Author: fuel

Holding(s) in Company

Q2 Production Report 2019

KAZ MINERALS GROUP PRODUCTION REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2019

Highlights
  • H1 2019 copper production1 rose 6% to 147.6 kt (H1 2018: 139.6 kt)
  • Increased concentrator availability led to quarterly copper output1 of 77.6 kt (Q1 2019: 70.0 kt)
  • On track to achieve full year copper production1 guidance of c.300 kt
Aktogay
  • Copper production1 in first half 22% higher at 74.1 kt (H1 2018: 60.5 kt)
  • Record copper production1 in Q2 of 37.4 kt (Q1 2019: 36.7 kt) due to sustained high sulphide throughput and grades, and seasonally stronger oxide production
  • Production in H2 will be impacted by scheduled maintenance, full year copper production1 guidance maintained at 130-140 kt
Bozshakol
  • H1 2019 copper production2 of 47.1 kt (H1 2018: 49.8 kt) as higher recoveries and throughput in main sulphide plant offset lower average grade and clay plant upgrade works
  • Higher grades and increased processing of clay ore expected in the second half
  • Copper and gold guidance maintained at 105-115 kt and 130-140 koz
East Region and Bozymchak
  • Copper production2 in H1 2019 of 26.4 kt (H1 2018: 29.3 kt), with Q2 output increasing to 16.9 kt (Q1 2019: 9.5 kt) following the restart of the Nikolayevsky concentrator
  • Copper, gold and silver guidance maintained
  • Zinc in concentrate output of 12.2 kt (Q1 2019: 6.2 kt), full year guidance revised to 40-45 kt

 

Group production summary3

 

 6m 2019

6m 2018

Q2 2019

Q1 2019

Q2 2018

Copper production1

kt

  147.6  139.6

77.6

70.0

72.3

   Aktogay

kt

 74.1  60.5 

37.4

36.7

34.1

   Bozshakol

kt

 471  49.8 

23.3

23.8

22.9

   East Region & Bozymchak

kt

 26.4  29.3 

16.9

9.5

15.3

Zinc in concentrate

kt

 18.4  24.9 

12.2

6.2

10.7

Gold production2

koz

 87.7  89.8 

44.3

43.4

39.9

Silver production2

koz

 1,552  1,637 

926

626

785
  1. Payable metal in concentrate and copper cathode from Aktogay oxide ore.
  2. Payable metal in concentrate.
  3. See appendix for metal production by asset.

 

Andrew Southam, Chief Executive Officer, said: “KAZ Minerals’ second quarter copper production rose 11% to 78 kt due to increased concentrator availability and efficient operations across the Group’s mines. Aktogay achieved record copper production of over 37 kt in the quarter and at Bozshakol the clay plant returned to full capacity, with the Group well positioned to achieve its 2019 copper guidance of c.300 kt.”

For further information please contact:

KAZ Minerals PLC

 

 

Chris Bucknall

Investor Relations, London

Tel: +44 20 7901 7882

Anna Mallere

Investor Relations, London

Tel: +44 20 7901 7814

Maksut Zhapabayev

Corporate Communications, Almaty

Tel: +7 727 244 03 53

Brunswick Group

 

 

Carole Cable, Charlie Pretzlik

 

Tel: +44 20 7404 5959

REGISTERED OFFICE
6th Floor, Cardinal Place, 100 Victoria Street, London SW1E 5JL, United Kingdom.

Please follow the link to download the full announcement

 

 

 

Holding(s) in Company

Holding(s) in Company

Holding(s) in Company

COMPLETION OF KOKSAY PROJECT INVESTMENT BY NFC

COMPLETION OF KOKSAY PROJECT INVESTMENT BY NFC

KAZ Minerals PLC (“KAZ Minerals” or the “Group”) confirms that the transaction announced on 8 June 2018 with China Nonferrous Metal Industry’s Foreign Engineering and Construction Company Ltd (“NFC”) has completed. Accordingly, NFC has invested $70 million for a 19.4% stake in the Group’s Koksay project.

PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ANNOUNCEMENT

 

Total Voting Rights

 

In conformity with 5.6.1R of the Disclosure Guidance and Transparency Rules (“the Rules”), the Company hereby notifies the market of the following:

At the date of this announcement, the total issued share capital of the Company comprises 480,723,977 ordinary shares. 

The Company currently holds 9,425,905 ordinary shares in treasury and therefore the issued share capital of the Company which carries voting rights of one vote per share comprises 471,298,072 ordinary shares (excluding treasury shares).

The above figure of 471,298,072 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Rules.

PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ANNOUNCEMENT

 

 

REPORT ON PAYMENTS TO GOVERNMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

KAZ Minerals PLC (“KAZ Minerals” or “the Group”) today provides information in accordance with DTR4.3A and The Reports on Payments to Governments Regulations 2014 (the “Regulations”) in respect of payments made by the Group for the year ended 31 December 2018.

Payments to Governments

The table below represents the Group’s consolidated report on payments made to governments under the Regulations. The table includes all payments made in excess of £86,000 ($114,000) for activities related to the exploration, prospection, discovery, development and extraction of minerals by project, government type and country, rounded to the nearest thousand US Dollars. Where the payment relates to activities that are reportable under the Regulations, as well as to activities which are not reportable, the payment has been included in its entirety if it is not possible to disaggregate it.

