KAZ Minerals : Investor Presentation July 2020

INVESTOR PRESENTATION

July 2020

IMPORTANT NOTICE

DISCLAIMER

Certain statements included in this presentation contain forward-looking information concerning the strategy of KAZ Minerals PLC ('KAZ Minerals') and its business, operations, financial performance or condition, outlook, growth opportunities and circumstances in the countries, sectors or markets in which it operates. Although KAZ Minerals believes that the expectations reflected in such forward-looking statements are reasonable and are made in good faith, no assurance can be given that such expectations will prove to be correct. By their nature, forward-looking statements involve known and unknown risks, assumptions and uncertainties and other factors which are unpredictable as they relate to events and depend on circumstances that will occur in the future which may cause actual results, performance or achievements of KAZ Minerals to be materially different from those expressed or implied in these forward- looking statements.

Principal risk factors that could cause KAZ Minerals' actual results, performance or achievements to differ materially from those in the forward-looking statements include (without limitation) health and safety, community and labour relations, employees, environmental compliance, business interruption, new projects and commissioning, reserves and resources, political risk, legal and regulatory compliance, commodity prices, foreign exchange and inflation, exposure to China, acquisitions and divestments, liquidity and such other risk factors as are disclosed in KAZ Minerals' most recent Annual Report and Accounts. Forward-looking statements should therefore be construed in light of such risk factors. These forward-looking statements should not be construed as a profit forecast.

No part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in KAZ Minerals, or any other entity, and shareholders are cautioned not to place undue reliance on the forward-looking statements. Except as required by the Listing Rules of the UK Listing Authority and applicable law, rule or regulation, KAZ Minerals undertakes no obligation to update or revise any forward-looking statements, to reflect new information, future events, or otherwise.

Neither this presentation, which includes the question and answer session, nor any part thereof may be recorded, transcribed, distributed, published or reproduced in any form, except as permitted by KAZ Minerals. By attending this presentation, whether in person, by webcast, or call you confirm your agreement to the foregoing and that, upon request, you will promptly return any records or transcript of the presentation without retaining any copies.

All relevant financial definitions can be found in the glossary to the Full Year Results 2019 press release.

1

1. Introduction to

KAZ Minerals

LOW COST COPPER PRODUCER

• Large scale automated processing

RUSSIA

✓

✓

✓

✓

CHINA ✓

Low strip ratios

Low power costs

Water availability

Skilled labour

Transport infrastructure - rail access to China via land border

3

OPERATING ASSETS OVERVIEW

Copper1

kt, 2019

Gold2

koz, 2019

Net cash cost3

USc/lb, 2019

EBITDA4

$ million, 2019

Aktogay	Bozshakol	East Region &	Group
		Bozymchak
146	110	55	311

2

145

54

201

98

31

104

77

564

585

230

1,355

Notes:	4
1. Copper production, defined as payable metal in concentrate and copper cathode from Aktogay oxide ore.

1. Gold production, defined as payable metal in concentrate.
2. Cash operating costs, plus TC/RC on concentrate sales, less by-product revenues, divided by copper sales volume.
3. Excluding MET, royalties and special items.

PRODUCTS AND MARKETS

1

2019 revenues by product

	3% 3%
14%	Copper

Gold

Silver

Zinc

80%

2019 revenues by destination

2

7%

China

17%

Europe

Central

Asia

2

76%

Notes:

1. Contains by-products of gold and silver in concentrate.5

2. Copper cathode, gold bar and silver bar are produced under a tolling agreement with the Balkhash smelter.

AKTOGAY

Large scale, low cost open copper pit mine in East

Region, Kazakhstan

25 Mtpa sulphide ore processing capacity, doubling to 50 Mtpa in 2021

2019 production1 146 kt of copper (including 23 kt from oxide)

2019 net cash cost 98 USc/lb (2018: 103 USc/lb)

Mine life of around 25 years

2019 revenues $863 million (2018: $775 million),	Aktogay open pit
EBITDA $564 million (2018: $530 million)

Notes:

1. Payable metal in concentrate and copper cathode from Aktogay oxide ore.	6

BOZSHAKOL

Large scale, low cost open pit copper mine in

Pavlodar region, Kazakhstan

30 Mtpa ore processing capacity

2019 production1 110 kt of copper and 145 koz of gold

2019 net cash cost 31 USc/lb (2018: 58 USc/lb)

