Kaz Minerals PLC Unaudited results for the year ended 31 December 2020

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STRONG FULL YEAR PERFORMANCE IN A CHALLENGING OPERATING ENVIRONMENT

 

FINANCIAL HIGHLIGHTS

• Revenues increased by 4% to $2,355 million (2019: $2,266 million) as higher commodity prices offset lower production and sales volumes
  • Copper sales of 300 kt (2019: 317 kt) below production of 306 kt (2019: 311 kt) due to year end shipment delays at Kazakhstan-China border
  • Gold sales of 205 koz (2019: 225 koz) above production of 196 koz (2019: 201 koz) following inventory release
• EBITDA¹ of $1,431 million representing a margin of 61% (2019: $1,355 million, 60% margin)
• Operating profit increased by 9% to $1,005 million (2019: $923 million)
• Strong cash generation due to higher net cash flows from operating activities of $807 million (2019: $512 million)
• First quartile net cash cost¹ of 64 USc/lb (2019: 77 USc/lb) as the benefit of a weaker tenge and strong by‑product revenues offset the impact of lower sales volumes and additional costs for Covid-19

 

FINANCIAL POSITION AND DIVIDEND

• Gross liquid funds¹ of $1,299 million (2019: $541 million) and borrowings of $3,900 million (2019: $3,300 million). $62 million (2019: $306 million) of undrawn facilities
• Net debt¹ reduced by $158 million to $2,601 million (2019: $2,759 million)
• No final dividend due to Recommended Offer

 

OPERATIONAL & PROJECT HIGHLIGHTS

• Full year copper production²of 306 kt (2019: 311 kt) and gold production³ of 196 koz (2019: 201 koz) with strong performance at all divisions, despite challenges presented by Covid-19

• 2021 copper production² guided at 275-295 kt as grades decline in line with mine plans at Aktogay and Bozshakol
• Aktogay expansion project remains on track to start up by the end of 2021

• Key project parameters for Baimskaya released in November 2020

 

COVID-19 RESPONSE

• Ensuring the safety, health and wellbeing of employees and contractors is the highest priority
• Comprehensive measures remain in place to protect staff and operations, including testing and isolation of personnel and increased stocking of spares and consumables
• Additional costs of around $40 million incurred in the year to protect sites from Covid-19
• Support has been provided to vulnerable communities in the Group’s countries of operation

 

 

$ million (unless otherwise stated)	20204	2019
Revenues	2,355	2,266
EBITDA1	1,431	1,355
Operating profit	1,005	923
Profit before tax	804	726
Underlying Profit1	650	571
Ordinary EPS - basic ($)	1.35	1.21
Ordinary EPS - diluted ($)	1.29	1.17
Net cash flows from operating activities	807	512
Free Cash Flow1	691	411
Gross cash cost1 (USc/lb)	143	140
Aktogay	121	102
Bozshakol	126	137
East Region & Bozymchak	244	234
Net cash cost1 (USc/lb)	64	77
Aktogay	116	98
Bozshakol	12	31
East Region & Bozymchak	56	104
Borrowings	3,900	3,300
Cash and cash equivalents	874	541
Current investments	425	–
Net debt1	2,601	2,759

1  Alternative Performance Measures (“APMs”) are used to assess the performance of the Group and are not defined or specified under IFRS. For further information on APMs, including justification for their use, please refer to the APMs section on page 58.

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

3  Payable metal in concentrate.

4  The financial results are prepared in accordance with IFRSs and are unaudited - see page 37 for further information.

 

Andrew Southam, Chief Executive Officer, said: “KAZ Minerals’ operations proved resilient in 2020, despite the challenges posed by Covid-19. The Group delivered strong production, which combined with improved commodity prices in the second half of the year, saw the Group report EBITDA of $1.4 billion at a 61% margin. The Group remains a first quartile copper producer with a highly competitive net cash cost of 64 USc/lb. I am pleased that the Aktogay expansion project remains on track to start up by the end of 2021.”

For further information please contact:

KAZ Minerals PLC
Ed Jack	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.

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