt 4,213 3,247 4,360
========================= ===== ======= ======= =======
Grade % 0.44 0.43 0.38
========================= ===== ======= ======= =======
Copper production
Q1 Q4 Q1
Bozshakol 2017 2016 2016
===================================== ====== ====== ======
Copper concentrate kt 107.2 97.1 6.6
=============================== ==== ====== ====== ======
Copper in concentrate kt 24.0 22.2 1.1
=============================== ==== ====== ====== ======
Aktogay sulphide
=============================== ==== ====== ====== ======
Copper concentrate kt 27.5 - -
=============================== ==== ====== ====== ======
Copper in concentrate kt 7.5 - -
=============================== ==== ====== ====== ======
East Region
=============================== ==== ====== ====== ======
Copper concentrate kt 80.4 86.3 102.4
=============================== ==== ====== ====== ======
Copper in concentrate kt 16.3 16.7 19.2
=============================== ==== ====== ====== ======
Bozymchak
=============================== ==== ====== ====== ======
Copper concentrate kt 8.6 8.2 8.2
=============================== ==== ====== ====== ======
Copper in concentrate kt 2.0 1.9 2.1
=============================== ==== ====== ====== ======
Total copper concentrate kt 223.7 191.6 117.2
=============================== ==== ====== ====== ======
Total copper in concentrate kt 49.8 40.8 22.4
=============================== ==== ====== ====== ======
Copper production(1) kt 52.1 44.9 22.7
=============================== ==== ====== ====== ======
Bozshakol kt 22.9 21.2 1.0
=============================== ==== ====== ====== ======
Aktogay sulphide kt 7.2 - -
=============================== ==== ====== ====== ======
Aktogay oxide kt 4.7 6.1 1.5
=============================== ==== ====== ====== ======
East Region kt 15.4 15.8 18.2
=============================== ==== ====== ====== ======
Bozymchak kt 1.9 1.8 2.0
=============================== ==== ====== ====== ======
Copper cathodes kt 25.6 22.9 20.3
=============================== ==== ====== ====== ======
Bozshakol (toll processed) kt 0.9 - -
=============================== ==== ====== ====== ======
Aktogay sulphide (toll kt 0.5 - -
processed)
=============================== ==== ====== ====== ======
Aktogay oxide kt 4.7 6.1 1.5
=============================== ==== ====== ====== ======
East Region (toll
processed) kt 17.2 15.5 18.1
=============================== ==== ====== ====== ======
Bozymchak (toll processed) kt 2.3 1.3 0.7
=============================== ==== ====== ====== ======
(1) Payable metal in concentrate and copper cathode from Aktogay
oxide ore.
Zinc
Q1 Q4 Q1
2017 2016
2016
============================== ======= ====== ====== ======
Zinc bearing ore
mined kt 726 905 952
============================== ======= ====== ====== ======
Orlovsky kt 275 287 342
============================== ======= ====== ====== ======
Artemyevsky kt 294 323 319
============================== ======= ====== ====== ======
Irtyshsky kt 157 159 159
============================== ======= ====== ====== ======
Yubileyno-Snegirikhinsky kt - 136 132
============================== ======= ====== ====== ======
Zinc bearing ore
processed kt 750 812 950
============================== ======= ====== ====== ======
Orlovsky concentrator kt 276 290 343
============================== ======= ====== ====== ======
grade
(%) 3.99 4.38 4.79
====================================== ====== ====== ======
Nikolayevsky concentrator kt 319 362 434
============================== ======= ====== ====== ======
grade
(%) 1.78 2.20 1.53
====================================== ====== ====== ======
Belousovsky concentrator kt 155 160 173
============================== ======= ====== ====== ======
grade
(%) 3.20 3.37 2.97
====================================== ====== ====== ======
Average grade
processed % 2.89 3.21 2.97
============================== ======= ====== ====== ======
Zinc metal in
ore processed kt 21.7 26.1 28.3
============================== ======= ====== ====== ======
Orlovsky concentrator kt 11.0 12.7 16.5
============================== ======= ====== ====== ======
Nikolayevsky concentrator kt 5.7 8.0 6.7
============================== ======= ====== ====== ======
Belousovsky concentrator kt 5.0 5.4 5.1
============================== ======= ====== ====== ======
Average recovery
rate % 71.8 73.4 70.5
============================== ======= ====== ====== ======
Orlovsky concentrator % 72.6 72.4 72.2
============================== ======= ====== ====== ======
Nikolayevsky concentrator % 71.0 76.9 67.6
============================== ======= ====== ====== ======
Belousovsky concentrator % 70.6 70.8 68.8
============================== ======= ====== ====== ======
Zinc in concentrate kt 15.5 19.2 19.9
============================== ======= ====== ====== ======
Orlovsky concentrator kt 8.0 9.2 11.9
============================== ======= ====== ====== ======
Nikolayevsky concentrator kt 4.0 6.1 4.5
============================== ======= ====== ====== ======
Belousovsky concentrator kt 3.5 3.9 3.5
============================== ======= ====== ====== ======
Gold
Q1 Q4 Q1
2017 2016 2016
========================== =========== ======= ====== ======
Gold bearing
ore mined kt 10,865 9,914 6,245
========================= ============ ======= ====== ======
Bozshakol kt 9,904 8,790 5,009
============================ ========= ======= ====== ======
East Region kt 726 905 952
============================ ========= ======= ====== ======
Bozymchak kt 235 219 284
============================ ========= ======= ====== ======
Gold bearing ore
processed kt 6,063 5,971 1,518
