Share Name Share Symbol Market Type Share ISIN Share Description
Kaz Minerals Plc LSE:KAZ London Ordinary Share GB00B0HZPV38 ORD 20P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  5.60 1.06% 534.80 534.60 535.20 574.00 532.00 538.60 3,451,376 16:35:26
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 1,695.4 503.4 89.4 6.3 2,521

KAZ Minerals PLC GROUP PRODUCTION REPORT

24/10/2019 7:00am

UK Regulatory (RNS & others)


Kaz Minerals (LSE:KAZ)
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2 Months : From Oct 2019 to Dec 2019

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RNS Number : 9324Q

KAZ Minerals PLC

24 October 2019

24 October 2019

KAZ MINERALS GROUP Production Report for NINE months

and THE THIRD QUARTER Ended 30 sEPTEMBER 2019

l Operational highlights

-- Record quarterly copper production(1) of 82.9 kt (Q2 2019: 77.6 kt) and gold production(2) of 58.5 koz (Q2 2019: 44.3 koz), driven by strong performance from Aktogay and Bozshakol

-- Copper production(1) on track for full year guidance of c.300 kt and gold production(2) now forecast to exceed the top end of guidance of 170-185 koz by around 5%

l Aktogay

-- Copper production(1) in Q3 of 37.3 kt, in line with previous quarter (Q2 2019: 37.4 kt), as high sulphide copper grade and throughput levels maintained

-- Full year copper production(1) expected to be at upper end of guidance range of 130-140 kt

l Bozshakol

-- Copper production(2) increased by 38% to 32.1 kt (Q2 2019: 23.3 kt) and gold production(2) rose by 47% to 43 koz (Q2 2019: 30 koz), a record quarter for Bozshakol

-- Ore processed increased by 30% to 8,378 kt (Q2 2019: 6,438 kt) as both plants operated without major scheduled maintenance and average copper and gold grades increased, as planned

-- Bozshakol expected to achieve full year copper production(2) guidance of 105-115 kt and the upper end of gold production(2) guidance of 130-140 koz

l East Region and Bozymchak

-- Copper production(2) of 13.5 kt (Q2 2019: 16.9 kt), due to lower processing volumes and grades in the period, on track to achieve full year copper production(2) guidance of c.55 kt

-- Gold production(2) of 14 koz (Q2 2019: 14 koz), now forecast to exceed full year guidance of 40-45 koz

 
                                                    9m 
 Group production summary(3)           9m 2019    2018   Q3 2019   Q2 2019   Q3 2018 
====================================  ========  ======  ========            ======== 
 Copper production(1)             kt     230.5   216.8      82.9      77.6      77.2 
=============================  =====  ========  ======  ========  ========  ======== 
    Aktogay                       kt     111.4    95.4      37.3      37.4      34.9 
=============================  =====  ========  ======  ========  ========  ======== 
    Bozshakol                     kt      79.2    75.0      32.1      23.3      25.2 
=============================  =====  ========  ======  ========  ========  ======== 
    East Region & Bozymchak       kt      39.9    46.4      13.5      16.9      17.1 
=============================  =====  ========  ======  ========  ========  ======== 
 Gold production(2)              koz     146.2   135.0      58.5      44.3      45.2 
=============================  =====  ========  ======  ========  ========  ======== 
 Silver production(2)            koz     2,496   2,578       944       926       941 
=============================  =====  ========  ======  ========  ========  ======== 
 Zinc in concentrate              kt      28.9    38.3      10.5      12.2      13.4 
=============================  =====  ========  ======  ========  ========  ======== 
 

(1) Payable metal in concentrate and copper cathode from Aktogay oxide ore.

(2) Payable metal in concentrate.

(3) See appendix for metal production by asset.

Andrew Southam, Chief Executive Officer, said: "I am pleased to report a record quarter from our large scale, low cost open pit mines, delivering 83 kt of copper and 59 koz of gold. Following output growth of 6% in the first nine months, the Group is well positioned to deliver full year copper production in line with guidance of around 300 kt, whilst gold production is now forecast to exceed guidance of 170-185 koz. The Group's operating assets provide a strong platform to support our growth pipeline."

For further information please contact:

 
 KAZ Minerals PLC 
======================  ===========================  =================== 
 Chris Bucknall          Investor Relations, London     Tel: +44 20 7901 
                                                                    7882 
                                                        Tel: +44 20 7901 
 Anna Mallere            Investor Relations, London                 7814 
 Maksut Zhapabayev       Corporate Communications,    Tel: +7 727 244 03 
                          Almaty                                      53 
======================  ===========================  =================== 
 Brunswick Group 
======================  ===========================  =================== 
 Carole Cable, Charlie                                  Tel: +44 20 7404 
  Pretzlik                                                          5959 
======================  ===========================  =================== 
 

REGISTERED OFFICE

6th Floor, Cardinal Place, 100 Victoria Street, London SW1E 5JL, United Kingdom.

