Kaz Minerals : Q4 Production Report 2021

KAZ MINERALS LIMITED 6TH FLOOR

CARDINAL PLACE

100 VICTORIA STREET LONDON SW1E 5JL Tel: [phone]

10 F ebruary 2022

KAZ MINERALS GROUP PRODUCTION AND SALES REPORT

FOR TWELVE MONTHS AND THE FOURTH QUARTER ENDED 31 DECEMBER 2021

		12m	12m
		2021	2020
Copper production1	kt	298.7	305.7
Aktogay	kt	138.4	131.2
Bozshakol	kt	107.5	122.0
East Region & Bozymchak	kt	52.8	52.5
Gold production2	koz	166.8	196.3
Silver production2	koz	3,417	3,374
Zinc in concentrate	kt	46.5	49.7
Copper sales3	kt	252.6	300.4
Gold sales4	koz	136.9	204.6
Silver sales4	koz	2,935	3,496
Zinc in concentrate sales	kt	42.9	50.3

Q4	Q3	Q4
2021	2021	2020
74.8	73.6	75.7
36.1	32.4	31.9
25.9	27.7	31.3
12.8	13.5	12.5
40.6	43.3	35.9
904	849	732
12.4	12.3	10.2
53.2	62.4	72.1
38.4	36.0	45.4
719	805	896
9.7	11.1	11.4

• 1. Payable metal in concentrate and copper cathode from Aktogay oxide ore
  2. Payable metal in concentrate
  3. Payable metal in concentrate, toll processed metal and copper cathode from Aktogay oxide ore
  4. Payable metal in concentrate and toll processed metal
• Highlights
• • KAZ Minerals achieved copper production of 299 kt in 2021, exceeding the production target set at the start of the year of 275-295 kt, due to Aktogay and Bozshakol operating above design capacity and an exceptional ramp-up at the Aktogay expansion.
  • The second sulphide concentrator at Aktogay was commissioned in October 2021 and has shipped its first copper concentrate to customers during the fourth quarter. The ramp-up has outperformed expectations, with the new concentrator achieving design capacity throughput for extended periods.
  • Copper production in the fourth quarter increased by 2% to 75 kt (Q3 2021: 74 kt) driven by an increase at Aktogay following the start-up of the second sulphide concentrator, which offset lower output from Bozshakol and East Region & Bozymchak, where grades fell.
  • Full year gold production of 167 koz was consistent with the Group's target of 160-180 koz. KAZ Minerals exceeded its annual targets for the production of both silver and zinc in concentrate.
  • Copper sales of 253 kt in 2021 were 18% below production as the Group experienced congestion on the rail network during the second half of the year, including restrictions at the Kazakhstan-China border associated with enhanced Covid-19 measures. There has subsequently been a significant improvement in transit times with inventory levels reducing in January.
  • At the start of January there was unrest in Kazakhstan. None of the Group's staff were harmed and there was no damage to Group property. There was minimal disruption to the Group's operations, all of which are running at full capacity.

Andrew Southam, Chief Executive Officer, said: "KAZ Minerals' operations continued to perform strongly in the fourth quarter, and supported by the exceptional ramp-up of the second concentrator at Aktogay, the Group met or exceeded its production targets for all metals. We have had a good start to 2022, with the second concentrator at Aktogay set to deliver further growth in the year."

For further information please contact:

KAZ Minerals

Susanna Freeman	Company Secretary, London	Tel: [phone]
Maksut Zhapabayev	Corporate Communications, Almaty	Tel: [phone]

REGISTERED OFFICE

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

NOTES TO EDITORS

KAZ Minerals Limited ("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 Aktogay and Bozshakol open pit copper mines in the East Region and Pavlodar region of Kazakhstan, three underground mines and associated concentrators in the East Region of Kazakhstan and the Bozymchak copper-gold mine in Kyrgyzstan. In 2021, total copper production was 299 kt with by-products of 167 koz of gold, 3,417 koz of silver and 43 kt of zinc in concentrate. The Group acquired the Baimskaya copper project in the Chukotka region of Russia in January 2019, 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 major operations at Aktogay and Bozshakol have delivered industry leading production growth and transformed KAZ Minerals into a company dominated by world class, open pit copper mines. The Aktogay expansion project to double sulphide processing capacity at the mine was officially opened in October 2021, with first shipments to customers dispatched in December 2021.

