TIDMKAZ
RNS Number : 5557B
Kazakhmys PLC
29 October 2009
?
29 October 2009
Kazakhmys PLC Production Report for the Third Quarter Ended 30 September 2009
and Interim Management Statement
* Production remains on track to meet the full year target of 315 kt copper
cathode equivalent:
*
* Production in first 9 months of 2009 in line with the same period 2008
* Production of 82 kt benefited in Q3 from some continued use of stockpiled
material
* Q4 output is likely to be at a lower run rate, reflecting planned maintenance
work and timing of processing
* By-product output for the year to date remains positive:
*
* Gold production of 104 koz, a 13% increase compared to 9 months of 2008
* Silver production increased 9% to 13,196 koz
* Zinc in concentrate output of 109 kt, in line with 2008
* Kazakhmys Power saw strong recovery in demand during Q3:
*
* 22% increase in power generated in Q3 2009 from Q2 2009
* Market recovery continues and further growth expected in Q4 2009
* Net debt reduced to $1,398 million:
*
* Positive cash generation, supported by rising commodity prices
Oleg Novachuk, Chief Executive Officer, said: "This is another solid set of
results, demonstrating the continued management focus on operational efficiency.
In the fourth quarter we will carry out some maintenance work and may see a
rebuild of inventory, but we remain on track to meet our full year target of
copper cathode equivalent output of 315 kt."
For further information please contact:
+-------------------------+------------------------------------+------------------------+
| |
+-------------------------+
| Kazakhmys PLC | | |
+-------------------------+------------------------------------+------------------------+
| Kazakhmys PLC | | |
+-------------------------+------------------------------------+------------------------+
| John Smelt | Head of Corporate Communications | Tel: +44 20 7901 7882 |
| | | Tel: +44 78 7964 2675 |
+-------------------------+------------------------------------+------------------------+
| Irene Burton | Financial Analyst | Tel: +44 20 7901 7814 |
+-------------------------+------------------------------------+------------------------+
| Zulfira Mukhamedyarov? | Senior Manager - Media Relations | Tel: +77 27 266 3317 |
+-------------------------+------------------------------------+------------------------+
| Merlin | | |
+-------------------------+------------------------------------+------------------------+
| David Simonson | | Tel: +44 20 7726 8400 |
+-------------------------+------------------------------------+------------------------+
| Tom Randell | | Tel: +44 20 7726 8400 |
+-------------------------+------------------------------------+------------------------+
| Leonid Fink | | Tel: +44 20 7726 8400 |
+-------------------------+------------------------------------+------------------------+
Notes to Editors
Kazakhmys PLC is a leading international natural resources group with
significant interests in copper, gold, zinc, silver, power generation and
petroleum.
It is the largest copper producer in Kazakhstan and one of the top ten worldwide
with 20 mines, 10 concentrators and 2 copper smelters. Kazakhmys Copper
operations are fully integrated from mining ore through to the production of
finished copper cathode and rod. Total copper cathode equivalent produced in
2008 from own ore was 343 thousand tonnes. Production is backed by a captive
power supply and significant rail infrastructure.
Kazakhmys Copper produces significant volumes of other metals, including zinc,
silver and gold. In 2008, it produced 48 thousand tonnes of zinc metal and 137
thousand tonnes of zinc in concentrate. The Group is the fourth largest silver
producer in the world (17 million ounces produced in 2008).
Kazakhmys Gold, which acquired Eurasia Gold Inc in July 2007, includes
substantial new development and exploration opportunities. The Group produced
179 thousand ounces of gold in 2008 and has measured and indicated resources of
2.3 million ounces.
Kazakhmys Power owns the coal fired Ekibastuz GRES-1 plant, the largest in
Kazakhstan with a nameplate capacity of 4,000 MW. In addition, it owns the
Maikuben open cast coal mine, supplying around 20% of the power plant's fuel
requirements producing over 3.6 million tonnes of coal in 2008.
Kazakhmys Petroleum is continuing its work programme at the East Akzhar
exploration block, located on the eastern fringe of the Caspian depression,
which was acquired in April 2007.
Kazakhmys also owns MKM, an upstream copper products fabrication company in
Germany, which produces a range of pre- and semi-finished copper and copper
alloy products.
The Group is part of the FTSE-100 index of companies listed on the London Stock
Exchange and is also listed on the Kazakhstan Stock Exchange (KASE). It had
revenues of $5.2 billion in 2008 with EBITDA of $2.0 billion. The Group employs
some 67,000 people, principally in Kazakhstan. The Group's strategic aim is to
diversify and participate in the development of the significant natural resource
opportunities in Central Asia.
Copper Summary
Kazakhmys Copper Production
+-----------------------+--------+---------+---------+---------+---------+---------+
| |
+-----------------------+
| | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Ore extraction | '000 t | 24,411 | 26,706 | 8,398 | 8,253 | 9,235 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Average copper grade | % | 1.18 | 1.25 | 1.15 | 1.18 | 1.32 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Average zinc grade1 | % | 4.02 | 3.22 | 3.98 | 3.82 | 3.07 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper in concentrate | '000 t | 269.9 | 291.1 | 91.5 | 91.0 | 105.7 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| own concentrate | '000 t | 267.9 | 269.2 | 89.5 | 91.0 | 98.8 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| purchased | '000 t | 2.0 | 21.9 | 2.0 | - | 6.9 |
| concentrate | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper cathodes | '000 t | 256.9 | 275.4 | 83.1 | 88.2 | 101.1 |
| equivalent production | | | | | | |
| 2 | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| own concentrate | '000 t | 252.3 | 252.1 | 82.2 | 88.2 | 95.0 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| purchased | '000 t | 4.6 | 23.2 | 0.9 | - | 6.1 |
| concentrate | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| tolling concentrate | '000 t | - | 0.1 | - | - | - |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper rod | '000 t | 7.6 | 32.7 | 2.9 | 2.6 | 9.1 |
+-----------------------+--------+---------+---------+---------+---------+---------+
1 Complex ores only.
2 Includes copper sold in concentrate and cathode converted into rod.
Production in the first 9 months of the year shows the impact of suspended high
cost mines on reduced ore output. The suspension of these mines has been offset
by improved efficiency in existing operations and the additional benefit from
the use of stockpiled material. In Q3 there was some use of stockpiled material,
but at a reduced level, as stockpiles have now been largely utilised. Output in
Q4 2009 is likely to be lower than in Q3 2009, due to maintenance work and the
timing of material processing.
