Kazakhmys PLC Production Report for the Third Quarter Ended 30 September 2011 and Interim Management Statement
l Copper cathode production from own concentrate of 227 kt
§ In line with annual target of 300 kt
§ Output and grades likely to remain at current levels for remainder of 2011
l By-product output on track to meet full year targets in all metals
§ Zinc in concentrate production of 114 kt
§ Gold and silver production of 111 koz and 9.9 moz respectively
§ Precious metal sales disrupted by Government restriction on exports during the quarter
l Kazakhmys Power
§ Continued strong performance
§ 20% increase in Ekibastuz GRES-1 power generation and average realised tariff
l Maintaining strong financial position
§ Average realised copper price of $9,261 per tonne for first 9 months of 2011
§ Balance sheet in net funds position, $36 million, for first time since early 2008
§ Buy-back underway with 1,658,976 shares purchased to date at a cost of $23 million
Oleg Novachuk, Chief Executive Officer, said: "Our mining and power operations continue to perform in line with expectations and we anticipate once again meeting all of our production targets. In spite of the considerable volatility in financial markets, we have seen consistent demand for our copper. Continuing demand for copper is reflected in the current negotiations for our 2012 off-take agreements, which as in previous years should be completed in the next few months. Our growth projects and efficiency programmes also continue to show good progress and we approach 2012 with optimism."