The Group has completed a Bankable Feasibility Study for the Baimskaya copper project and is progressing financing for the greenfield development, which has an expected capital construction cost of $8.5 billion. The Peschanka deposit within the Baimskaya licence area in Russia has JORC measured, indicated and inferred resources of 9.9 Mt of copper at an average grade of 0.39% and 16.6 Moz of gold at an average grade of 0.21 g/t.

KAZ Minerals employs around 16,000 people across Kazakhstan, Russia and Kyrgyzstan.

AKTOGAY

		12m	12m
		2021	2020
Ore extraction	kt	54,944	41,246
Oxide	kt	20,655	10,458
Sulphide	kt	34,289	30,788
Oxide
Oxide ore to leach pads	kt	20,655	10,577
Grade	%	0.32	0.28
Copper cathode	kt	24.2	21.3
Sulphide
Sulphide ore processed	kt	27,959	24,138
Sulphide 1	kt	25,798	24,138
Sulphide 2	kt	2,161	-
Average grade processed	%	0.50	0.56
Recovery rate	%	84.9	85.0
Copper in concentrate	kt	119.6	115.1
Copper production1	kt	114.2	109.9
Total copper production	kt	138.4	131.2
Gold production1, 2	koz	-	0.6
Silver production1	koz	594	479

Q4	Q3	Q4
2021	2021	2020
14,745	13,579	12,513
3,192	5,677	5,427
11,553	7,902	7,086
3,192	5,677	5,427
0.33	0.32	0.26
5.9	7.6	4.6
8,828	5,989	6,057
6,667	5,989	6,057
2,161	-	-
0.44	0.50	0.56
80.9	86.9	84.6
31.7	25.9	28.6
30.2	24.8	27.3
36.1	32.4	31.9
-	-	-
183	124	121

1. Payable metal in concentrate.
2. Minimal volume recovered from Aktogay material.

Ore extraction at Aktogay in Q4 2021 of 14,745 kt was 9% higher than the previous quarter (Q3 2021: 13,579 kt) as a

reduction in oxide ore mined was offset by a 46% increase in sulphide ore mined to 11,553 kt (Q3 2021: 7,902 kt). Sulphide ore has been stockpiled throughout the year to prepare for the commissioning of the second 25 Mtpa sulphide concentrator ("sulphide 2"), which took place in October 2021.

Sulphide ore processing volumes in Q4 of 8,828 kt increased by 47% from the previous quarter (Q3 2021: 5,989 kt) as ore throughput was limited in Q3 2021 due to maintenance work at the SAG mill and as sulphide 2 launched in Q4 2021, processing 2,161 kt in the period. Copper production from sulphide ore in Q4 of 30.2 kt increased by 21% compared with the previous quarter (Q3 2021: 24.8 kt) with sulphide 2 contributing 4.6 kt of copper. Sulphide 2 is based on the same design as the first sulphide concentrator ("sulphide 1"), and therefore the Aktogay management team has benefited from existing operational knowledge. To date, the ramp-up has exceeded expectations, with the concentrator achieving throughput in excess of the hourly design parameters for extended periods. Production from sulphide 1 of

25.6 kt of copper represented an increase compared with the previous quarter as higher throughput more than offset a reduction in the grade processed at the plant.

Copper cathode production from oxide ore of 5.9 kt in Q4 decreased by 22% compared with the previous quarter (Q3 2021: 7.6 kt) due to seasonal temperature variation.

Total copper production in Q4 2021 of 36.1 kt was 11% higher than the previous quarter (Q3 2021: 32.4 kt) mainly due to the commissioning of sulphide 2 during the quarter.

Silver production in Q4 of 183 koz increased by 48% compared with the previous quarter (Q3 2021: 124 koz) as the site

benefited from a higher silver grade in ore processed. Full year production of 594 koz increased by 24% (FY 2020: 479 koz) also due to higher silver grade.

Ore extraction over the full year increased by 33% to 54,944 kt (FY 2020: 41,246 kt). Oxide ore mined of 20,655 kt was

97% higher than the prior year (FY 2020: 10,458 kt) as oxide material was continually delivered to the heap leach pads during the year, whereas in 2020 oxide ore mining was temporarily suspended as production focused on the re-irrigation of previously extracted material. Sulphide ore extraction of 34,289 kt (FY 2020: 30,788 kt) continued to exceed throughput at the concentrator as stockpiling was performed to prepare for the ramp-up of the second sulphide plant in 2022.

