Kazakhmys PLC Production Report for the First Quarter Ended 31 March 2012 and Interim Management Statement
l Extraction of copper in ore ahead of Q1 2011
§ Processing of ore impacted by severe weather and transportation issues
§ Copper cathode output from own concentrate of 65 kt in Q1 2012
§ Processing of stockpiled ore and Konyrat restart will raise output in H2
§ On track to deliver annual target of between 285 to 295 kt of copper cathode
l By-product output also on track for annual targets
§ Zinc in concentrate of 32 kt with strong recovery in output
§ Precious metals output ahead of the comparative period
l Kazakhmys Power
§ Strong domestic demand led to 11% increase in net power generated at Ekibastuz GRES-1 to 3,960 GWh
l Maintaining strong financial position
§ Balance sheet remains in net funds
§ Completed outstanding gold sales to National Bank of Kazakhstan for $115 million
§ Total of 10.6 million shares repurchased under buy-back programme for $150 million since September 2011
Oleg Novachuk, Chief Executive Officer, said: "It has been a challenging start to the year with exceptionally low temperatures disrupting the transportation and processing of mined ore. However, we have much to look forward to and report on in 2012. Stockpiles have been built up and will be processed over the course of the year, so that we remain on track with our annual targets. The power business continues to perform well and the additional turbine at Ekibastuz GRES-1 is due to be installed at the end of 2012, which will increase generating capacity by 20%. At the beginning of April, the contractors at Bozshakol, our first major growth project, mobilised a month ahead of schedule and the project is fully underway."