Mine life of c.40 years

2019 revenues $851 million (2018: $756 million),

EBITDA $585 million (2018: $520 million)

Bozshakol sulphide concentrator

Notes:

1. Payable metal in concentrate.	7

EAST REGION AND BOZYMCHAK

Three underground mines in East Region of

Kazakhstan and one open pit copper-gold mine in

Kyrgyzstan

4 Mtpa processed in 3 concentrators

2019 production 55 kt of copper1, 54 koz of gold1, 2,024 of koz silver1, 38 kt of zinc2

2019 net cash cost 104 USc/lb (2018: 94 USc/lb)

Mine lives c.5-15 years

2019 revenues $552 million (2018: $631 million),

EBITDA $230 million (2018: $284 million)

East Region, Artemyevsy underground mine

Notes:

1.	Payable metal in concentrate.	8
2.	Zinc in concentrate.

INDUSTRY LEADING COST POSITION

Net cash cost

USc/lb

KAZ Minerals			174
Copper peer
Diversified peer			148
		144
	131	132	135
	122
	118
	110

77

67

Notes:

84

First quartile: 98 USc/lb1

Size of circle indicates annual copper production volumes.	9
Source: Company data, most recently reported financial period.
1. Source: Wood Mackenzie. First quartile net cash cost cut-off was 98 USc/lb at 31 December 2019.

TRACK RECORD OF DELIVERING GROWTH

Copper production1

kt

CAGR c.40%

311

	Aktogay	295
	Bozshakol
	259
	East Region and
	Bozymchak

144

85

2015

2016

2017

2018

2019

Since its formation in 2014, KAZ Minerals has focused on the construction of large scale copper mining projects in the CIS region

The Group seeks to invest in value-accretive growth projects with low capital intensity and a high rate of return on investment

East Region

The completion and ramp up of the Bozshakol and Aktogay projects has delivered a c.40% CAGR in copper production over the period 2015-19

Successfully applied modern technology to develop copper deposits, building a portfolio of highly profitable mines with low operating costs

Notes:

1. Payable metal in concentrate and copper cathode from Aktogay oxide ore.	10

NEAR AND LONG TERM GROWTH

East Region & Bozymchak	Bozshakol
	Aktogay II - low
Bozshakol and	risk project,
Aktogay	delivers +80
delivered	ktpa 2022-2027
c.40% CAGR,
2015-19

Aktogay I (sulphide and oxide)	Aktogay II		Baimskaya

Strong platform

supports

Baimskaya construction

• Strong NPV and attractive
  IRR
• Favourable long term copper fundamentals

2015

2018

2021

2024

2027

2030

2033

2036

Notes:

Indicative production schedule, not to scale. Assumes 100% ownership, first production from Baimskaya in 2026 and ramp up from 2027. Actual construction timetable and production profile to 11 be determined during feasibility study.

COVID-19 RESPONSE

Ensuring the safety, health and wellbeing of employees and contractors is the Group's first priority

Comprehensive measures taken to protect staff, no material disruption to operations or sales in H1 2020

Provided support to local communities and increased stocking of critical spares and consumables

Bozshakol and Aktogay shifts extended through overtime from 22 March until the end of May, testing and isolation procedure for all new arrivals

Kazakhstan imposed a second phase of quarantine measures from 5 July 2020, reflecting heightened risk in the country and to the Group's operations for the second half of the year

Ongoing restrictions on the movement of staff and contractors and deferred maintenance may impact production and unit costs in H2 2020

12

2. Review of operations

HEALTH AND SAFETY

Two fatalities in 2019

• No fatality is acceptable, target is zero
• Zero fatalities occurred in open pit operations

Improving our performance

Goal Zero programme launched

New ground control risk assessment initiative for underground mines

Occupational health - invested in wellbeing projects for staff at remote sites, including mental health services

Total recordable injury frequency rate1

1.74

1.38

2018

2019

Notes:

1. Total Recordable Injury Frequency Rate or TRIFR is the number of Recordable Injuries occurring per million hours worked.	14