Ore output in the first 9 months of 2009 reduced by 9% to 24.4 million tonnes,
compared to the corresponding period in 2008, reflecting the reduction in the
number of operating mines. The decrease was partially offset by an increase in
output at continuing operations, which were assisted by the transfer of
equipment and personnel from the suspended mines. Production in 2009 was also
assisted by bringing into production Nurkazgan West underground mine in
Karaganda region. Extraction in Q4 may be slightly below Q3, as Taskura (part of
the North group of mines) will cease its production, as the ore body will have
been exhausted.
The average copper grade over the first 9 months of 2009 was 1.18%, compared to
1.25% in 2008. This was due to the suspension of output from the high grade
Akbastau mine in the Karaganda region at the end of 2008. This decline was
partially offset by improved grades at Zhomart mine in the Zhezkazgan Complex
and the suspension of output at the low grade Kounrad mine in Balkhash. Copper
grade in Q3 was slightly below Q2 2009 mainly due to declining grades at the
maturing Annensky mine, in the Zhezkazgan region.
Over the first 9 months of 2009, the production of copper in own concentrate was
in line with 2008, despite the lower levels of mined ore and metal grade.
Concentrate production benefited from the processing of stockpiled material,
particularly in the first six months of the year, and an improvement in recovery
rates.
Copper Summary
Kazakhmys Copper Production (continued)
Copper cathode equivalent production from own concentrate of 252 kt, to 30
September 2009, was in line with the same period in 2008, reflecting the output
of copper in concentrate.Output of cathode from own material in the final
quarter is expected to be lower than in Q3, due to lower production from
stockpiled material and timing of material processing. The decrease in the final
quarter should lead to the total cathode equivalent output for the year being in
line with the 2009 full year target of 315 kt.
By-products Summary
Kazakhmys copper By-products Production
+--------------------+----------+---------+---------+---------+---------+---------+
| |
+--------------------+
| | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+--------------------+----------+---------+---------+---------+---------+---------+
| Zinc in | '000 t | 108.8 | 104.6 | 32.4 | 36.6 | 38.2 |
| concentrate | | | | | | |
+--------------------+----------+---------+---------+---------+---------+---------+
| Zinc metal | '000 t | 8.6 | 35.2 | - | - | 10.6 |
+--------------------+----------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------+----------+---------+---------+---------+---------+---------+
| Silver | '000 oz | 13,198 | 12,124 | 4,051 | 4,709 | 3,794 |
+--------------------+----------+---------+---------+---------+---------+---------+
| own production1 | '000 oz | 13,196 | 12,123 | 4,051 | 4,708 | 3,794 |
+--------------------+----------+---------+---------+---------+---------+---------+
| tolling2 | '000 oz | 1.6 | 0.9 | - | 0.6 | - |
+--------------------+----------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------+----------+---------+---------+---------+---------+---------+
| Gold | '000 oz | 110.7 | 93.4 | 37.5 | 42.9 | 29.8 |
+--------------------+----------+---------+---------+---------+---------+---------+
| own production1 | '000 oz | 104.1 | 92.1 | 36.2 | 38.9 | 29.4 |
+--------------------+----------+---------+---------+---------+---------+---------+
| tolling2 | '000 oz | 6.6 | 1.3 | 1.3 | 4.0 | 0.4 |
+--------------------+----------+---------+---------+---------+---------+---------+
1 Includes slimes from purchased concentrate.
2Represents tolled materials provided via third parties.
Zinc by-product
Zinc in concentrate production for the 9 months of 2009 was 4% above the
corresponding period in 2008. Despite the reduction in ore output and metal
mined, zinc in concentrate production in 2009 benefited from the processing of
previously stockpiled material. Production was also assisted by an improvement
in recovery rates, supported by an upgrade of the Karagaily concentrator.
There was an increase in metal in ore mined in Q3 2009 compared to Q2
2009, with the recommencement of extraction at Abyz and an increase in grades in
the East region. These factors were not fully reflected in zinc in concentrate
production, which was 11% lower in Q3 than in Q2 2009, due to lower receipts of
material from a third party processor.
Silver by-product
The processing of stockpiled ore from Abyz and Akbastau, mainly in the first
half of the year, led to a 9% increase in silver production to 13,196 koz in the
nine months to 30 September 2009 from the same period in 2008. Production was
also assisted by an improvement in recovery rates and lower levels of work in
progress at the end of September 2009 compared to December 2008.
The production of silver in Q3 2009 was 14% below the previous period, due to an
increase in work in progress during the quarter.
Gold by-product
The production of gold from own material in the first 9 months of 2009 increased
to 104.1 koz, compared to 92.1 koz in the same period of 2008. The processing of
stockpiled material, mainly from Abyz mine, and an improvement in recovery
rates, supported by an upgrade at the Karagaily concentrator, led to the
increased production in the 9 month period.
Gold metal output declined by 7% in Q3 2009, compared to the previous quarter,
as Q2 benefited from a substantial release of work in progress.
Kazakhmys Copper Review by Region
Zhezkazgan Complex
+-----------------------+--------+---------+---------+---------+---------+---------+
| |
+-----------------------+
| | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Ore extraction | '000 t | 18,088 | 17,873 | 6,127 | 6,053 | 5,860 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Average copper grade | % | 0.87 | 0.83 | 0.86 | 0.87 | 0.88 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper concentrate | '000 t | 369.2 | 360.9 | 119.4 | 121.8 | 126.1 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper in concentrate | '000 t | 136.8 | 129.5 | 45.7 | 45.9 | 44.6 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper cathodes1 | '000 t | 84.1 | 132.7 | 28.5 | 24.5 | 48.7 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| own concentrate | '000 t | 84.1 | 131.5 | 28.5 | 24.5 | 47.8 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| purchased | '000 t | - | 1.2 | - | - | 0.9 |
| concentrate | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| tolling2 | '000 t | - | - | - | - | - |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper rod | '000 t | 7.6 | 32.7 | 2.9 | 2.6 | 9.1 |
+-----------------------+--------+---------+---------+---------+---------+---------+
1 Includes copper used to produce copper rod.
2Represents tolled materials provided via third parties.