============================ ========= ======= ====== ======
Bozshakol kt 5,060 4,916 301
============================ ========= ======= ====== ======
grade
(g/t) 0.33 0.31 0.30
============================ ========= ======= ====== ======
East Region kt 750 812 950
============================ ========= ======= ====== ======
grade
(g/t) 0.50 0.58 0.56
============================ ========= ======= ====== ======
Bozymchak kt 253 243 267
============================ ========= ======= ====== ======
grade
(g/t) 1.63 1.66 1.69
============================ ========= ======= ====== ======
Average grade processed g/t 0.40 0.41 0.71
============================ ========= ======= ====== ======
Gold in ore processed koz 78.1 77.9 34.4
============================ ========= ======= ====== ======
Bozshakol koz 52.9 49.7 2.9
============================ ========= ======= ====== ======
East Region koz 12.0 15.3 17.1
============================ ========= ======= ====== ======
Bozymchak koz 13.2 12.9 14.4
=========================== ========== ======= ====== ======
Average recovery
rate % 58.2 57.6 53.8
=========================== ========== ======= ====== ======
Bozshakol % 57.6 57.1 46.7
=========================== ========== ======= ====== ======
East Region % 34.5 38.4 32.7
=========================== ========== ======= ====== ======
Bozymchak % 81.5 82.1 82.5
=========================== ========== ======= ====== ======
Gold in concentrate koz 45.4 44.9 18.8
=========================== ========== ======= ====== ======
Bozshakol koz 30.5 28.4 1.3
=========================== ========== ======= ====== ======
East Region koz 4.1 5.9 5.6
=========================== ========== ======= ====== ======
Bozymchak koz 10.8 10.6 11.9
=========================== ========== ======= ====== ======
Gold production(1) koz 42.5 42.0 17.7
=========================== ========== ======= ====== ======
Bozshakol koz 28.5 26.5 1.2
=========================== ========== ======= ====== ======
East Region koz 3.9 5.5 5.3
=========================== ========== ======= ====== ======
Bozymchak koz 10.1 10.0 11.2
============================= ======== ======= ====== ======
Gold bar produced
(toll processed) koz 15.0 14.1 8.0
============================= ======== ======= ====== ======
East Region koz 4.6 4.7 6.8
============================= ======== ======= ====== ======
Bozymchak koz 10.4 9.4 1.2
============================= ======== ======= ====== ======
(1) Payable metal in concentrate.
Silver
Q1 Q4 Q1
2017 2016 2016
======================== ============= ======= ====== ======
Silver bearing
ore mined kt 10,865 9,914 6,245
========================= ============ ======= ====== ======
Bozshakol kt 9,904 8,790 5,009
========================= ============ ======= ====== ======
East Region kt 726 905 952
========================= ============ ======= ====== ======
Bozymchak kt 235 219 284
========================= ============ ======= ====== ======
Silver bearing
ore processed kt 6,063 5,971 1,518
======================= ============== ======= ====== ======
Bozshakol kt 5,060 4,916 301
======================= ============== ======= ====== ======
grade
(g/t) 1.68 1.66 1.95
============== ======= ====== ======
East Region kt 750 812 950
======================= ============== ======= ====== ======
grade
(g/t) 38.5 51.5 43.2
============== ======= ====== ======
Bozymchak kt 253 243 267
======================= ============== ======= ====== ======
grade
(g/t) 11.2 10.0 12.1
============== ======= ====== ======
Average grade
processed g/t 6.6 8.8 29.6
======================= ============== ======= ====== ======
Silver in ore
processed koz 1,293 1,685 1,443
======================= ============== ======= ====== ======
Bozshakol koz 273 262 19
======================= ============== ======= ====== ======
East Region koz 929 1,345 1,320
======================= ============== ======= ====== ======
Bozymchak koz 91 78 104
======================= ============== ======= ====== ======
Average recovery
rate % 64.5 64.3 53.8
======================= ============== ======= ====== ======
Bozshakol % 65.5 61.9 43.1
======================= ============== ======= ====== ======
East Region % 63.0 64.1 52.2
======================= ============== ======= ====== ======
Bozymchak % 76.4 77.3 75.7
======================= ============== ======= ====== ======
Silver in concentrate koz 834 1,084 776
======================= ============== ======= ====== ======
Bozshakol koz 179 162 8
======================= ============== ======= ====== ======
East Region koz 585 862 689
======================= ============== ======= ====== ======
Bozymchak koz 70 60 79
======================= ============== ======= ====== ======
Silver production(1) koz 757 985 706
======================= ============== ======= ====== ======
Bozshakol koz 161 146 7
======================= ============== ======= ====== ======
East Region koz 532 784 627
======================= ============== ======= ====== ======
Bozymchak koz 64 55 72
======================= ============== ======= ====== ======
Silver bar produced
(toll processed) koz 785 726 719
========================== =========== ======= ====== ======
Bozshakol koz 6 - -
======================= ============== ======= ====== ======
East Region koz 715 666 710
======================= ============== ======= ====== ======
Bozymchak koz 64 60 9
======================= ============== ======= ====== ======
(1) Payable metal in concentrate.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLLFSTSDIRFID
(END) Dow Jones Newswires
April 27, 2017 02:01 ET (06:01 GMT)
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