KAZAKHMYS PLC (United Kingdom) announces Y2009 operation results

04.03.10 17:06
/KASE, March 4, 10/ - KAZAKHMYS PLC (London), listing on Kazakhstan Stock Exchange (KASE), issued a press release: Quotation begins The Kazakhmys Group (Kazakhmys PLC) released its operation and financial results for Y2009. The statement excludes the contribution from ENRC PLC, in which Kazakhmys has a 26% shareholding. A further announcement including this contribution will be released on 30 March 2010. EBITDA from managed businesses reached USD1,211 m, reducing 26 % against the previous year. The reduction reflected lowed copper prices, however, was partially offset by lower costs and improved efficiencies. Higher by-product prices in H2 2009 allowed for keeping copper production costs at low levels. Net debt reduced from USD1,628 m as on December 31, 2008 to USD689 m as on December 31, 2009. Operation revenue allowed for reduction of net debt. The Group received USD681 m from sale of a-50 % share in Ekibastuz GRES-1. The Group outperformed its metal and mining production plan. In particular, the group produced 320 th tones of copper cathode equivalent as against the planned 300 th tones. Kazakhmys Copper produced 9 % more gold and zinc as against the previous year, with silver output at the same level. At the end of 2009 the group came to an agreement to raise USD2.7 bn for financing of Bozshakol and Bozymchak mining projects, and other projects. The Bozshakol project is going to complete feasibility study in 2010. The Bozymshak project is in development with the first production in the end of 2010. The Group is considering financing of Aktogay project. In 2009 Kazakhmys was noted as the Company of the Year among "blue chips" of FTSE-100, demonstrating a-475 % growth on recovering copper prices up to 1328 pences as on December 31, 2009. The Group successfully faced the challenges and decided to resume pay dividend in the amount of USD48 m (USD9.0 cents a share). In 2009 Kazakhmys took steps to increase Kazakhstan content in procurement of goods and services. The Group jointly with the Kazakhstan Ministry of Industry and Trade and Karaganda Akimat held the First forum of Kazakhstan producers and take an active part in the second forum, which resulted in signing protocols and contacts with Kazakhstan-based businesses. Besides, amidst the credit market deficit the Group supported a number of domestic companies paying for future supplies in advance. Kazakhmys is socially responsible. The Group kept funds and remained profitable, which allowed for keeping jobs in the Group, thus protecting employees and the production processes. The Group spent USD88 m for social protection. Kazakhmys is providing 61,000 jobs in Kazakhstan, and is a largest taxpayer financing over 150 social-oriented projects. Oleg Novachuk, Chief Executive of Kazakhmys PLC, said: "Against the challenging backdrop for 2009, the Group produced an outstanding performance, and ended the year in a far stronger position than it started. The management team controlled the cost base well, protected cash and enhanced operational efficiency. The completion of the Ekibastuz power joint venture has strengthened our balance sheet and, combined with the recent arrangement of our USD2.7 billion loan facility, we have flexibility and confidence to deliver our growth projects and develop our business. We believe we have many opportunities and we approach 2010 with enthusiasm." Contact: Kazakhmys PLC: John Smelt Corporate Relations Tel: +44 20 7901 7882 Tel:+44 78 7964 2675 Irene Burton Financial Analyst Tel: +44 20 7901 7814 Zulfira Mukhamediarova Senior Manager - Media Relations Tel: +77 27 266 3317 Merlin David Simonson Tel: +44 20 7726 8400 Tom Randell Tel: +44 20 7726 8400 Leonid Fink Tel: +44 20 7726 8400 Ends The full version of the press release in English is available at the KASE website at http://www.kase.kz/files/emitters/GB_KZMS/gbkzms_reliz_040310_eng.pdf [2010-03-04]