Q2 2021 Production report

KAZ MINERALS PRODUCTION AND SALES REPORT FOR SIX MONTHS AND THE SECOND QUARTER ENDED 30 JUNE 2021

• Payable metal in concentrate and copper cathode from Aktogay oxide ore
• Payable metal in concentrate
• Payable metal in concentrate, toll processed metal and copper cathode from Aktogay oxide ore
• Payable metal in concentrate and toll processed metal

• Production highlights
  • H1 2021 copper production of 150.3 kt decreased by 2% (H1 2020: 153.8 kt) as higher production at Aktogay and East Region & Bozymchak was offset by lower production at Bozshakol.
    • Aktogay copper production increased by 3% to 69.9 kt (H1 2020: 67.6 kt) driven by higher ore throughput and a favourable recovery rate at the sulphide plant.
    • Bozshakol copper production fell by 11% to 53.9 kt (H1 2020: 60.4 kt) as higher ore throughput was offset by lower grade and recovery rate, as expected.
    • East Region & Bozymchak copper production of 26.5 kt rose by 3% (H1 2020: 25.8 kt) as an increase in throughput mitigated a decrease in average copper grades.
  • Q2 2021 copper production increased by 8% to 77.9 kt (Q1 2021: 72.4 kt) due to higher ore processed volumes at Bozshakol and East Region & Bozymchak and increased cathode output at Aktogay.
  • H1 2021 gold production of 82.9 koz fell by 24% (H1 2020: 109.7 koz) due to an expected reduction in grades at Bozshakol and East Region.
• Sales summary
  • H1 2021 Group copper sales of 137.0 kt were 9% below production as capacity limitations imposed at the Kazakhstan-China border associated with enhanced Covid-19 hygiene measures resulted in a build-up of finished goods inventory. Limitations on monthly shipments to China have continued in the second half of the year.
  • Rail capacity limitations have also resulted in lower sales of gold and silver in the first half of the year. Gold sales of 62.5 koz were 25% below production and silver sales of 1,411 koz were 15% below production.
  • Sales of zinc in concentrate have remained in line with production in H1 2021 as a greater proportion of material has been sold within Kazakhstan compared with H1 2020.

Andrew Southam, Chief Executive Officer, said: “KAZ Minerals has delivered a strong operational performance in the first half of 2021 with ore processing volumes rising across all business units leading to higher copper output at Aktogay and the East Region and Bozymchak. Copper production at Bozshakol reduced due to lower grades, in line with the mine plan. The Group has also benefited from increasing commodity prices, in particular for copper, over the first six months of the year.”

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