For the year ended 31 December 2018, payments to governments under the Regulations amounted to $314.5 million.

US$’000

Corporate income tax

Mineral Extraction Tax and Royalties(1)

Withholding tax

Signature bonus

Licence fee(2)

Infrastructure and social payments(3)

Total

KAZAKHSTAN

              

Artemyevsky – License

–

 12,584

–

 – –

–

 12,584

Irtyshsky – License

–

 7,552

–

–

 359 –

7,911

Orlovsky – License

–

25,520

 – –

–

–

25,520

Yubileyno-Snegirihinsky – License

–

 

–

 –

145

 – 145

Legal entity

 36,684

–

 –

–

 –

3,258

 39,942

Total East Region

 36,684

45,656

–

 – 504 3,258

86,102

Aktogay license and legal entity

 11,636 69,451 16,378

–

1,011

1,961 

 100,437

Bozshakol license and legal entity

2,206

84,385

 24,720

–

 148

4,171

115,630

Koksay license and legal entity

 –

–

 –

–

–

– 

– 

Other legal entities

 556

–

–

 –

–

–

556
 

51,082

 199,492 41,098 –

1,663

 9,390

302,725

RECIPIENT

              

State Revenue Committee

51,082

 199,492

41,098

 – 652 –

292,324 

Local 

government

–

 – – – 1,011

9,390

10,401
  51,082

199,492

41,098

 –

1,663

 9,390

302,725 
               

KYRGYZSTAN

              

Bozymchak licence and legal entity

– 

8,690 

 –

–

–

– 

8,690

RECIPIENT

              

State Tax Administration (central government)

–

5,766 

–

 – –

– 

 5,766

Local 

government

–

 2,924 

–

 – – –

2,924
 

–

8,690

–

 –

–

–

 8,690
 UNITED KINGDOM              
Legal entity paid to HMRC 3,098 – – – – – 3,098
               

Total Payments to Governments

54,180

 208,182 41,098 – 1,663 9,390 314,513
  1. The Mineral Extraction Tax is payable in Kazakhstan on the value of the mineral resources extracted based on the average price of the minerals on the London Metal Exchange or at the London Bullion Market Association. Royalties are paid by Bozymchak on sold metal.
  2. Payments made as required under subsoil use licence.
  3. Infrastructure and social payments represent payments made to bodies, associations, trusts, state-owned enterprises and other public interest groups located in the regions in which the Group operates. These payments include the transfer of assets at their book value, which the Group regards as social payments because they benefit the local communities.

PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ANNOUNCEMENT

 

New $600 million debt facility with Development Bank of Kazakhstan

KAZ Minerals PLC (“KAZ Minerals” or “the Group”) announces that it has signed a $600 million credit facility with the Development Bank of Kazakhstan JSC (“DBK”). The new DBK facility will provide financing for the Group’s Aktogay expansion project, which is currently in construction and will double the processing capacity of the Aktogay mine. The project was approved by the Board in December 2017 and is scheduled to be completed by the end of 2021.

The facility is expected to be drawn in 2019 and 2020 and extends for a term of 15 years until final maturity in 2034. The loan is repayable in instalments with the first repayment due three years after the date of first drawing, followed by semi-annual repayments in May and November of each year from November 2022 until the final repayment in 2034. The first drawing under the loan is expected during the third quarter of 2019.

The facility bears an interest rate of US dollar LIBOR + 3.90% and contains a financial covenant which is the same as the Group’s existing facilities with DBK and the China Development Bank based on a ratio of total liabilities to total assets. 

John Hadfield, Chief Financial Officer, said: “The new $600 million debt facility with DBK provides funding for the second sulphide concentrator at Aktogay, where construction is progressing well and is on track to deliver near-term copper production growth from 2021. The Aktogay expansion is a low risk, brownfield development that is expected to increase cash flow and establish a stronger platform to deliver the Baimskaya copper project in the Chukotka region of Russia. KAZ Minerals has an industry leading pipeline of value-accretive projects which will sustain production growth over the next decade, when the copper market is forecast to enter a period of significant supply deficit.”

 

For further information please contact:

KAZ Minerals PLC

 

 

Chris Bucknall

Investor Relations, London

Tel: +44 20 7901 7882

Anna Mallere

Investor Relations, London

Tel: +44 20 7901 7814

Maksut Zhapabayev

Corporate Communications, Almaty

Tel: +7 727 244 03 53

Brunswick Group

 

 

Carole Cable, Charlie Pretzlik

 

Tel: +44 20 7404 5959

 

PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ANNOUNCEMENT

Total Voting Rights

In conformity with 5.6.1R of the Disclosure Guidance and Transparency Rules (“the Rules”), the Company hereby notifies the market of the following:

At the date of this announcement, the total issued share capital of the Company comprises 480,723,977 ordinary shares.

The Company currently holds 9,425,905 ordinary shares in treasury and therefore the issued share capital of the Company which carries voting rights of one vote per share comprises 471,298,072 ordinary shares (excluding treasury shares).

The above figure of 471,298,072 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Rules.

PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ANNOUNCEMENT