NOTES TO EDITORS

KAZ Minerals PLC ("KAZ Minerals" or "the Group") is a high growth copper company focused on large scale, low cost, open pit mining in Kazakhstan, Russia and Kyrgyzstan. It operates the Bozshakol and Aktogay open pit copper mines in the Pavlodar and East Region of Kazakhstan, three underground mines and associated concentrators in the East Region of Kazakhstan and the Bozymchak copper-gold mine in Kyrgyzstan. In 2018, total copper production was 295 kt with by-products of 50 kt of zinc in concentrate, 183 koz of gold and 3,511 koz of silver. In January 2019, the Group acquired the Baimskaya project in the Chukotka region of Russia, one of the world's most significant undeveloped copper assets with the potential to become a large scale, low cost, open pit copper mine.

The Group's new operations at Bozshakol and Aktogay have delivered industry leading production growth and transformed KAZ Minerals into a company dominated by world class, open pit copper mines.

Bozshakol is a first quartile asset on the global cost curve with an annual ore processing capacity of 30 million tonnes and a remaining mine life of 38 years at an average copper grade of 0.37%. The mine and processing facilities commenced output in 2016 and will produce an average of 100 kt of copper cathode equivalent and 120 koz of gold in concentrate per year over the first 10 years of operations.

Aktogay is a large scale, open pit mine similar to Bozshakol, with a remaining mine life of 27 years (including the expansion project) at an average copper grade of 0.36% (oxide) and 0.33% (sulphide). Aktogay commenced production of copper cathode from oxide ore in December 2015 and copper in concentrate from sulphide ore in February 2017. The operating sulphide concentrator has an annual ore processing capacity of 25 million tonnes and the sulphide processing capacity will be doubled to 50 million tonnes with the addition of a second concentrator by the end of 2021. Aktogay is competitively positioned on the global cost curve and will produce an average of 100 kt of copper per year from sulphide ore until 2021, increasing to 170 kt per year from 2022 to 2027, after the second concentrator commences operations. Copper production from oxide ore will be in the region of 20 kt per annum until 2024.

The Peschanka deposit within the Baimskaya licence area in Russia has JORC resources of 9.5 Mt of copper at an average grade of 0.43% and 16.5 Moz of gold at an average grade of 0.23 g/t. Average annual production over the first ten years of operations is expected to be 250 kt copper and 400 koz gold, or 330 kt Copper Equivalent Production, with a mine life of approximately 25 years and first quartile operating costs. The project is located in a region identified by the Russian Government as strategically important for economic development and will benefit from the construction of state-funded power and transport infrastructure and the provision of tax incentives. The estimated capital budget for construction is $5.5 billion and the project is currently at feasibility study stage. The Group expects the project to generate a significant NPV uplift and an attractive IRR at analyst consensus copper prices. The development of Baimskaya will enable the Group to continue its high growth trajectory, adding a large-scale, long-life asset to the Group's portfolio.

KAZ Minerals is listed on the London Stock Exchange and the Kazakhstan Stock Exchange and employs around 15,000 people, principally in Kazakhstan.

AKTOGAY

 
                                                    9m 
                                   9m 2019        2018   Q3 2019    Q2 2019      Q3 2018 
 ===============================  ========  ==========  ========  =========  =========== 
 Ore extraction               kt    39,099      30,716    14,883     13,199       11,591 
=========================  =====  ========  ==========  ========  =========  =========== 
    Oxide                     kt    13,805      12,958     5,612      5,013        4,123 
=========================  =====  ========  ==========  ========  =========  =========== 
    Sulphide                  kt    25,294      17,758     9,271      8,186        7,468 
=========================  =====  ========  ==========  ========  =========  =========== 
 
 Oxide 
================================  ========  ==========  ========  =========  =========== 
 Oxide ore to leach pads      kt    13,805      12,958     5,612      5,013        4,123 
=========================  =====  ========  ==========  ========  =========  =========== 
 Grade                         %      0.33        0.32      0.34       0.34         0.35 
=========================  =====  ========  ==========  ========  =========  =========== 
 Copper cathode               kt      18.5        18.9       6.7        6.1          7.4 
=========================  =====  ========  ==========  ========  =========  =========== 
 
