KAZ Minerals plc announced interim management statement results for the first quarter ended March 31, 2016. For the quarter, the company ore extraction of 10,605 kt was 2,565 kt or 32% above the volume mined in fourth quarter 2015, mainly due to increased mining of oxide ore at Aktogay for placement onto the leach pads. Total ore output at Bozshakol reduced by 17% compared to fourth quarter 2015 when higher volumes of clay ore were stripped to access sulphide ore to supply the concentrator. The East Region and Bozymchak increased ore output by 144 kt or 13% to 1,236 kt compared to fourth quarter 2015 to support higher throughput at the optimised Bozymchak concentrator in first quarter 2016. Total ore extraction was more than ten times the volume mined in first quarter 2015 due to the commencement of large scale open-pit mining at Aktogay and Bozshakol. Copper in concentrate output of 22.4 kt includes the first contribution from Bozshakol of 1.1 kt following initial production in February 2016. Copper cathode equivalent production in first quarter 2016 benefitted from 1.5 kt of output from Aktogay oxide. Output of 19.7 kt from the East Region and Bozymchak and a small contribution from the first sale of Bozshakol copper in concentrate resulted in Group production of 21.5 kt. East Region and Bozymchak production reduced by 2.6 kt or 12% compared to fourth quarter 2015, as expected, due to lower copper grades, but remains on track to achieve 2016 guidance of 70-75 kt. Zinc in concentrate production was 1.1 kt or 5% below the previous quarter and 21% below first quarter 2015 as mining continued in areas with lower zinc grades at the Artemyevsky and Orlovsky mines. The first quarter output of 19.9 kt represents good progress towards the 2016 zinc in concentrate production target of 70-75 kt. Gold bar equivalent production of 13 koz included an increased contribution from the newly optimised Bozymchak concentrator and benefitted from the sale in January of 5.2 koz of gold in concentrate carried forward from 2015, partly offset by a build-up of work in progress at the Balkhash smelter. Silver granule equivalent production of 751 koz was 10% higher than the 686 koz produced in fourth quarter 2015 mainly due to a release of work in progress at the Balkhash smelter. Underlying silver in concentrate output was 776 koz, a reduction of 25 koz or 3% compared to fourth quarter 2015 and 88 koz or 10% lower than in first quarter 2015. Net debt increased to $2,425 million at 31 March 2016 from $2,253 million at 31 December 2015 as the Group continued to invest in the development of the Bozshakol and Aktogay projects and as interest payments of $79 million were made under the Group debt facilities. For the quarter, the company reported copper cathode sales totalled 22.9 kt, 2.6 kt above cathode production of 20.3 kt reflecting a reduction in goods in transit. Copper cathode sales were 5.1 kt above first quarter 2015 as there was a build-up of finished goods inventory in the prior year period and due to higher cathode production volumes in 2016. In addition to the cathode sales, there was also a small volume of copper in concentrate sold, 1.2 kt, which comprised a one-off sale of Bozymchak material built-up in fourth quarter 2015 and a test sale of concentrate from initial Bozshakol production. Regular sales shipments from Bozshakol are expected during second quarter 2016. Sales of zinc in concentrate of 18.5 kt in first quarter 2015 were 1.4 kt below production due to a build-up of finished goods inventory. Sales of zinc in concentrate were 6 kt below first quarter 2015 reflecting lower production. Gold bar sales of 8 koz were in line with the East Region and Bozymchak production volumes. In addition to the gold bar sales, the Bozymchak concentrate sold contained 5.2 koz of gold and the trial sale of Bozshakol material shipped to China contained 0.4 koz of gold. Silver granule sales totalled 562 koz, 157 koz below production as finished goods inventory increased.

For 2016, the company expects copper production target of 130-155 kt, delivering industry leading production growth at highly competitive cash costs.