Sulphide ore processed in 2021 was 27,959 kt, with sulphide 1 contributing 25,798 kt, a 7% increase compared with the prior year comparative period (FY 2020: 24,138 kt) as the plant achieved throughput in excess of its 25 Mtpa design capacity as management continue to identify opportunities to improve operational performance. The average grade processed reduced from 0.56% in 2020 to 0.50% in 2021 due to an expected decline in grades processed at sulphide 1 and the Group's decision to process lower grade material at sulphide 2 during its ramp-up phase.

The increase in ore throughput more than offset the reduction in the grade processed and copper production from sulphide ore increased by 4% to 114.2 kt (FY 2020: 109.9 kt). Copper cathode production also increased in 2021 to 24.2 kt from 21.3 kt in 2020 as a greater volume of ore was placed under irrigation.

Overall, total copper production at Aktogay increased by 5% in 2021 to 138.4 kt, a record for the site.

BOZSHAKOL

		12m	12m
		2021	2020
Ore extraction	kt	27,474	32,090
Sulphide	kt	23,577	26,556
Clay	kt	3,897	5,534
Ore processed	kt	32,700	31,618
Copper
Average copper grade processed	%	0.46	0.51
Copper recovery rate	%	74.4	79.7
Copper in concentrate	kt	112.6	127.8
Copper production1	kt	107.5	122.0
Gold
Average gold grade processed	g/t	0.21	0.26
Gold recovery rate	%	53.5	60.3
Gold in concentrate	koz	120.8	162.2
Gold production1	koz	112.9	151.7
Silver production1	koz	732	949

1 Payable metal in concentrate.

Q4	Q3	Q4
2021	2021	2020
5,475	5,581	9,833
4,743	5,383	6,824
732	198	3,009
8,771	8,125	7,867
0.43	0.49	0.52
71.5	72.6	79.6
27.1	29.0	32.8
25.9	27.7	31.3
0.21	0.22	0.24
49.8	55.0	56.0
30.1	32.2	33.5
28.1	30.1	31.4
178	175	249

Ore extraction in Q4 2021 of 5,475 kt was broadly in line with the previous quarter (Q3 2021: 5,581 kt) as stockpiled material continued to be used to feed the concentrators.

During Q4 both the sulphide and clay plants continued operating above their combined design capacity of 30 Mtpa resulting in increased ore processed of 8,771 kt compared with the previous quarter (Q3 2021: 8,125 kt) and the prior year comparative period (Q4 2020: 7,867 kt).

Copper production in Q4 2021 of 25.9 kt was 6% lower than the previous quarter (Q3 2021: 27.7 kt) due to a decrease in the average grade processed from 0.49% to 0.43%and a reduction in the recovery rate as a result of the composition of the ore processed in the quarter.

Gold production in Q4 decreased to 28.1 koz, 7% lower than the previous quarter (Q3 2021: 30.1 koz) due to a reduction in gold grades processed, and a fall in the recovery rate from 55% to 50% which was impacted by oxidisation of the stockpiled ore processed.

Silver production in Q4 of 178 koz was 2% higher than the previous quarter (Q3 2021: 175 koz) as increased throughput and grades offset a reduction in the recovery rate.

Ore extraction of 27,474 kt in 2021 was 14% lower than the prior year (FY 2020: 32,090 kt) when ore extraction was broadly in line with processing volumes. During 2021 a greater volume of stockpiled ore was used to feed the concentrators which both successfully exceeded their throughput design capacities in 2021. Full year ore processed of 32,700 kt represented a 3% increase compared with the prior year (FY 2020: 31,618 kt) and was 9% above design capacity.

Copper production decreased by 12% to 107.5 kt in 2021 (FY 2020: 122.0 kt) as higher ore processed volumes were offset by a reduction in the average grade processed from 0.51% to 0.46%. The grade reduction in 2021 contributed to a lower recovery rate, which was also impacted by the processing of oxidised ore from stockpiles.

Full year gold output of 112.9 koz was 26% below the prior year comparative period (FY 2020: 151.7 koz) due to a reduction in the average grade and recovery rate at both the sulphide and clay plants, as expected.

Silver production in 2021 reduced by 23% to 732 koz (FY 2020: 949 koz) as the expected decline in silver grades more than offset higher throughput.