 Sulphide 
================================  ========  ==========  ========  =========  =========== 
 Sulphide ore processed       kt    18,852      15,254     6,119      6,293        5,669 
=========================  =====  ========  ==========  ========  =========  =========== 
 Average grade processed       %      0.58        0.61      0.60       0.59         0.58 
=========================  =====  ========  ==========  ========  =========  =========== 
 Recovery rate                 %      88.3        86.6      87.4       88.8         86.9 
=========================  =====  ========  ==========  ========  =========  =========== 
 Copper in concentrate        kt      97.2        80.1      32.0       32.8         28.8 
=========================  =====  ========  ==========  ========  =========  =========== 
 Copper production(1)         kt      92.9        76.5      30.6       31.3         27.5 
=========================  =====  ========  ==========  ========  =========  =========== 
 
 Total copper production      kt     111.4        95.4      37.3       37.4         34.9 
=========================  =====  ========  ==========  ========  =========  =========== 
 
 Gold production(1, 2)       koz       2.4         0.3       0.7        0.8            - 
=========================  =====  ========  ==========  ========  =========  =========== 
 Silver production(1)        koz       416         359       128        145          144 
=========================  =====  ========  ==========  ========  =========  =========== 
 

(1) Payable metal in concentrate.

(2) Minimal volume recovered from Aktogay material.

Ore extraction at Aktogay increased by 13% to 14,883 kt (Q2 2019: 13,199 kt). Sulphide ore extraction of 9,271 kt (Q2 2019: 8,186 kt) was 13% higher than the previous quarter and exceeded sulphide processing volumes of 6,119 kt (Q2 2019: 6,293 kt), as additional low grade ore was extracted and stockpiled in preparation for the Aktogay expansion project. Oxide ore extraction also increased by 12% to 5,612 kt (Q2 2019: 5,013 kt) ahead of the winter period. Total ore extraction in the first nine months of 2019 was 39,099 kt, representing an increase of 27% compared to the prior year comparative period (9m 2018: 30,716 kt), mainly driven by the increased mining of sulphide ore.

Sulphide ore processing volumes of 6,119 kt were 3% below the previous quarter (Q2 2019: 6,293 kt), whilst processing volumes in the first nine months of 2019 were 24% higher than the prior year comparative period (9m 2018: 15,254 kt) as the sulphide concentrator has operated at its full design capacity during 2019.

Copper production from sulphide ore of 30.6 kt was 2% lower than the previous quarter (Q2 2019: 31.3 kt) due to reduced processing volumes partially offset by a higher average copper grade of 0.60% (Q2 2019: 0.59%). Copper production from sulphide in the first nine months of 2019 was 92.9 kt, representing a 21% increase on the prior year comparative period when the sulphide plant was still ramping up to design capacity (9m 2018: 76.5 kt).

Copper cathode production from oxide ore increased to 6.7 kt in the quarter (Q2 2019: 6.1 kt) and remains on track to achieve the full year guidance of approximately 25 kt. Copper cathode production of 18.5 kt over the first nine months of 2019 was broadly in line with the prior year comparative period (9m 2018: 18.9 kt).

Total copper production of 37.3 kt was in line with the previous quarter (Q2 2019: 37.4 kt) as higher oxide output offset lower sulphide production. In Q4 2019, copper production is expected to be less than Q3 2019 due to seasonally reduced oxide output, lower grades and scheduled maintenance at the sulphide plant in December. After a good third quarter, copper production at Aktogay is now expected to be at the upper end of the full year guidance range of 130-140 kt.

BOZSHAKOL

 
                                                       9m 
                                        9m 2019      2018   Q3 2019   Q2 2019    Q3 2018 
 ====================================  ========  ========  ========  ========  ========= 
 Ore extraction                    kt    26,634    23,238     9,132     8,608      7,732 
==============================  =====  ========  ========  ========  ========  ========= 
    Sulphide                       kt    17,942    17,676     6,496     5,613      6,406 
==============================  =====  ========  ========  ========  ========  ========= 
    Clay                           kt     8,692     5,562     2,636     2,995      1,326 
==============================  =====  ========  ========  ========  ========  ========= 
 
 Ore processed                     kt    21,626    20,983     8,378     6,438      7,553 
==============================  =====  ========  ========  ========  ========  ========= 
 
 Copper 
=====================================  ========  ========  ========  ========  ========= 
 Average copper grade 
  processed                         %      0.47      0.48      0.50      0.46       0.46 
==============================  =====  ========  ========  ========  ========  ========= 
 Copper recovery rate               %      81.8      78.2      80.4      82.6       75.9 
==============================  =====  ========  ========  ========  ========  ========= 
 Copper in concentrate             kt      82.9      78.6      33.6      24.3       26.5 
==============================  =====  ========  ========  ========  ========  ========= 
 Copper production(1)              kt      79.2      75.0      32.1      23.3       25.2 
==============================  =====  ========  ========  ========  ========  ========= 
 
