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