Kazakhmys 2012 Half Yearly Results - dividend declared

DividendMax Ltd.

Kazakhmys 2012 Half Yearly Results - dividend declared

KAZAKHMYS PLC HALF-YEARLY REPORT FOR THE PERIOD ENDED 30 JUNE 2012

OPERATIONAL HIGHLIGHTS

  • Copper production in line with full year target
  • Copper cathode from own concentrate of 135 kt for first half of the year
  • By-product output on track for annual targets
  • Increase in demand for power from the domestic market
  • 10% increase in power generated at Ekibastuz GRES-1 to 7,057 GWh
  • 8% rise in average realised tariff at Ekibastuz GRES-1

GROWTH PROJECTS

  • Continued good progress with growth project pipeline
  • Development at Bozshakol on schedule and economics improved
  • Long lead items ordered for Aktogay
  • Ekibastuz GRES-1 $1 billion rehabilitation continues ahead of schedule
  • Commissioning of new unit already underway

FINANCIAL HIGHLIGHTS

  • Performance affected by lower metals prices and cost pressures
  • Group EBITDA (excluding special items) of $949 million
  • Impacted by temporary build up of copper inventory due to logistics issues in June
  • Net debt of $418 million
  • Strong cash position backed by long dated debt facilities
  • Net cash costs of 171 US cents per pound - in line with guidance

Impacted by reduced sales volumes and cost inflation

RETURNS TO SHAREHOLDERS

  • Completion of share buy-back of $165 million in May 2012
  • 2.2% of issued share capital purchased
  • Interim dividend declared of 3.0 US cents per share
  • Total returned to shareholders of $1,733 million since Listing

OUTLOOK

  • Positive outlook for copper underpinned by good demand from customers
  • Copper production on track to meet full year target of between 285 and 295 kt
  • Input cost pressures should ease in the remainder of 2012
  • Sound balance sheet with long term funding for growth projects
  • Feasibility study to be completed for Aktogay by the end of 2012
  • Complete key construction phase at Bozshakol
  • First output from Bozymchak expected in 2013
  • Commissioning of new unit at Ekibastuz GRES-1 in second half of 2012
  • 20% increase in generating capacity
  • Strong power demand and tariff curve to persist

Companies mentioned