 Gold 
=====================================  ========  ========  ========  ========  ========= 
 Average gold grade processed     g/t      0.26      0.26      0.28      0.25       0.25 
==============================  =====  ========  ========  ========  ========  ========= 
 Gold recovery rate                 %      60.4      57.7      61.2      60.6       54.3 
==============================  =====  ========  ========  ========  ========  ========= 
 Gold in concentrate              koz     110.2     100.2      46.5      31.6       33.5 
==============================  =====  ========  ========  ========  ========  ========= 
 Gold production(1)               koz     103.0      93.7      43.4      29.6       31.4 
==============================  =====  ========  ========  ========  ========  ========= 
 
 Silver production(1)             koz       567       494       233       165        154 
==============================  =====  ========  ========  ========  ========  ========= 
 

(1) Payable metal in concentrate.

Ore extraction at Bozshakol increased by 6% to 9,132 kt (Q2 2019: 8,608 kt) mainly due to increased mining of sulphide ore to feed the main concentrator, which processed a record 6,791 kt of ore during the period (Q2 2019: 5,647 kt). Ore extraction in the first nine months of 2019 increased to 26,634 kt (9m 2018: 23,238 kt) as additional clay material was mined to access higher grade sulphide ore areas.

Ore processed increased by 30% to 8,378 kt (Q2 2019: 6,438 kt) following the completion of upgrade works to the clay plant during the second quarter of 2019 and the absence of any major scheduled maintenance at the sulphide plant. The average copper recovery rate reduced slightly to 80.4% (Q2 2019: 82.6%) reflecting the increased contribution from the clay plant where recovery rates are lower than in the main concentrator. The average copper grade processed increased to 0.50%, in line with the mine plan.

In the first nine months of 2019, ore processing volumes increased by 3% to 21,626 kt (9m 2018: 20,983 kt) and the average copper recovery rate improved to 81.8% (9m 2018: 78.2%), more than offsetting the lower average copper grade of 0.47% (9m 2018: 0.48%).

Copper production benefited from a significant increase in ore throughput and higher grades in Q3, as expected, rising by 38% to a record level of 32.1 kt (Q2 2019: 23.3 kt). Copper production for the first nine months of 2019 was 79.2 kt (9m 2018: 75.0 kt), driven by higher ore throughput and an improved average recovery rate. Whilst throughput is expected to be lower in Q4 2019 due to scheduled maintenance, following the performance in Q3 Bozshakol remains on track to achieve its full year copper production guidance range of 105-115 kt in 2019.

Gold production in Q3 increased to 43.4 koz (Q2 2019: 29.6 koz) in line with the rise in copper production, supported by a higher gold grade of 0.28 g/t (Q2 2019: 0.25 g/t). Gold production at Bozshakol for the first nine months of 2019 increased to 103.0 koz (9m 2018: 93.7 koz) and is on track to achieve the upper end of the full year guidance range of 130-140 koz.

Silver production was 233 koz in Q3 (Q2 2019: 165 koz) and 567 koz in the first nine months of 2019 (9m 2018: 494 koz) and is on track to achieve full year guidance of approximately 700 koz.

EAST REGION & BOZYMCHAK

 
                                        9m 2019      9m        Q3 2019       Q2    Q3 2018 
                                                   2018                    2019 
==============================  =====  ========  ======       ========  =======  ========= 
 Ore extraction                    kt     2,921   2,929            979      995        975 
==============================  =====  ========  ======       ========  =======  ========= 
 
 Ore processed                     kt     2,775   3,048            982    1,168      1,162 
==============================  =====  ========  ======       ========  =======  ========= 
 
