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

Payable metal in concentrate and copper cathode from Aktogay oxide ore.
Payable metal in concentrate.
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

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Holding(s) in Company

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Holding(s) in Company

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Holding(s) in Company

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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.

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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.

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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.