SUSTAINABILITY

CO2 emissions per unit of ore processed

(kt)

2019 0.047

2018 0.049

2017 0.051

2016	0.094
2015	0.200

Water withdrawal per unit of copper produced

(megalitres/kt)

2019		96.0
2018			145.6
2017				190.4
2016	212.4
2015	180.7

Ramp up of modern, efficient facilities continues to reduce environmental impacts

Water consumption significantly reduced in 2019 due to increase in water recycling at Bozshakol

Baimskaya copper project in Russia to draw power from low carbon energy sources and further reduce the Group's CO2 intensity

Gained entry to FTSE4Good Index Series

15

AKTOGAY

FY 2019:

• Copper production1 145.7 kt (2018: 131.4 kt),
  including 22.7 kt from oxide (2018: 25.7 kt)

Q2 2020:

• 6,280 kt sulphide ore processed (Q1 2020: 6,064
  kt), copper grade 0.55% (Q1 2020: 0.57%)
• Copper production1 increased by 3% to 34.3 kt (Q1 2020: 33.3 kt), including oxide 5.4 kt (Q1 2020: 6.1 kt)

Oxide production focused on the re-irrigation of previously extracted material, oxide ore mining temporarily suspended in Q2 2020

Covid-19 restrictions are limiting access to site for contractors and international staff

On target to deliver full year copper production1 guidance of 120-130 kt2

Copper (kt)1	2020 full year guidance
	120 -130
	68

	33	34
	Q1	Q2	H2
Silver (koz)1	246	Full year guidance
		c.500
118	128
	Q1	Q2	H2

Sulphide ore throughput and grade

			Throughput (Mt)		Grade (%)
	12.7 Mt		12.3 Mt
	0.58%	0.56%
	H1 2019		H1 2020

Notes:

1.	Payable metal in concentrate and copper cathode from Aktogay oxide ore.	16
2.	Range includes c.20 kt of cathode production from oxide ore.

BOZSHAKOL

FY 2019:

• Copper production1 110.2 kt (2018: 101.6 kt)
• Gold production1 144.8 koz (2018: 127.8 koz) Q2 2020:
• 7,595 kt ore processed (Q1 2020: 8,040 kt),
  copper grade 0.53% (Q1 2020: 0.48%)
• Scheduled maintenance deferred, now weighted towards the second half of the year
• Copper production1 30.6 kt (Q1 2020: 29.8 kt), benefitted from higher copper grade
• Gold production1 41.0 koz (Q1 2020: 42.3 koz), due to lower processing volumes

Covid-19 restrictions are limiting access to site for contractors and international staff, testing of new arrivals has resulted in a shortage of mining staff

Full year guidance maintained at 110-120 kt copper1 and 140-150 koz gold1

Copper (kt)1	2020 full year
	guidance
	110 - 120
	60

	30	31
	Q1	Q2		H2
Gold (koz)1				Full year guidance
		83		140 -150
42	41
	Q1	Q2		H2
Silver (koz)1				Full year guidance
				465	c.700
232	233
	Q1	Q2		H2

Notes:

1. Payable metal in concentrate.	17

EAST REGION AND BOZYMCHAK

FY 2019:

• Copper production1 55.5 kt (2018: 61.7 kt)
• Gold and silver production1 exceeded guidance
• Zinc in concentrate production of 38.3 kt (FY 2018: 49.7 kt)

Q2 2020:

• 977 kt ore processed (Q1 2020: 808 kt), copper
  grade 1.70% (Q1 2020: 1.69%)
• Copper production1 14.0 kt (Q1 2020: 11.8 kt)
• Nikolayevsky concentrator operated at full capacity following scheduled idling in January
• Strong by-product output driven by higher ore throughput and grades

Achieving full year guidance for all metals is subject to potential disruption from Covid-19 in the second half of the year

Copper (kt)1	2020 full year guidance
26	c.50

	12	14
	Q1	Q2	H2
Gold (koz)1			Full year guidance
		26	40 - 50
12	13
	Q1	Q2	H2
Silver (koz)1			Full year guidance
		1,030	c.1,800
443	587
	Q1	Q2	H2
Zinc (kt)2	24	Full year guidance
		c.40
9	15
	Q1	Q2	H2

Notes:

1.	Payable metal in concentrate.	18
2.	Zinc in concentrate.

2020 GROUP PRODUCTION GUIDANCE

Copper1

kt

Gold3,4

koz

Silver3

koz

Zinc5

kt

Aktogay	Bozshakol	East Region &	Group
		Bozymchak
120 - 1302	110 - 120	c.50	280 - 300

140 - 150

40 - 50

180 - 200

c.500

c.700

c.1,800

c.3,000

c.40c.40

Notes:	19
1. Payable metal in concentrate and copper cathode from Aktogay oxide ore.