Ore extraction during the 9 months in 2009 was slightly above the comparative
period which, combined with a modest increase in grade, led to higher production
of copper in concentrate. A more integrated approach to metal processing across
Kazakhmys Copper, led to the transfer of some concentrate from Zhezkazgan to the
smelter at Balkhash, so that the output of cathodes within Zhezkazgan smelter no
longer reflects the production of concentrate from within the Complex.
As already mentioned in the Q2 production report, there were a number of
operational changes within the Complex, although these did not lead to an
overall change in output volumes. Operations were suspended at the higher cost
West mine. This suspension was offset by a significant recovery at South mine,
which was affected in 2008 by repair work on the main shaft lifting equipment.
Both South and East mines also benefited from the transfer of personnel and
equipment from West mine.
Stepnoy and North mines increased their ore extraction by 15% and 6%,
respectively, over the first 9 months of the year, compensating for smaller
reductions elsewhere in the Complex. Stepnoy mine benefited from improved
equipment availability and the commissioning of a conveyer early in the
year, thereby improving ore transportation. North mine has temporarily benefited
from production at the short life Taskura open pit, within the North group of
mines. Mining operations at Taskura will cease in Q4 2009, as the deposit will
be exhausted.
The overall average copper grade achieved during the 9 months of 2009 rose to
0.87%, from 0.83% achieved during the corresponding period in 2008. The increase
was due to higher grade ore output from the relatively new Zhomart mine and
suspension of output from the low grade West mine. These changes were partly
offset by the lower ore grade at East mine and a gradual reduction of grade at
Annensky mine as the mine matures.
Kazakhmys Copper Review by Region
Zhezkazgan Complex (continued)
The higher level of copper in concentrate production reflects the change in
quantities of metal mined. The lower level of copper cathode production from own
concentrate during the 9 months of 2009 reflects two main factors:
* the direct sale of copper in concentrate to China - 20.4 kt , or 19.6 kt of
copper cathode equivalent;
* the transfer of copper concentrate to Balkhash smelter, to use the Group's two
smelters more efficiently whilst a furnace at Zhezkazgan is undergoing planned
maintenance.
Kazakhmys Copper Review by Region
Balkhash Complex
+-----------------------+--------+---------+---------+---------+---------+---------+
| |
+-----------------------+
| | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Ore extraction | '000 t | 1,686 | 2,354 | 551 | 589 | 930 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Average copper grade | % | 1.33 | 0.99 | 1.35 | 1.28 | 1.05 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper concentrate1 | '000 t | 144.3 | 203.1 | 50.7 | 47.4 | 96.0 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper in concentrate | '000 t | 26.0 | 28.9 | 9.4 | 8.3 | 13.3 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper cathodes | '000 t | 153.2 | 139.9 | 50.9 | 52.8 | 49.6 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| own concentrate | '000 t | 148.6 | 117.8 | 50.0 | 52.8 | 44.4 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| purchased | '000 t | 4.6 | 22.0 | 0.9 | - | 5.2 |
| concentrate | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| tolling2 | '000 t | - | 0.1 | - | - | - |
+-----------------------+--------+---------+---------+---------+---------+---------+
1 Excludes concentrate processed by third parties.
2Represents tolled materials provided via third parties.
Ore output at Balkhash during the first 9 months of 2009 was below the same
period in 2008, due to the suspension of operations at the low grade Kounrad
mine during Q4 2008. Metal in ore output was only 3% below the corresponding
period in 2008, as increased output from the higher grade Shatyrkul mine offset
the lost metal extraction at Kounrad. During H1 2008, production at Shatyrkul
was reduced while work was undertaken to develop a new shaft in order to improve
ventilation. Balkhash complex generally benefited from new equipment,
following investments made in the previous year.
The changes in copper grade reflect the suspension of production at Kounrad.
In 2008 ores from Akbastau and Nurkazgan, in the Karaganda region, were
processed at Balkhash, in order to utilise spare capacity while improvement
works were undertaken on the Karagaily and Nurkazgan concentrators. As this
additional processing at Balkhash has now ceased, with the suspension of
Akbastau and the use of Nurkazgan concentrator, copper in concentrate production
in the 9 months of 2009 has decreased by 10% compared to the same period in
2008.
The production of copper in concentrate was 13% higher in Q3 2009 compared to Q2
2009 as a result of reprocessing higher volumes of waste material, whilst metal
in ore mined remained in line with Q2 output.
Copper cathode production from own material during the 9 months of 2009
increased by 26% compared to 2008. This increase was due to the transfer of
concentrate from Zhezkazgan, bringing the production of copper cathodes at
Balkhash smelter to 148.6 kt in 2009.
Kazakhmys Copper Review by Region
East Region
+-----------------------+--------+---------+---------+---------+---------+---------+
| |
+-----------------------+
| | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Ore extraction | '000 t | 3,379 | 3,576 | 1,124 | 1,135 | 1,322 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Average copper grade | % | 2.87 | 2.82 | 2.81 | 2.89 | 2.76 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper concentrate1 | '000 t | 450.7 | 427.7 | 148.1 | 147.1 | 150.5 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper in concentrate | '000 t | 82.0 | 81.2 | 26.7 | 27.8 | 28.9 |
+-----------------------+--------+---------+---------+---------+---------+---------+
1Excludes concentrate processed by third parties.
Ore extraction in the East region during the first 9 months of 2009 was slightly
below the comparative period, leading to a decrease of mined metal in ore by
4%. Belousovsky mine was suspended at the start of the year, but this was offset
by an increase in output at the higher grade Yubileyno-Snegirikhinsky mine, as
some personnel and equipment were relocated from Belousovsky mine. At
Artemyevsky mine, as reported in H1 2009, production is constrained by
backfilling work. A new backfill cement plant is under construction and this
should assist in overcoming the production bottlenecks at Artemyevsky in 2010.
Copper in concentrate output actually increased over the first nine months of
2009, despite the lower metal in ore mined, as greater volumes from
Yubileyno-Snegirikhinsky were processed at Nikolayevsky concentrator at an
improved recovery rate.
