Kazakhmys cuts 2012 final dividend by more than 50%

DividendMax Ltd.

Kazakhmys cuts 2012 final dividend by more than 50%


o Group EBITDA (excluding special items) of $1,912 million impacted by lower commodity prices, rising industry costs and lower sales volumes of copper products

$1,364 million from own operations, joint venture and discontinued operations

$548 million contribution from ENRC

o Net unit cost of 174 USc/lb

Within the range set at the start of 2012

Cost management from copper operations a key focus in 2013

o Underlying Profit for the year of $492 million

Impacted by charge for disability benefits obligation of $207 million

Includes $127 million contribution from ENRC

EPS of $0.94 based on Underlying Profit

o Impairment charge of $2,223 million on holding in ENRC

Carrying value reduced to $2,027 million, equivalent to 375 pence per share

Holding has a market value of $1,367 million as at 25 March 2013

o Net debt of $707 million

Net debt increasing with development of major projects

Long-term funding of $4.2 billion in place for delivery of major projects

New corporate debt facility in place to provide reserve liquidity during development phase of major projects 

Dividend reduced to reflect lower profitability in keeping with flexible dividend policy

Final dividend already declared of 8.0 US cents per share

Full year dividend of 11.0 US cents per share

Total returns to shareholders since Listing of $1,776 million

Companies mentioned