1. Range includes c.20 kt of cathode production from oxide ore.
2. Payable metal in concentrate.
3. Minimal volume of gold recovered from Aktogay material. Q1 2020 include 0.6 koz production.
4. Zinc in concentrate.

3. 2019 Results

2019 RESULTS HIGHLIGHTS

Higher copper1 and gold production2 offset 8% lower copper prices in 2019

Industry leading net cash cost of 77 USc/lb3

Final dividend of 8.0 USc/share recommended (full year 12.0 USc/share)

Producing assets support growth investments:

• Aktogay expansion project on track
• Baimskaya feasibility study work ongoing, expected to be completed by the end of 2020

Production growth

kt	2018	2019
+6%

+10%

295311

183201

Copper¹

Gold²

Costs reduced

USc/lb

144	-3%		2018		2019	-9%
140
				85	77
Gross cash cost⁴				Net cash cost³

Notes:

1. Payable metal in concentrate and copper cathode from Aktogay oxide.	21

1. Payable metal in concentrate.
2. Cash operating costs, plus TC/RC on concentrate sales, less by-product revenues, divided by copper sales volume.
3. Cash operating costs, plus TC/RC on concentrate sales, divided by copper sales volume.

2019 HIGHLIGHTS (CONT'D)

Revenues

USD million

	+5%
2,162	2,266

2018

2019

EBITDA1

USD million

Earnings per share

Ordinary EPS - Basic, USD

+6%

1.21

1.14

20182019

Mineral resources

Contained metal in measured and indicated mineral resources

+3%

			1,355
	1,310

2018

2019

Copper (Mt)

	19.1
12.8
2018	2019

Gold (Moz)

	18.0
6.3
2018	2019

Notes:

1. Excluding MET, royalties and special items.	22

DELIVERING AGAINST OUR TARGETS

Production
Copper1	kt
Gold2	koz
Silver2	koz

290310

311

c.194

201

c.3,000

3,382

Zinc3	kt
Gross cash cost4 USc/lb

38

4045

Aktogay

Bozshakol

East Region and Bozymchak

105	125
102
130	150
		137
230	250
		234

Notes:

1. Payable metal in concentrate and copper cathode from Aktogay oxide ore.	23

1. Payable metal in concentrate.
2. Zinc in concentrate.
3. Cash operating costs, plus TC/RC on concentrate sales, divided by copper sales volume.

FINANCIAL UPDATE

$m (unless otherwise stated)	2019	2018	Copper prices reduced by 8% to $6,000/t in 2019
Revenues	2,266	2,162	(2018: $6,526/t)
			EBITDA of $1,355 million, 60% margin
EBITDA1	1,355	1,310
			Industry leading first quartile net cash cost2 of
Margin	60%	61%
77 USc/lb (2018: 85 USc/lb)
Net cash cost (USc/lb)2	77	85	$1.7 billion of debt facilities signed:
			- $600 million DBK facility to finance Aktogay
Free Cash Flow3	411	585
expansion, June 2019
Ordinary EPS - basic ($)	1.21	1.14	- $100 million CAT facility, November 2019
			- $1,000 million PXF, January 2020
Net Debt	(2,759)	(1,986)
			Final dividend of 8.0 USc/share recommended
			(full year 12.0 USc/share)
			Net debt $2,796 million at 31 March 2020 (31
			December 2019: $2,759 million)

Notes:

1. Excluding MET, royalties and special items.	24

1. Cash operating costs, plus TC/RC on concentrate sales, less by-product revenues, divided by copper sales volume.
2. Net cash flow from operating activities before capital expenditure and VAT associated with major growth projects, less sustaining capital expenditure.