 Copper 
=====================================  ========  ======       ========  =======  ========= 
 Average grade processed            %      1.69    1.80           1.62     1.68       1.73 
==============================  =====  ========  ======       ========  =======  ========= 
    Orlovsky concentrator           %      2.96    3.20           2.64     3.17       3.18 
==============================  =====  ========  ======       ========  =======  ========= 
    Nikolayevsky concentrator       %      1.57    1.51           1.64     1.52       1.50 
==============================  =====  ========  ======       ========  =======  ========= 
    Belousovsky concentrator        %      1.36    1.45           1.46     1.31       1.36 
==============================  =====  ========  ======       ========  =======  ========= 
    Bozymchak concentrator          %      0.83    0.86           0.83     0.83       0.87 
==============================  =====  ========  ======       ========  =======  ========= 
 Average recovery rate              %      90.2    89.6           89.6     91.0       90.5 
==============================  =====  ========  ======       ========  =======  ========= 
    East Region                     %      90.7    89.7           89.8     91.5       90.9 
==============================  =====  ========  ======       ========  =======  ========= 
    Bozymchak                       %      87.5    88.3           88.4     87.5       87.0 
==============================  =====  ========  ======       ========  =======  ========= 
 Copper in concentrate             kt      42.3    49.1           14.3     18.0       18.1 
==============================  =====  ========  ======       ========  =======  ========= 
    Orlovsky concentrator          kt      19.2    23.5            5.3      7.1        7.5 
==============================  =====  ========  ======       ========  =======  ========= 
    Nikolayevsky concentrator      kt      12.2    15.0            4.9      7.3        7.3 
==============================  =====  ========  ======       ========  =======  ========= 
    Belousovsky concentrator       kt       5.3     4.8            2.2      1.7        1.4 
==============================  =====  ========  ======       ========  =======  ========= 
    Bozymchak concentrator         kt       5.6     5.8            1.9      1.9        1.9 
==============================  =====  ========  ======       ========  =======  ========= 
 Copper production(1)              kt      39.9    46.4           13.5     16.9       17.1 
==============================  =====  ========  ======       ========  =======  ========= 
    East Region                    kt      34.6    40.9           11.7     15.1       15.3 
==============================  =====  ========  ======       ========  =======  ========= 
    Bozymchak                      kt       5.3     5.5            1.8      1.8        1.8 
==============================  =====  ========  ======       ========  =======  ========= 
 
 Gold production(1)               koz      40.8    41.0           14.4     13.9       13.8 
==============================  =====  ========  ======       ========  =======  ========= 
 Silver production(1)             koz     1,513   1,725            583      616        643 
==============================  =====  ========  ======       ========  =======  ========= 
 Zinc in concentrate               kt      28.9    38.3           10.5     12.2       13.4 
==============================  =====  ========  ======       ========  =======  ========= 
 

(1) Payable metal in concentrate.

Ore extraction reduced by 2% in Q3 to 979 kt (Q2 2019: 995 kt) due to lower mined volumes at Orlovsky. Ore processing volumes also reduced to 982 kt from 1,168 kt in the previous quarter due to lower throughput at the Nikolayevsky concentrator. Ore extraction volumes of 2,921 kt in the first nine months of 2019 were in line with the prior year comparative period (9m 2018: 2,929 kt) whilst ore processing volumes were 9% lower at 2,775 kt (9m 2018: 3,048 kt) due to the intentional idling of the Nikolayevsky concentrator over the first quarter of 2019.

The average copper grade processed reduced slightly to 1.62% in Q3 from 1.68% in the previous quarter due to the mining of lower grade zones at Orlovsky, whilst the average recovery rate at the East Region concentrators remained high at 89.8% (Q2 2019: 91.5%). Copper production reduced to 13.5 kt in Q3 (Q2 2019: 16.9 kt), mainly due to lower processing volumes and grades.

In the first nine months of 2019, lower processing volumes and a reduction in average copper grades to 1.69% (9m 2018: 1.80%) led to a 14% decrease in copper production to 39.9 kt (9m 2018: 46.4 kt), in line with management expectations. The East Region and Bozymchak remains on track to achieve the 2019 full year copper production guidance of around 55 kt.

Gold production of 14.4 koz increased by 4% versus the previous quarter (Q2 2019: 13.9 koz) as higher grades and recovery rates more than offset the reduction in processing volumes. Gold production in the first nine months of 2019 was 40.8 koz (9m 2018: 41.0 koz) and the East Region and Bozymchak mines are now forecast to exceed the upper end of the full year production guidance range of 40-45 koz.

Silver production was 583 koz in Q3 (Q2 2019: 616 koz) and 1,513 koz in the first nine months of 2019 (9m 2018: 1,725 koz) and is on track to exceed full year guidance of around 1,800 koz.

Zinc in concentrate production of 10.5 kt in Q3 was 14% lower than the previous quarter (Q2 2019: 12.2 kt) as a decrease in ore processing volumes was offset by an increase in average zinc grade processed to 2.22% (Q2 2019: 1.96%). Zinc in concentrate output of 28.9 kt in the first nine months of 2019 (9m 2018: 38.3 kt) was 25% lower than the prior year comparative period due to lower grades. The East Region remains on track to achieve full year zinc in concentrate production guidance of 40-45 kt.

To improve operational efficiency in the East Region, the Belousovsky concentrator will cease processing ore from 1 November 2019. Mine output will be unaffected and ore from the Irtyshsky mine will be processed using spare capacity at the Nikolayevsky concentrator.

FINANCIAL UPDATE

Sales volumes

The following table sets out the sales volumes of the Group's major products compared to production for the first nine months of 2019.