Kazakhmys Copper Review by Region
Karaganda Region
+-----------------------+--------+---------+---------+---------+---------+---------+
| |
+-----------------------+
| | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Ore extraction | '000 t | 1,258 | 2,903 | 596 | 476 | 1,123 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Average copper grade | % | 0.90 | 2.13 | 0.87 | 1.02 | 2.12 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper concentrate | '000 t | 198.3 | 178.4 | 81.7 | 68.9 | 70.4 |
+-----------------------+--------+---------+---------+---------+---------+---------+
| Copper in concentrate | '000 t | 16.8 | 24.4 | 6.0 | 6.4 | 10.0 |
+-----------------------+--------+---------+---------+---------+---------+---------+
Ore output in Karaganda during the first 9 months of 2009 was significantly
below the corresponding period in 2008. This decrease was due to the suspension
of operations at the high grade Akbastau mine. The decision was taken to
preserve the ore body until a new concentrator is built nearby. This will
substantially reduce the transportation costs incurred in production as at
present the nearest concentrator is 220 km from the mine.
Ore output increased in Q3 2009 by 25% as the Nurkazgan West underground mine
gradually ramped up its production and operations recommenced at Abyz, following
the completion of stripping work.
The average copper grade over the first 9 month of 2009 decreased to 0.90%,
compared to 2.13% in 2008. The lower average copper grade reflects the
suspension of the high grade Akbastau mine. The reduction in grade in Q3 2009,
compared to Q2 2009, was due to a lower grade and higher output at Nurkazgan
West mine.
Production of copper in concentrate in Karaganda region decreased by 31% during
the 9 months of 2009 compared to 2008, generally reflecting the suspension of
mining at Akbastau. The regional numbers are also impacted by the processing of
ores from Kosmurun and Akbastau outside Karaganda during 2008, and the
processing in Karaganda during H1 2009 of stockpiled ore from Akbastau and Abyz.
Other Divisions Review
kazakhmys POWER PRODUCTION
+----------------------+-------+---------+---------+---------+---------+---------+
| |
+----------------------+
| | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+----------------------+-------+---------+---------+---------+---------+---------+
| Coal extraction | '000 | 2,593 | 2,578 | 940 | 749 | 807 |
| | t | | | | | |
+----------------------+-------+---------+---------+---------+---------+---------+
| Coal extraction | '000 | 2,593 | 1,184 | 940 | 749 | 807 |
| attributable to | t | | | | | |
| Kazakhmys* | | | | | | |
+----------------------+-------+---------+---------+---------+---------+---------+
| | | | | | | |
+----------------------+-------+---------+---------+---------+---------+---------+
| Net power generated | GWh | 6,171 | 7,965 | 2,410 | 1,981 | 2,459 |
+----------------------+-------+---------+---------+---------+---------+---------+
| Net power generated | GWh | 6,171 | 3,404 | 2,410 | 1,981 | 2,459 |
| attributable to | | | | | | |
| Kazakhmys1 | | | | | | |
+----------------------+-------+---------+---------+---------+---------+---------+
| Net dependable | MW | 2,258 | 1,951 | 2,268 | 2,256 | 1,782 |
| capacity2 | | | | | | |
+----------------------+-------+---------+---------+---------+---------+---------+
1Period from acquisition on 29th May 2008.
2The net dependable capacity is the real productive capacity of GRES-1. It is
calculated by taking the maximum design capacity of the generation units and
then factoring in the physical condition of the units (e.g. wear and tear) and
internal consumption of electricity.
Net power generated has recovered in Q3 2009, compared to the previous quarter,
and is similar to Q3 2008. For the year to date, however, net power generated
remains behind the same period of 2008, following a weak H1 2009.
The demand for electricity in Kazakhstan reduced significantly in Q4 2008 and
remained low at the start of 2009. This decrease reflected weakness in the
global economy, and major industrial groups with captive power generation sold
their surplus power onto the market. A moderate increase in demand was seen in
April 2009, and industrial groups began to reduce their sales to the market and
absorb more of their own captive power production. In addition, seasonal
maintenance outages at other power stations have enabled GRES-1 to gain market
share.
Net dependable capacity for the first nine months of 2009 increased by 307 MW,
compared with the same period of 2008, due to the major overhaul of Unit 6 in
2008 and planned maintenance on other units.
The major overhaul of Unit 5 started in mid April 2009 and is expected to be
completed in Q4 2009. This overhaul will raise the unit's gross dependable
capacity from 430 MW to the nameplate capacity of 500 MW.
Ore extraction at Maikuben West coal mine during the first 9 months of 2009 was
in line with the corresponding period in 2008. Q3 2009 coal output exceeded
output from the previous quarter and Q3 2008 by 26% and 16%, respectively,
reflecting stronger demand from power producers, including Ekibastuz GRES-1.
.
Other Divisions Review
kazakhmys gold PRODUCTION
+----------------------+---------+---------+---------+---------+---------+---------+
| |
+----------------------+
| | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+----------------------+---------+---------+---------+---------+---------+---------+
| Ore extraction | '000 t | 1,407 | 1,630 | 661 | 608 | 773 |
+----------------------+---------+---------+---------+---------+---------+---------+
| Gold ore grade | g/t | 1.40 | 1.50 | 1.33 | 1.38 | 1.50 |
+----------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+----------------------+---------+---------+---------+---------+---------+---------+
| Gold in ore to pads | '000 oz | 59.8 | 70.1 | 26.2 | 26.0 | 32.9 |
+----------------------+---------+---------+---------+---------+---------+---------+
| Gold precipitation | '000 oz | 35.2 | 42.0 | 15.6 | 13.0 | 20.1 |
+----------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+----------------------+---------+---------+---------+---------+---------+---------+
| Gold doré production | '000 oz | 35.3 | 41.9 | 15.6 | 13.6 | 19.8 |
+----------------------+---------+---------+---------+---------+---------+---------+
| Silver production | '000 oz | 33.8 | 31.4 | 14.9 | 12.5 | 10.5 |
+----------------------+---------+---------+---------+---------+---------+---------+
Ore extraction decreased from Q3 2008 and the 9 months of 2008 due to the
closure of the Zhaima deposit in September 2008. In Q3 2009, ore output rose
following maintenance work of equipment undertaken in 2009 at Mizek. Extraction
at Mizek and Mukur has moved to less mineral rich areas, resulting in the lower
gold grade achieved during the 9 months of 2009, compared to the same period in
2008.
Exploration and site development work continues as planned at the Bozymchak Gold
Project in Kyrgyzstan, following the completion of the feasibility study at the
beginning of 2009.
kazakhmys petroleum
Kazakhmys Petroleum is continuing its work programme at the Eastern Akzhar
exploration block. As previously reported, the testing of the first deep well
encountered technical difficulties, which are being rectified.
