Preliminary Results 2014

KAZ MINERALS PLC AUDITED results for the year ENDED 31 December 2014 

  • Restructuring completed 31 October 2014
  • Disposal Assets transferred to Cuprum Holding
  • Company re-named KAZ Minerals PLC
  • Repositioned as a low cost, high growth copper miner
  • Operational highlights – continuing operations
  • Copper cathode production +9% to 83.5 kt, upper end of guidance (2013: 76.8 kt)
  • Silver and zinc by-products in line or ahead of guidance
  • First shipment of concentrate from Bozymchak copper-gold project
  • Financial highlights – continuing operations
  • EBITDA from continuing operations (excluding special items) $355 million (2013: $359 million), with cost measures offsetting lower revenues
  • H2 2014 net cash cost of 107 USc/lb benefiting from the tenge devaluation, strong cost management and zinc by-product credits
  • Balance sheet
  • Received $1.25 billion proceeds from sale of stake in Ekibastuz GRES-1
  • Refinanced PXF facility, fully drawn at $349 million
  • Year end net debt $962 million
  • Undrawn facilities of $798 million and gross funds of $2,130 million as at 31 December 2014
  • Major growth projects on track
  • Bozshakol expected to commence commissioning with limited production in the fourth quarter of 2015
  • Capital expenditure in 2014 $0.5 billion, remaining $0.9 billion to be spent in 2015
  • Aktogay oxide on course for production in the fourth quarter of 2015, sulphide in 2017
  • Capital expenditure $0.4 billion in 2014, expenditure in 2015 expected to be $0.5-$0.7 billion
  • Acquired Koksay, our third major growth project for total consideration of $260 million including $35 million deferred to 2015
  • 2015 outlook
  • 2015 copper cathode production guidance for East Region and Bozymchak 80-85 kt
  • By-product grades expected to be temporarily lower in East Region
  • 2015 gross cash cost guidance of 280–300 USc/lb for operating mines

Oleg Novachuk, CEO said: “2014 was a year of transformational change for the Group. We successfully completed our Restructuring in October 2014 and this has repositioned KAZ Minerals on the global cost curve, retaining a portfolio of first and second quartile operating and development assets. We are excited to be entering the final stages of the construction of Bozshakol, the first of our major growth projects, and continuing the development of Aktogay. We anticipate the copper market will return to deficit as we ramp up output from our major growth projects.”

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