 
                                          9m           9m      9m           9m 
                                        2019         2019    2018         2018 
                                       Sales   Production   Sales   Production 
 ===================================  ======  ===========  ======  =========== 
 Copper                           kt   232.6        230.5   218.7        216.8 
=============================  =====  ======  ===========  ======  =========== 
    Copper cathode(1)             kt   100.9        101.4    76.5         78.1 
=============================  =====  ======  ===========  ======  =========== 
    Copper in concentrate(2)      kt   131.7        129.1   142.2        138.7 
=============================  =====  ======  ===========  ======  =========== 
 Gold(3)                         koz   168.7        146.2   123.6        135.0 
=============================  =====  ======  ===========  ======  =========== 
 Silver(3)                       koz   2,478        2,496   2,767        2,578 
=============================  =====  ======  ===========  ======  =========== 
 Zinc                             kt    28.8         28.9    39.5         38.3 
=============================  =====  ======  ===========  ======  =========== 
 

(1) Copper cathode from Aktogay oxide ore and toll processed metal.

(2) Payable metal in concentrate, excluding material sent for toll processing.

(3) Payable metal in concentrate and toll processed metal.

Total copper sales volumes of 232.6 kt were in line with production. Copper cathode sales increased by 32% to 100.9 kt (9m 2018: 76.5 kt) whilst copper in concentrate sales reduced by 7% to 131.7 kt (9m 2018: 142.2 kt). The higher proportion of cathode sales was mainly due to increased toll processing of material from Aktogay at the Balkhash smelter in Kazakhstan, to take advantage of available capacity at favourable commercial terms.

Gold sales volumes of 168.7 koz were significantly above production as sales include 25.6 koz of Bozshakol gold bar inventory accumulated at the end of 2018, as reported in the 2019 half year results.

Provisionally priced copper in concentrate

At 30 September 2019, the Group's provisionally priced copper cathode volumes were 5 kt at an average provisional price of $5,749/t and provisionally priced copper in concentrate volumes were 30 kt at an average provisional price of $5,215/t. The copper in concentrate provisional prices are below LME quoted prices due to the deduction of treatment and refining charges. For further details on the Group's provisional pricing arrangements please refer to Note 4(b) of the 2018 Annual Report and Accounts.

Commodity hedging

The Group's policy is generally not to hedge commodity prices. At 30 September 2019, there were no commodity price hedges in place.

Net debt

Net debt increased to $2,635 million at 30 September 2019 from $2,560 million at 30 June 2019, mainly due to capital expenditure on the Aktogay expansion project. There were also semi-annual interest payments on the Group's CDB debt facilities and monthly interest payments on the PXF totalling $95 million. MET and royalty payments in the third quarter were $55 million. An additional $140 million was drawn in the quarter under the new $600 million DBK facility, with a further $340 million to be drawn to fund capital spending on the Aktogay expansion project in 2019 and 2020. Total cash and cash equivalents at 30 September 2019 amounted to $601 million with gross debt of $3,236 million.

APPIX - METAL PRODUCTION

 
                                9m 2019      9m        Q3 2019      Q2   Q3 2018 
                                           2018                   2019 
======================  =====  ========  ======       ========  ======  ======== 
 Copper production(1)      kt     230.5   216.8           82.9    77.6      77.2 
======================  =====  ========  ======       ========  ======  ======== 
     Aktogay               kt     111.4    95.4           37.3    37.4      34.9 
======================  =====  ========  ======       ========  ======  ======== 
     Bozshakol             kt      79.2    75.0           32.1    23.3      25.2 
======================  =====  ========  ======       ========  ======  ======== 
     East Region           kt      34.6    40.9           11.7    15.1      15.3 
======================  =====  ========  ======       ========  ======  ======== 
     Bozymchak             kt       5.3     5.5            1.8     1.8       1.8 
======================  =====  ========  ======       ========  ======  ======== 
 Gold production(2)       koz     146.2   135.0           58.5    44.3      45.2 
======================  =====  ========  ======       ========  ======  ======== 
     Aktogay              koz       2.4     0.3            0.7     0.8         - 
======================  =====  ========  ======       ========  ======  ======== 
     Bozshakol            koz     103.0    93.7           43.4    29.6      31.4 
======================  =====  ========  ======       ========  ======  ======== 
     East Region          koz       9.4    10.9            3.8     3.7       3.8 
======================  =====  ========  ======       ========  ======  ======== 
     Bozymchak            koz      31.4    30.1           10.6    10.2      10.0 
======================  =====  ========  ======       ========  ======  ======== 
 Silver production(2)     koz     2,496   2,578            944     926       941 
======================  =====  ========  ======       ========  ======  ======== 
     Aktogay              koz       416     359            128     145       144 
======================  =====  ========  ======       ========  ======  ======== 
     Bozshakol            koz       567     494            233     165       154 
======================  =====  ========  ======       ========  ======  ======== 
     East Region          koz     1,310   1,545            514     548       582 
======================  =====  ========  ======       ========  ======  ======== 
     Bozymchak            koz       203     180             69      68        61 
======================  =====  ========  ======       ========  ======  ======== 
 Zinc in concentrate       kt      28.9    38.3           10.5    12.2      13.4 
======================  =====  ========  ======       ========  ======  ======== 
     East Region           kt      28.9    38.3           10.5    12.2      13.4 
======================  =====  ========  ======       ========  ======  ======== 
 