The drilling of the second deep well was completed at the beginning of September
2009 and preparation work is underway to start the testing of the well.
The drilling of a third deep well was started at the end of September. As at 28
October, 2,016 metres out of a projected 5,200 metres had been drilled.
3D seismic data covering the north western part of the licensed area, which was
obtained during 2009, is being processed and interpreted. The results are
expected to identify a prospective site for future deep well drilling.
Interim Management Statement
MATERIAL eVENTS AND tRANSACTIONS
Sale of 25% of Ekibastuz power plant to Samruk
On 13 October 2009, the Group announced the sale of a 25% stake in its Ekibastuz
GRES-1 power plant to the National Welfare Fund Samruk-Kazyna JSC
("Samruk-Kazyna") for a consideration of $339 million in cash, which will
primarily be used by Kazakhmys to repay debt. The transaction implies a gross
valuation for the Ekibastuz power plant of $1,356 million.
The value of the transaction was determined by reference to the price paid by
the Group when it acquired the Ekibastuz power plant in May 2008, plus
subsequent investments in the business by Kazakhmys. The transaction follows a
Memorandum of Understanding, signed in October 2008, between Kazakhmys and
Samruk-Energy JSC, a subsidiary of Samruk-Kazyna, to consider a strategic
partnership at Ekibastuz.
The transaction is subject to regulatory consents and approvals and completion
is expected by the end of 2009. Kazakhmys will retain management control of
Ekibastuz following the transaction.
Negotiation of loan facility
On 13 October 2009, the Group announced that it is in discussion with the China
Development Bank and Samruk-Kazyna regarding a potential corporate loan facility
of around $2 billion. The loan would help fund the development of the Group's
major growth projects.
Letter of credit
On 19 October 2009, the pledge over the ENRC PLC shares, which secured the
letter of credit issued in favour of AES Corporation, was removed and replaced
with cash collateral. The letter of credit, for a total value of $102 million,
arose following the early completion of the Ekibastuz and Maikuben West coal
mine management contracts with AES Corporation in March 2009. Following release
of the share pledge, all ENRC PLC shares held by the Group are free of any
security.
Interim Management Statement
fINANCIAL Performance
Sales volumes
The following table sets out the sales volumes of the major products produced by
Kazakhmys Copper:
+------------------------+---------+--------+---------+
| |
+------------------------+
| | | 9m | 9m |
| | | 2009 | 2008 |
| | | | |
+------------------------+---------+--------+---------+
| Copper cathodes | '000 t | 246.5 | 238.3 |
+------------------------+---------+--------+---------+
| Copper rod | '000 t | 6.9 | 31.0 |
+------------------------+---------+--------+---------+
| Copper in concentrate | '000 t | 20.4 | 2.9 |
+------------------------+---------+--------+---------+
| Total copper products | '000 t | 273.8 | 272.2 |
+------------------------+---------+--------+---------+
| | | | |
+------------------------+---------+--------+---------+
| Zinc metal | '000 t | 16.8 | 37.2 |
+------------------------+---------+--------+---------+
| Zinc in concentrate | '000 t | 98.5 | 66.2 |
+------------------------+---------+--------+---------+
| | | | |
+------------------------+---------+--------+---------+
| Gold | '000 oz | 102.9 | 95.0 |
+------------------------+---------+--------+---------+
| | | | |
+------------------------+---------+--------+---------+
| Silver | '000 oz | 12,700 | 12,250 |
+------------------------+---------+--------+---------+
Total copper product sales for the 9 months ended 30 September 2009 were in-line
with the same period in the prior year. Copper cathodes, sold into China and
Europe, benefited from a reduction in finished goods resulting in cathode and
rod sales volumes exceeding the level of production by 16.1 kt. In 2008, copper
rods were largely sold into China, however the premiums available in 2009 were
lower, so sales of copper rods were restricted to meeting local demand. Copper
in concentrate sales in 2008 were carried out on a trial basis into China. In
2009, sales of copper concentrate have continued on a monthly basis until
August. No further copper concentrate sales have been contracted for 2009 with
all copper concentrate expected to be processed into cathode and all material
for 2009 has now been contracted and sold.
The zinc smelter was suspended in 2009 with all zinc concentrate now being sold
rather than processed further into zinc metal. The sales recorded in the period
are the result of running down material at the smelter. Gold and silver sales
levels in the 9 months of 2009 have been broadly in-line with production
volumes.
Interim Management Statement
FINANCIAL PERFORMANCE (CONTINUED)
Commodity Prices
The following table sets out the average realised prices for the
major commodities:
+---------------+----------------------------------+----------+----------+-----------+
| |
+---------------+
| | | 9m | 9m |
| | | 2009 | 2008 |
| | | | |
+---------------+---------------------------------------------+----------+-----------+
| Copper1 | $/tonne | 4,580 | 8,050 |
+---------------+---------------------------------------------+----------+-----------+
| Zinc | $/tonne | 1,100 | 2,043 |
+---------------+---------------------------------------------+----------+-----------+
| Gold | $/tr.oz | 924 | 910 |
+---------------+---------------------------------------------+----------+-----------+
| Silver | $/tr.oz | 13.8 | 16.5 |
+---------------+---------------------------------------------+----------+-----------+
| Electricity tariff2 | KZT/kWh | 3.0 | 2.5 |
+---------------+----------------------------------+----------+----------+-----------+
1 The realised price excludes any impact from the copper hedges, mentioned
below.
2 2008 tariff is in respect of the period from acquisition on
29th May 2008.
The following table sets out the average LME/LBMA prices:
+-----------------+----------+-----------+----------+
| |
+-----------------+
| | | 9m | 9m |
| | | 2009 | 2008 |
| | | | |
+-----------------+----------+-----------+----------+
| Copper | $/tonne | 4,650 | 7,966 |
+-----------------+----------+-----------+----------+
| Zinc | $/tonne | 1,469 | 2,099 |
+-----------------+----------+-----------+----------+
| Gold | $/tr.oz | 930 | 892 |
+-----------------+----------+-----------+----------+
| Silver | $/tr.oz | 13.7 | 16.6 |
+-----------------+----------+-----------+----------+
Realised prices differ from the average market prices, because the timing of
sales tends not to occur evenly over the period. In 2009, the sale of zinc metal
mainly took place in first the quarter, while the LME price shown above is the
average for the nine months. Premiums or discounts to metal exchange prices,
agreed with customers, also impact realised average prices.
