Author: fuel

Q2 Production Report 2018

KAZ MINERALS GROUP Production Report for six months and THE second QUARTER Ended 30 June 2018

  • H1 2018 copper production1 increased 18% to 139.6 kt (H1 2017: 118.0 kt)
  • Aktogay sulphide concentrator achieves design throughput capacity
  • Operations on track to achieve 2018 production guidance for all metals
  • Bozshakol H1 copper production28 kt (H1 2017: 52.0 kt)
    • Average sulphide copper grade of 0.46% in Q2 (Q1 2018: 0.52%), in line with mine plan
    • Clay plant achieved 95% of design throughput capacity in Q2 (Q1 2018: 65%)
    • Strong H1 gold production2 of 62.3 koz (H1 2017: 62.9 koz)
  • Aktogay H1 copper production1 increases 83% to 60.5 kt (H1 2017: 33.0 kt)
    • Sulphide concentrator averaged 89% of design throughput capacity in Q2 compared to 66% in Q1, including a sustained period operating at 100% of design throughput capacity
    • Cathode production from oxide ore of 11.5 kt in H1 (H1 2017: 10.4 kt)
  • East Region and Bozymchak H1 copper production2 of 29.3 kt (H1 2017: 33.0 kt)
    • Planned idling of Nikolayevsky concentrator reduced processing volumes in H1
    • H1 gold2 (27.2 koz) and silver production2 (1,082 koz) represent good progress towards full year production targets
    • Zinc in concentrate production of 24.9 kt in H1 (H1 2017: 32.3 kt), due to concentrator idling and extraction from lower grade sections
Group production summary3 6m 2018 6m

2017

 Q2 2018 Q1 2018 Q2 2017
Copper production1 kt 139.6 118.0 72.3 67.3 65.9
Bozshakol kt 49.8 52.0 22.9 26.9 29.1
Aktogay kt 60.5 33.0 34.1 26.4 21.1
East Region & Bozymchak kt 29.3 33.0 15.3 14.0 15.7
Zinc in concentrate kt 24.9 32.3 10.7 14.2 16.8
Gold production2 koz 89.8 93.0 39.9 49.9 50.4
Silver production2 koz 1,637 1,756 785 852 961
  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: “In the first half of 2018 the Group delivered a strong operational performance, with the Aktogay sulphide concentrator achieving design throughput capacity for a sustained period. Higher throughput at Aktogay was the main driver of an 18% increase in copper production compared to the first half of 2017. The Group is on track to achieve its copper output target of 270-300 kt and by-product guidance in 2018.”

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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 458,379,033 ordinary shares.

The Company currently holds 11,480,935 ordinary shares in treasury and therefore the issued share capital of the Company which carries voting rights of one vote per share comprises 446,898,098 ordinary shares (excluding treasury shares).

The above figure of 446,898,098 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.

For further information please contact:

Susanna Freeman
Company Secretary
Tel: + 44 (0)20 7901 7826

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Report on Payments to Governments FY 2017

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 2017.

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 ($116,000) for activities related to the exploration, prospecting, discovery, development and extraction of minerals by project, government type and country, rounded to the nearest thousand US Dollars.

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

–

 15,708

–

 – –

–

 15,708

Irtyshsky – License

–

 11,574

–

–

 385 –

11,959

Orlovsky – License

–

26,098

 – –

–

–

26,098

Yubileyno-Snegirihinsky – License

–

2,347

–

 –

156

 – 2,503

Legal entity

 42,620

– 

 –

–

 –

3,863

 46,775

Total East Region

 42,620

55,727

292

 – 541 3,863

103,043

Aktogay license and legal entity

 11,659 33,441 13,075

–

806

601 

 59,582

Bozshakol license and legal entity

7,403

94,021

 34,158

–

 157

5,896

141,635

Koksay license and legal entity

 –

–

 –

–

–

– 

– 

Other legal entities

 168

128

–

 –

–

–

296
 

61,850

 183,317 47,525 –

1,504

 10,360

304,556

RECIPIENT

              