(1) Payable metal in concentrate and copper cathode from Aktogay oxide ore.

(2) Payable metal in concentrate.

TOLL PROCESSING & FINISHED METALS

 
                                            9m 2019          9m        Q3 2019      Q2     Q3 2018 
                                                           2018                   2019 
==================================  =====  ========  ==========       ========  ======  ========== 
 Copper cathodes                       kt     101.4        78.1           38.7    32.7        26.5 
==================================  =====  ========  ==========       ========  ======  ========== 
     Aktogay sulphide (toll 
      processed)                       kt      32.3         3.4           12.0    10.6         0.1 
==================================  =====  ========  ==========       ========  ======  ========== 
     Aktogay oxide                     kt      18.5        18.9            6.7     6.1         7.4 
==================================  =====  ========  ==========       ========  ======  ========== 
     Bozshakol (toll processed)        kt       8.3         8.7            3.6     1.8         3.1 
==================================  =====  ========  ==========       ========  ======  ========== 
     East Region (toll processed)      kt      37.1        41.5           15.0    12.1        14.1 
==================================  =====  ========  ==========       ========  ======  ========== 
     Bozymchak (toll processed)        kt       5.2         5.6            1.4     2.1         1.8 
==================================  =====  ========  ==========       ========  ======  ========== 
 
 Gold bar produced (toll 
  processed)                          koz      52.9        50.4           19.1    16.7        17.6 
==================================  =====  ========  ==========       ========  ======  ========== 
 Silver bar produced (toll 
  processed)                          koz     1,720       1,849            675     418         482 
==================================  =====  ========  ==========       ========  ======  ========== 
 

APPIX - EAST REGION & BOZYMCHAK

 
                                         9m 2019          9m        Q3 2019      Q2     Q3 2018 
                                                        2018                   2019 
==============================  ======  ========  ==========       ========  ======  ========== 
 Ore extraction                     kt     2,921       2,929            979     995         975 
==============================  ======  ========  ==========       ========  ======  ========== 
    Orlovsky                        kt       720         823            230     244         264 
==============================  ======  ========  ==========       ========  ======  ========== 
    Artemyevsky                     kt       936         937            325     326         329 
==============================  ======  ========  ==========       ========  ======  ========== 
    Irtyshsky                       kt       449         472            149     149         152 
==============================  ======  ========  ==========       ========  ======  ========== 
    Bozymchak                       kt       816         697            275     276         230 
==============================  ======  ========  ==========       ========  ======  ========== 
 Ore processed                      kt     2,775       3,048            982   1,168       1,162 
==============================  ======  ========  ==========       ========  ======  ========== 
    Orlovsky concentrator           kt       719         822            229     244         263 
==============================  ======  ========  ==========       ========  ======  ========== 
    Nikolayevsky concentrator       kt       833       1,085            319     514         522 
==============================  ======  ========  ==========       ========  ======  ========== 
    Belousovsky concentrator        kt       448         380            172     150         121 
==============================  ======  ========  ==========       ========  ======  ========== 
    Bozymchak concentrator          kt       775         761            262     260         256 
==============================  ======  ========  ==========       ========  ======  ========== 
 