The electricity tariff is the average realised price of power sales from
Ekibastuz GRES-1 to Kazakhstan and Russia. The tariff within Kazakhstan has
risen significantly during 2009, which reflects improving demand and a move by
the authorities to raise tariff ceilings in order to encourage investment in the
sector.
Copper hedging
As previously announced, the Group entered into a hedging programme over
production of 8.5 kt per month during 2009. These hedges establish a price
protecting floor at $3,045 per tonne and a cap at $4,034 per tonne, with
the contracts expiring by 31 December 2009. The Group has made net settlements
under these contracts of $62.5 million for the nine months to 30 September 2009.
The market value of the unsettled portion of the contracts, as at 30 September
2009, was $(54.1) million.
Exchange rates
The KZT/$ exchange rate at 30 September 2009 was KZT 150.95 compared to KZT
150.41 at 30 June 2009, a movement of 0.4%. The average KZT/$ exchange rate for
the nine months to 30 September 2009 was KZT 146.73 compared to an average rate
of KZT 120.34 for the
Interim Management Statement
FINANCIAL PERFORMANCE (CONTINUED)
comparative period in 2008, a depreciation of 21.9% due to the devaluation of
the KZT in February 2009.
The weakening of the KZT against the US dollar gives rise to foreign currency
translation losses on the carrying value of net assets, which on consolidation
are charged directly to equity.
The devaluation has a beneficial impact on the profitability of the Kazakhmys
Copper mining business as its revenues are mostly based on US dollar metals
prices and some of its costs are denominated in local currency. However, there
is an adverse impact for Kazakhmys Power since its revenues are denominated in
tenge.
Interim Management Statement
fINANCIAL POSITION
Except as described in this statement, there has been no significant change in
the financial position of the Group since 30 June 2009.
Net debt
The net debt position of the Group, which consists of cash, current deposits and
borrowings, amounted to $1,398 million at 30 September 2009, compared to $1,568
million at 30 June 2009.
Cash and deposits increased to $541 million at 30 September 2009 from $491
million at 30 June 2009. Cash generation benefited from strengthening commodity
prices and higher power sales during the quarter which offset debt repayments on
the Group's principal debt facility of $131 million.
The Group's $150 million standby revolving credit facility remains undrawn.
Holding in ENRC PLC
The Group's holding of 334,824,860 shares in ENRC PLC had a market value of
$4,690 million based on a share price of 877 pence on 30 September 2009,
compared to a value of $3,620 million at 30 June 2009.
In October 2009, the Group received a dividend of $20 million from ENRC PLC.
Kazakhmys Copper Production Appendix
Copper MINing
+--------------------------+------------+---------+---------+---------+----------+---------+
| Zhezkazgan complex | 9m | 9m | Q3 | Q2 | Q3 |
| | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | |
+---------------------------------------+---------+---------+---------+----------+---------+
| North | ore ('000 | 2,883 | 2,712 | 970 | 978 | 1,050 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 0.76 | 0.76 | 0.76 | 0.74 | 0.77 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| East | ore ('000 | 3,836 | 4,010 | 1,292 | 1,285 | 1,330 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 0.65 | 0.80 | 0.66 | 0.65 | 0.76 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| South | ore ('000 | 3,899 | 2,212 | 1,355 | 1,389 | 616 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 0.69 | 0.65 | 0.68 | 0.69 | 0.61 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| West | ore ('000 | 69 | 1,724 | - | - | 597 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 0.72 | 0.53 | - | - | 0.58 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Stepnoy | ore ('000 | 2,550 | 2,223 | 847 | 858 | 742 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 0.81 | 0.82 | 0.81 | 0.80 | 0.86 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Annensky | ore ('000 | 2,418 | 2,508 | 815 | 747 | 701 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 0.75 | 0.88 | 0.62 | 0.79 | 0.97 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Zhomart | ore ('000 | 2,433 | 2,484 | 848 | 796 | 824 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 1.81 | 1.30 | 1.86 | 1.84 | 1.58 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Complex total | ore ('000 | 18,088 | 17,873 | 6,127 | 6,053 | 5,860 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Complex average | grade (%) | 0.87 | 0.83 | 0.86 | 0.87 | 0.88 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| |
+------------------------------------------------------------------------------------------+
| Balkhash complex | 9m | 9m | Q3 | Q2 | Q3 |
| | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | |
+---------------------------------------+---------+---------+---------+----------+---------+
| Kounrad | ore ('000 | - | 829 | - | - | 335 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | - | 0.28 | - | - | 0.28 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Sayak I, III | ore ('000 | 1,281 | 1,293 | 417 | 450 | 510 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 1.03 | 1.13 | 1.04 | 0.97 | 1.22 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Shatyrkul | ore ('000 | 405 | 232 | 134 | 139 | 85 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 2.29 | 2.72 | 2.32 | 2.29 | 3.03 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Complex total | ore ('000 | 1,686 | 2,354 | 551 | 589 | 930 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Complex average | grade (%) | 1.33 | 0.99 | 1.35 | 1.28 | 1.05 |
+--------------------------+------------+---------+---------+---------+----------+---------+
Kazakhmys Copper Production Appendix
Copper MINing (continued)
+--------------------------+------------+---------+---------+---------+----------+---------+
| East region | 9m | 9m | Q3 | Q2 | Q3 |
| | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | |
+---------------------------------------+---------+---------+---------+----------+---------+
| Nikolayevsky | ore ('000 | 413 | 377 | 163 | 150 | 185 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 1.93 | 1.62 | 1.33 | 2.18 | 1.50 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Artemyevsky | ore ('000 | 922 | 1,138 | 290 | 299 | 402 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 1.63 | 1.69 | 1.70 | 1.58 | 1.69 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Irtyshsky | ore ('000 | 360 | 363 | 128 | 105 | 126 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 1.51 | 1.39 | 1.54 | 1.49 | 1.44 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Belousovsky | ore ('000 | - | 177 | - | - | 55 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | - | 0.96 | - | - | 1.04 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Orlovsky | ore ('000 | 1,222 | 1,146 | 408 | 408 | 400 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 4.39 | 4.91 | 4.44 | 4.31 | 4.90 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Yubileyno-Snegirikhinsky | ore ('000 | 462 | 375 | 135 | 173 | 154 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 3.22 | 3.29 | 3.26 | 3.30 | 3.19 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Region total | ore ('000 | 3,379 | 3,576 | 1,124 | 1,135 | 1,322 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Region average | grade (%) | 2.87 | 2.82 | 2.81 | 2.89 | 2.76 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| |