State Revenue Committee

61,850

 183,317

47,525

 – 698 –

293,390 

Local Authorities

–

 – – – 806

10,360

11,165
  61,850

183,317

47,525

 –

1,504

 10,360

304,556 
               

KYRGYZSTAN

              

Bozymchak licence and legal entity

– 

6,110 

 1,019

–

–

– 

7,129

RECIPIENT

              

State Tax Administration (central government)

–

5,176 

1,019

 – –

– 

 6,195

Local Authorities

–

 934 

–

 – – –

934
 

–

6,110

1,019

 –

–

–

 7,129
               

Payments to Governments

61,850

 189,427 48,544 – 1,504 10,360 311,685
  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 license.
  3. Infrastructure and social payments of $10.4 million made in Kazakhstan represent payments made to bodies, associations, trusts 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 infrastructure and social payments, as these benefit local communities.

 

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Holding(s) in Company

Notification of Transactions of Directors, Persons Discharging Managerial Responsibilities or Connected Persons

Koksay Project Investment by NFC

KAZ Minerals PLC (“KAZ Minerals” or the “Group”) announces an agreement to invest $70 million into the Group’s Koksay project by China Nonferrous Metal Industry’s Foreign Engineering and Construction Company Ltd (“Non Ferrous China” or “NFC”). Following the $70 million investment, which is subject to certain conditions precedent including regulatory approvals in Kazakhstan and China, NFC will hold a 19.4% stake in the Koksay project.

Koksay is a potential open pit copper mine development project in Kazakhstan, located around 230 kilometres from Almaty. The deposit has a mineral resource1 of 736 Mt at an average copper grade of 0.42%, with contained copper of 3.1 Mt.

The $70 million to be invested into the project entity by NFC will be ring-fenced for the development of Koksay, including a feasibility study which will determine the detailed design for mining and processing operations and the associated capital budget. The Board will review the results of the feasibility study to assess how and when to proceed with the project.

Oleg Novachuk, Chair, said: “We are pleased to welcome NFC as a partner in the Koksay project. We worked successfully with NFC in the construction of Bozshakol and Aktogay and we are looking forward to developing our relationship further as we assess this opportunity in Kazakhstan.”

1 Measured, indicated and inferred resources at 31 December 2017.

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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 458,379,033 ordinary shares.

The Company currently holds 11,505,933 ordinary shares in treasury and therefore the issued share capital of the Company which carries voting rights of one vote per share comprises 446,873,100 ordinary shares (excluding treasury shares).

The above figure of 446,873,100 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.

For further information, please contact:

Susanna Freeman

Company Secretary

Tel: + 44 (0)20 7901 7826

PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ANNOUNCEMENT

 

Holding(s) in Company

Result of Annual General Meeting 2018

KAZ Minerals PLC (the ‘Company’) announces that at its Annual General Meeting held today, all the resolutions put to shareholders were duly passed on a poll. The poll results showing the number of votes received for and against each resolution are shown below. The poll results represent approximately 81.5% of the total number of 446,873,100 Ordinary Shares in issue which carry voting rights of one vote per share.

The votes cast on resolutions 3, 6, 8, 9 and 10, relating to the election or re-election of the independent non-executive Directors, have been calculated separately. These resolutions were duly passed by a majority of votes cast by both Independent Shareholders as well as by a majority of votes cast by all Shareholders. The result of the votes cast by the Independent Shareholders (marked with an **) and the votes cast by all Shareholders are set out below.

The Company currently holds 11,506,933 Ordinary Shares in treasury which do not carry voting rights.

Full details of the resolutions passed, together with explanatory notes, are set out in the Notice of Annual General Meeting which is available on the Company’s website.

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Total Voting Rights

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

At the date of this announcement, the issued capital of the Company comprises 458,379,033 ordinary shares.

The Company currently holds 11,506,933 ordinary shares in treasury and therefore the issued share capital of the Company which carries voting rights of one vote per share comprises 446,873,100 ordinary shares (excluding treasury shares).

The above figure of 446,873,100 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.

For further information, please contact:

Susanna Freeman 

Company Secretary 

Tel: +44 (0)20 7901 7826

PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ANNOUNCEMENT