 Gold 
======================================  ========  ==========       ========  ======  ========== 
 Average grade processed           g/t      0.73        0.73           0.72    0.60        0.63 
==============================  ======  ========  ==========       ========  ======  ========== 
    East Region                    g/t      0.39        0.46           0.40    0.33        0.37 
==============================  ======  ========  ==========       ========  ======  ========== 
    Bozymchak                      g/t      1.59        1.54           1.60    1.55        1.53 
==============================  ======  ========  ==========       ========  ======  ========== 
 Average recovery rate               %      67.0        61.2           67.3    65.7        62.5 
==============================  ======  ========  ==========       ========  ======  ========== 
    East Region                      %      39.4        34.3           43.3    41.2        37.2 
==============================  ======  ========  ==========       ========  ======  ========== 
    Bozymchak                        %      84.5        85.2           83.7    83.9        84.2 
==============================  ======  ========  ==========       ========  ======  ========== 
 Gold in concentrate               koz      43.4        43.5           15.3    14.8        14.6 
==============================  ======  ========  ==========       ========  ======  ========== 
    East Region                    koz       9.9        11.5            4.0     3.9         4.0 
==============================  ======  ========  ==========       ========  ======  ========== 
    Bozymchak                      koz      33.5        32.0           11.3    10.9        10.6 
==============================  ======  ========  ==========       ========  ======  ========== 
 Gold production(1)                koz      40.8        41.0           14.4    13.9        13.8 
==============================  ======  ========  ==========       ========  ======  ========== 
    East Region                    koz       9.4        10.9            3.8     3.7         3.8 
==============================  ======  ========  ==========       ========  ======  ========== 
    Bozymchak                      koz      31.4        30.1           10.6    10.2        10.0 
==============================  ======  ========  ==========       ========  ======  ========== 
 
 Silver 
======================================  ========  ==========       ========  ======  ========== 
 Average grade processed           g/t      30.1        33.2           31.2    30.2        30.5 
==============================  ======  ========  ==========       ========  ======  ========== 
    East Region                    g/t      37.2        40.8           38.3    35.5        36.0 
==============================  ======  ========  ==========       ========  ======  ========== 
    Bozymchak                      g/t      11.7        10.5           11.7    11.7        10.8 
==============================  ======  ========  ==========       ========  ======  ========== 
 Average recovery rate               %      62.0        58.2           65.1    59.6        62.2 
==============================  ======  ========  ==========       ========  ======  ========== 
    East Region                      %      60.2        56.6           63.7    58.1        61.0 
==============================  ======  ========  ==========       ========  ======  ========== 
    Bozymchak                        %      76.4        77.3           77.5    75.7        75.5 
==============================  ======  ========  ==========       ========  ======  ========== 
 Silver in concentrate             koz     1,663       1,896            641     677         707 
==============================  ======  ========  ==========       ========  ======  ========== 
    East Region                    koz     1,440       1,698            565     603         640 
==============================  ======  ========  ==========       ========  ======  ========== 
    Bozymchak                      koz       223         198             76      74          67 
==============================  ======  ========  ==========       ========  ======  ========== 
 Silver production(1)              koz     1,513       1,725            583     616         643 
==============================  ======  ========  ==========       ========  ======  ========== 
    East Region                    koz     1,310       1,545            514     548         582 
==============================  ======  ========  ==========       ========  ======  ========== 
    Bozymchak                      koz       203         180             69      68          61 
==============================  ======  ========  ==========       ========  ======  ========== 
 
 Zinc 
======================================  ========  ==========       ========  ======  ========== 
 Average grade processed             %      2.15        2.45           2.22    1.96        2.18 
==============================  ======  ========  ==========       ========  ======  ========== 
    Orlovsky concentrator            %      2.13        3.60           2.33    1.84        3.26 
==============================  ======  ========  ==========       ========  ======  ========== 
    Nikolayevsky concentrator        %      1.58        1.15           1.41    1.69        1.38 
==============================  ======  ========  ==========       ========  ======  ========== 
    Belousovsky concentrator         %      3.23        3.69           3.56    3.11        3.28 
==============================  ======  ========  ==========       ========  ======  ========== 
 Average recovery rate               %      67.3        68.3           65.8    68.7        67.9 
==============================  ======  ========  ==========       ========  ======  ========== 
    Orlovsky concentrator            %      59.6        67.1           57.1    56.3        65.6 
==============================  ======  ========  ==========       ========  ======  ========== 
    Nikolayevsky concentrator        %      72.4        65.4           71.0    73.0        69.6 
==============================  ======  ========  ==========       ========  ======  ========== 
    Belousovsky concentrator         %      70.8        73.5           69.5    72.8        70.1 
==============================  ======  ========  ==========       ========  ======  ========== 
 Zinc in concentrate                kt      28.9        38.3           10.5    12.2        13.4 
==============================  ======  ========  ==========       ========  ======  ========== 
    Orlovsky concentrator           kt       9.1        19.9            3.1     2.5         5.7 
==============================  ======  ========  ==========       ========  ======  ========== 
    Nikolayevsky concentrator       kt       9.6         8.1            3.2     6.4         4.9 
==============================  ======  ========  ==========       ========  ======  ========== 
    Belousovsky concentrator        kt      10.2        10.3            4.2     3.4         2.8 
==============================  ======  ========  ==========       ========  ======  ========== 
 

(1) Payable metal in concentrate.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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(END) Dow Jones Newswires

October 24, 2019 02:00 ET (06:00 GMT)

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