+------------------------------------------------------------------------------------------+
| Karaganda region | 9m | 9m | Q3 | Q2 | Q3 |
| | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | |
+---------------------------------------+---------+---------+---------+----------+---------+
| Nurkazgan (West, North) | ore ('000 | 1,169 | 519 | 512 | 471 | 170 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 0.86 | 0.68 | 0.78 | 1.00 | 0.42 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Akbastau | ore ('000 | - | 1,723 | - | - | 706 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | - | 2.55 | - | - | 2.48 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Kosmurun | ore ('000 | - | 299 | - | - | 120 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | - | 2.73 | - | - | 2.94 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Abyz | ore ('000 | 89 | 362 | 84 | 5 | 127 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | grade (%) | 1.51 | 1.72 | 1.44 | 2.78 | 1.63 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Region total | ore ('000 | 1,258 | 2,903 | 596 | 476 | 1,123 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Region average | grade (%) | 0.90 | 2.13 | 0.87 | 1.02 | 2.12 |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Total | ore ('000 | 24,411 | 26,706 | 8,398 | 8,253 | 9,235 |
| | t) | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Average | grade (%) | 1.18 | 1.25 | 1.15 | 1.18 | 1.32 |
+--------------------------+------------+---------+---------+---------+----------+---------+
Kazakhmys Copper Production Appendix
Copper processing
+--------------------------+------------+---------+---------+---------+----------+---------+
| | 9m | 9m | Q3 | Q2 | Q3 |
| | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | |
+---------------------------------------+---------+---------+---------+----------+---------+
| Zhezkazgan complex | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper | '000 t | 369.2 | 360.9 | 119.4 | 121.8 | 126.1 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper in | '000 t | 136.8 | 129.5 | 45.7 | 45.9 | 44.6 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Balkhash complex | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper | '000 t | 144.4 | 203.1 | 50.7 | 47.4 | 96.0 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper in | '000 t | 26.0 | 28.9 | 9.4 | 8.3 | 13.3 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| East region | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper | '000 t | 450.7 | 427.7 | 148.1 | 147.1 | 150.5 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper in | '000 t | 82.1 | 81.2 | 26.8 | 27.8 | 28.9 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Karaganda region | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper | '000 t | 198.3 | 178.4 | 81.7 | 68.9 | 70.4 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper in | '000 t | 16.8 | 24.4 | 6.0 | 6.4 | 10.0 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Total own processed | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper | '000 t | 1,162.6 | 1,170.1 | 399.9 | 385.2 | 443.0 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper in | '000 t | 261.7 | 264.0 | 87.9 | 88.4 | 96.8 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Own ore processed by | | | | | | |
| third parties | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper | '000 t | 24.5 | 18.9 | 6.3 | 10.1 | 7.4 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper in | '000 t | 6.2 | 5.2 | 1.6 | 2.6 | 2.0 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Total own | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper | '000 t | 1,187.1 | 1,189.0 | 406.2 | 395.3 | 450.4 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper in | '000 t | 267.9 | 269.2 | 89.5 | 91.0 | 98.8 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Purchased concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper | '000 t | 7.6 | 78.7 | 7.5 | - | 24.8 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Copper in | '000 t | 2.0 | 21.9 | 2.0 | - | 6.9 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
| Total copper in | '000 t | 269.9 | 291.1 | 91.5 | 91.0 | 105.7 |
| concentrate | | | | | | |
+--------------------------+------------+---------+---------+---------+----------+---------+
Kazakhmys Copper Production Appendix
Copper smelter / refinery - copper cathodes production
+--------------------------+------------+---------+---------+---------+---------+---------+
| | 9m | 9m | Q3 | Q2 | Q3 |
| | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | |
+---------------------------------------+---------+---------+---------+---------+---------+
| Zhezkazgan smelter | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Own concentrate | '000 t | 84.1 | 131.5 | 28.5 | 24.5 | 47.8 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Purchased concentrate | '000 t | - | 1.2 | - | - | 0.9 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Sub - total | '000 t | 84.1 | 132.7 | 28.5 | 24.5 | 48.7 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Tolling | '000 t | - | - | - | - | - |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Total including tolling | '000 t | 84.1 | 132.7 | 28.5 | 24.5 | 48.7 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Balkhash smelter | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Own concentrate | '000 t | 148.6 | 117.8 | 50.0 | 52.8 | 44.4 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Purchased concentrate | '000 t | 4.6 | 22.0 | 0.9 | - | 5.2 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Sub - total | '000 t | 153.2 | 139.8 | 50.9 | 52.8 | 49.6 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Tolling | '000 t | - | 0.1 | - | - | - |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Total including tolling | '000 t | 153.2 | 139.9 | 50.9 | 52.8 | 49.6 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Grand total | '000 t | 237.3 | 272.6 | 79.4 | 77.3 | 98.3 |
+--------------------------+------------+---------+---------+---------+---------+---------+
Kazakhmys Copper Production Appendix
By-products Mining - Zinc
+--------------------------+------------+---------+---------+---------+---------+---------+
| ZINC | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| East region | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Nikolayevsky | grade (%) | 2.04 | 3.68 | 2.20 | 1.77 | 4.10 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Artemyevsky | grade (%) | 4.90 | 5.30 | 4.34 | 4.70 | 5.90 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Irtyshsky | grade (%) | 3.64 | 3.62 | 3.61 | 3.68 | 4.03 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Belousovsky | grade (%) | - | 1.92 | - | - | 1.79 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Orlovsky | grade (%) | 4.66 | 4.55 | 4.86 | 4.62 | 4.00 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Yubileyno-Snegirikhinsky | grade (%) | 2.43 | 3.57 | 2.47 | 2.22 | 3.04 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Region average | grade (%) | 3.99 | 4.37 | 3.91 | 3.81 | 4.39 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Karaganda region | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Kosmurun | grade (%) | - | 3.93 | - | - | 3.64 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Akbastau | grade (%) | - | 0.67 | - | - | 0.39 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Abyz | grade (%) | 4.89 | 3.49 | 4.84 | 5.64 | 3.67 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Region average | grade (%) | 4.89 | 1.51 | 4.84 | 5.64 | 1.23 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Overall average | grade (%) | 4.02 | 3.22 | 3.98 | 3.82 | 3.07 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Zinc in concentrate | ('000 t) | 108.8 | 104.6 | 32.4 | 36.6 | 38.2 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Zinc metal | ('000 t) | 8.6 | 35.2 | - | - | 10.6 |
