The KAZ Minerals Group's dividend policy, established at the time of Listing, is for the Board to consider the cash generation and financing requirements of the business before recommending a suitable dividend. This maintains flexibility, which is appropriate given the underlying cyclicality of a commodity business and the Group's growth ambitions.
The Group performed strongly in the first half of 2020, both operationally and financially. Pre-emptive measures were taken to protect sites from the Covid-19 pandemic and all of the Group's mines maintained output in the first half of 2020, whilst sales to customers have continued with only minor delays at the China-Kazakhstan border. The Group also continues to invest in growth at the Aktogay expansion and Baimskaya copper project, for which the Bankable Feasibility Study is due for completion by the end of 2020.
Taking into account these factors and the Group's flexible dividend policy, the Board has declared an interim dividend of 4.0 US cents per share in respect of the first half of 2020.
Other financial highlights include:
Revenues of $991 million (H1 2019: $1,052 million) as 11% lower average LME copper price was partially offset by 2% increase in copper sales volumes and 16% higher gold revenues
Copper sales of 146.9 kt (H1 2019: 144.4 kt) and gold sales of 98.6 koz (H1 2019: 108.0 koz), lower than production due to timing of shipments
EBITDA of $559 million, representing a 56% margin (H1 2019: $620 million, 59% margin)
Operating profit of $357 million (H1 2019: $410 million)
Strong cash generation, with net cash flows from operating activities of $310 million (H1 2019: $236 million)
First quartile net cash cost of 68 USc/lb (H1 2019: 80 USc/lb), supported by increased copper sales volumes, strong gold by-product credits and weaker tenge exchange rate during the period
Gross cash cost guidance lowered by 10 USc/lb for both Bozshakol (120-140 USc/lb) and East Region and Bozymchak (250-270 USc/lb)