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Kaz Minerals shares 1H18 results

Published by , Assistant Editor
Global Mining Review,

Kazakhstan-focused copper miner Kaz Minerals has released its half yearly report for the period ended 30 June 2018.

Financial highlights

  • Kaz Minerals achieved revenues of US$1098 million (1H17: Gross Revenues of US$837 million, revenues of US$721 million).
  • The company experienced an increase in revenues supported by 22% copper sales volume growth and a 20% higher average LME copper price.
  • EBITDA1 of US$690 million representing a 63% margin (1H17: Gross EBITDA of US$505 million, EBITDA US$429 million).
  • The company's operating profit stood at US$464 million (1H17: US$291 million).
  • The Group gross cash cost of 145 USc/lb was in line with 1H17 (144 USc/lb).
  • Industry leading first quartile net cash cost of 82 USc/lb (1H17: 64 USc/lb).

Operational highlights

  • Its Aktogay sulfide concentrator achieved design throughput capacity.
  • Copper production increased by 18% to 140 kt (1H17: 118 kt).

Financial position

  • Net debt of US$2052 million at 30 June 2018, US$250 million deferred from 2016 paid to Aktogay contractor in 1H18 and commenced investment in Aktogay expansion.
  • Gearing level reduced, net debt to EBITDA ratio of 1.4x.
  • Borrowings of US$3705 million and cash and cash equivalents of US$1653 million.
  • An interim dividend of 6.0 US cents per share was declared, marking the successful delivery of the Bozshakol and Aktogay projects.

Growth projects

On 2 August 2018, the company announced the acquisition of the Baimskaya copper project in Russia, a globally significant copper deposit. This transaction is expected to be completed in first half of 2019, subject to regulatory approvals.

Its Aktogay expansion project, which was launched in December 2017 is progressing well with engineering, contracting and earthworks.


  • Full year copper production guidance was maintained at 270 - 300 kt and byproduct targets remained unchanged.
  • Cost guidance was unchanged, as strong unit cost performance is expected to continue in second half.
  • The medium term copper market outlook remains positive, as supply from existing mines declines and demand from both traditional and new sectors continues to grow.

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