+--------------------------+------------+---------+---------+---------+---------+---------+
Kazakhmys Copper Production Appendix
By-products Mining - Silver
+--------------------------+------------+----------+--------+---------+---------+---------+
| SILVER | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Zhezkazgan complex | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| North | grade | 11.64 | 9.94 | 12.04 | 11.11 | 8.57 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| East | grade | 18.93 | 18.62 | 18.54 | 20.25 | 17.73 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| South | grade | 17.89 | 13.01 | 17.66 | 17.17 | 13.86 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| West | grade | 17.01 | 14.49 | - | -- | 16.82 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Stepnoy | grade | 9.89 | 8.93 | 13.43 | 8.58 | 8.74 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Annensky | grade | 20.47 | 16.77 | 16.94 | 18.99 | 21.35 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Zhomart | grade | 8.15 | 7.58 | 9.25 | 7.08 | 8.38 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Region average | grade | 15.02 | 13.21 | 15.11 | 14.52 | 13.57 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Balkhash complex | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Kounrad | grade | - | 0.73 | - | - | 0.47 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Sayak I, III | grade | 5.17 | 5.22 | 5.22 | 4.80 | 5.35 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Shatyrkul | grade | 2.33 | 2.09 | 2.30 | 1.93 | 2.23 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Region average | grade | 4.49 | 3.33 | 4.51 | 4.12 | 3.31 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| East region | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Nikolayevsky | grade | 21.65 | 36.69 | 24.54 | 14.04 | 37.98 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Artemyevsky | grade | 89.36 | 103.09 | 76.55 | 88.55 | 124.89 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Irtyshsky | grade | 58.67 | 54.68 | 58.34 | 58.38 | 57.11 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Belousovsky | grade | | 35.77 | | | 28.08 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Orlovsky | grade | 64.27 | 61.74 | 64.02 | 62.60 | 55.82 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Yubileyno-Snegirikhinsky | grade | 27.84 | 43.15 | 25.75 | 27.41 | 31.94 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Region average | grade | 60.34 | 68.31 | 56.29 | 57.28 | 70.51 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Karaganda region | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Nurkazgan | grade | 2.40 | 2.17 | 1.83 | 3.18 | 2.03 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Akbastau | grade | - | 24.03 | - | - | 20.95 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Kosmurun | grade | - | 43.55 | - | - | 31.14 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Abyz | grade | 59.66 | 46.45 | 60.18 | 50.96 | 52.95 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Region average | grade | 6.47 | 24.94 | 10.08 | 3.68 | 22.78 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Overall average | grade | 20.12 | 20.99 | 19.57 | 19.04 | 21.81 |
| | (g/t) | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Silver in concentrate | ('000 oz) | 12,733 | 13,404 | 4,278 | 4,066 | 4,617 |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Own concentrate | ('000 oz) | 11,071 | 9,815 | 3,689 | 3,561 | 3,962 |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Own concentrate | ('000 oz) | 1,443 | 1,374 | 370 | 505 | - |
| processed by 3rd parties | | | | | | |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Purchased concentrate | ('000 oz) | 219 | 2,215 | 219 | - | 655 |
+--------------------------+------------+----------+--------+---------+---------+---------+
| Silver metal | ('000 oz) | 13,196 | 12,123 | 4,051 | 4,708 | 3,794 |
+--------------------------+------------+----------+--------+---------+---------+---------+
Kazakhmys Copper Production Appendix
By-products Mining - gold
+--------------------------+------------+---------+---------+---------+---------+---------+
| GOLD | | 9m | 9m | Q3 | Q2 | Q3 |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Balkhash complex | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Sayak I, III | grade | 0.34 | 0.38 | 0.29 | 0.29 | 0.42 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Shatyrkul | grade | 0.40 | 0.48 | 0.37 | 0.39 | 0.51 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Region average | grade | 0.36 | 0.40 | 0.31 | 0.32 | 0.43 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| East region | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Nikolayevsky | grade | 0.26 | 0.39 | 0.28 | 0.13 | 0.40 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Artemyevsky | grade | 1.09 | 1.18 | 0.86 | 1.04 | 1.44 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Irtyshsky | grade | 0.38 | 0.36 | 0.37 | 0.38 | 0.38 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Belousovsky | grade | - | 0.38 | - | - | 0.32 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Orlovsky | grade | 0.96 | 1.02 | 1.01 | 0.97 | 0.90 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Yubileyno-Snegirikhinsky | grade | 0.43 | 0.58 | 0.36 | 0.42 | 0.39 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Region average | grade | 0.78 | 0.86 | 0.72 | 0.74 | 0.86 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Karaganda region | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Nurkazgan | grade | 0.29 | 0.29 | 0.28 | 0.35 | 0.29 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Akbastau | grade | - | 0.82 | - | - | 0.72 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Kosmurun | grade | - | 2.09 | - | - | 0.93 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Abyz | grade | 5.53 | 4.14 | 5.54 | 5.38 | 5.18 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Region average | grade | 0.67 | 1.27 | 1.03 | 0.40 | 1.18 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Overall average | grade | 0.64 | 0.92 | 0.70 | 0.55 | 0.90 |
| | (g/t) | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Gold in concentrate | ('000 oz) | 104.1 | 94.4 | 38.0 | 34.4 | 34.6 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Own concentrate | ('000 oz) | 102.4 | 73.3 | 34.2 | 30.8 | 27.7 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Own concentrate | ('000 oz) | 9.8 | - | 2.1 | 3.6 | - |
| processed by 3rd party | | | | | | |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Purchased concentrate | ('000 oz) | 1.7 | 21.1 | 1.7 | - | 6.9 |
+--------------------------+------------+---------+---------+---------+---------+---------+
| Gold output | ('000 oz) | 104.1 | 92.1 | 36.2 | 38.9 | 29.4 |
+--------------------------+------------+---------+---------+---------+---------+---------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCFEDFUASUSEFS
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