Kaz Minerals 2016 interim results

DividendMax Ltd.

Kaz Minerals 2016 interim results


Group copper cathode equivalent production increased by 43% in H1 2016 to 52.6 kt (H1 2015: 36.7 kt)

Bozshakol ramping up with over 60% of ore throughput capacity achieved in August to date

- On track to achieve commercial production in H2 2016

Group copper guidance narrowed to 135-145 kt and gold to 95-115 koz

- Commissioning works in Q2 limited output, full year Bozshakol copper output now expected to be 45-55 kt

- Strong copper and gold output in H1 from East Region and Bozymchak

- Silver guidance increased to 2,500-2,750 koz, as Bozshakol achieves payable silver grade during ramp up


EBITDA $115 million (H1 2015: $88 million)

Gross EBITDA of $147 million (H1 2015: $94 million)

- Includes $28 million of capitalised EBITDA from Bozshakol and $4 million from Aktogay oxide

Operating profit of $68 million (H1 2015: $15 million)

East Region and Bozymchak net cash cost of 72 USc/lb (H1 2015: 121 USc/lb)

- Gross cash cost falls 34% to 178 USc/lb (H1 2015: 270 USc/lb)

- Impact of devaluation of tenge and cost measures

- Gross cash cost guidance for 2016 reduced to 190-210 USc/lb

Bozshakol gross cash cost guidance for 2016 reduced to 140-160 USc/lb

Gross funds of $1,056 million as at 30 June 2016, net debt $2,531 million

- Financing outlook improved by ramp up at Bozshakol and reduced capital budget at Aktogay

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