27.01.2017
KAZ Minerals Group production report for 12 months and the fourth quarter ended 31 december 2016
  • Full year copper guidance met and by-product guidance exceeded in 2016
  • Copper cathode equivalent production1 of 140 kt (guidance 135-145 kt)

-        Copper output growth of 73% year-on-year (FY 2015: 81 kt)

-        New projects Bozshakol and Aktogay contributed 63  kt of new copper cathode equivalent production in 2016

-        Q4 copper cathode equivalent production of 43 kt (Q3 2016: 45 kt)

 

  • Bozshakol copper cathode equivalent output of 20 kt in Q4 (Q3 2016: 17 kt)

-        Ramp up on track, ore throughput averaged above 75% in Q4

-        50 kt of copper in concentrate and 45 kt copper cathode equivalent output in 2016

 

  • Aktogay oxide Q4 output of 6 kt, full year copper cathode output of 18 kt

-        6 kt of copper cathode output in Q4 2016 (Q3 2016: 7 kt), despite colder weather

-        Testing in progress at main sulphide concentrator, first copper production expected in Q1 2017

 

  • East Region and Bozymchak Q4 copper cathode equivalent output of 17 kt (Q3 2016:21 kt)

-        Q3 output benefited from a release of work in progress

 

  • By-product output exceeds full year guidance ranges

-        Stronger than anticipated by-product grades in the East Region in Q4 2016

-        Bozymchak operated at design capacity throughout 2016

-        Bozshakol 2016 gold bar equivalent output of 60 koz supported by elevated gold grades

1The Group’s finished goods “equivalent” production includes both finished metals produced and the finished metal equivalent of concentrate sold in the period.

 

Oleg Novachuk, Chief Executive, said:  “I am pleased that  we have  achieved  our copper and byproduct guidance  for 2016, a 73% increase in copper output on the prior year,  as we successfully ramped up Bozshakol and the Aktogay oxide plant. Operating costs at Bozshakol have temporarily benefited from lower than anticipated maintenance requirements during the ramp up period, and full year  gross cash costs  are expected to be in the region of  20%  below the  bottom of the  previously guided range of 140-160 USc/lb.  Our growth will continue in 2017 as Bozshakol  reaches  capacityand we commence production from sulphide ore at Aktogay.”