VOLUME GROWTH OFFSETS LOWER PRICES

($m)

	Volumes1					Commodity prices3
			53
66	14								1,355
	(20)			4
1,310			(1)
				(71)
	Copper

EBITDA	Aktogay	Bozshakol	East Region	By-product	Cost	Copper	By-product	EBITDA
2018			and	volumes	impact ²	prices	prices	2019

Bozymchak

Notes:

1. Change in sales volumes at current year margin.	25

1. Net change in cash costs per tonne.
2. Change in realised prices applied to prior year sales volumes.

COMPETITIVE UNIT COSTS

Copper sales volumes (kt)		Gross cash cost (USc/lb)
		By-product credit (USc/lb)
		Net cash cost (USc/lb)

Aktogay

	2019
148	gross cash cost guidance
105-125 USc/lb
130

		106	102	(4)
				98
2018	2019	2018	2019	2019

Unit costs reduced mainly due to higher production volumes

Deferral of mill maintenance from December 2019 to January 2020 also reduced costs

Bozshakol

102 107

2018 2019

2019

gross cash cost guidance

130-150 USc/lb

129	137	(106)
		31
2018	2019	2019

Gross cash cost of 137 USc/lb includes 5 USc/lb associated with 26 koz gold bar inventory sale in H1 2019

Inventory sale benefited net cash cost of 31 USc/lb by 9 USc/lb

26

COMPETITIVE UNIT COSTS (CONT'D)

Copper sales volumes (kt)

Gross cash cost (USc/lb)

By-product credit (USc/lb) Net cash cost (USc/lb)

East Region and Bozymchak

2019

gross cash cost guidance

230-250 USc/lb1

High sales volumes, cost control actions and weaker tenge offset local inflation

Gross and net cash cost benefited from sale of 7 kt

64 62

2018 2019

244	234	(130)
		104
2018	2019	2019

of copper from inventory

Net cash cost increased to 104 USc/lb (2018: 94 USc/lb) due to reduction in zinc revenues

Group

	317
296
		144	140	(63)
				77
2018	2019	2018	2019	2019

Group net cash cost is amongst the lowest of pure- play copper producers globally at 77 USc/lb (2018: 85 USc/lb)

Notes:

1. Cost guidance lowered at H1 2019 from 260-280 USc/lb.	27

MOVEMENT IN GROUP NET DEBT

($m)	Expansionary	FY 2019	FY 2019
	capex	Actual Guidance
	Aktogay I & II	509	570
	Bozshakol	37	40		4
	East Region & Bozymchak 56	70
	Baimskaya	111	150	(47)	(2,759)
	Other	5	20

						Total
1,355		Sustaining	FY 2019	FY 2019
	capex	Actual Guidance
				Aktogay	44	50
(1,986)				Bozshakol	55	50
				East Region & Bozymchak 42	50
				Corporate	1	-
				Total	142	150
						(92)
					(206)
			(282)

718 850

(435)

(718)

(142)

(210)

Working capital

Inventories (consumables and ore stockpiling)

Prepayments (VAT receivable)

Receivables (timing of sales, provisional pricing)

Payables (customer advance receipts)

Total

(128)

(72)

(51)

(31)

(282)

Net debt¹	EBITDA	Working	MET and	Income	Net	Sustaining	Expansionary	Acquisition of	Dividends	Other	Net debt¹
31 Dec 2018		capital	royalties paid	tax paid	interest paid	capex	capex	Baimskaya²	paid	movements³	31 Dec 2019

Notes:

1. The excess of borrowings over cash and cash equivalents and current investments.	28

1. Net of $1 million cash acquired.
2. Includes $45 million in respect of NFC's equity investment in Koksay, $41 million of net VAT paid associated with major growth projects, foreign exchange and other movements.

2020 FINANCIAL GUIDANCE

Gross cash cost

(USc/lb)

Aktogay

Bozshakol

East Region & Bozymchak

110-130

130-150

260-280

Sustaining capex

($m)

Aktogay	60
Bozshakol	60
East Region	50
& Bozymchak

Group170

Expansionary capex

($m)

Aktogay II1	300-350
East Region	75
& Bozymchak2
Baimskaya3	150
Other4	20
Group	545-595

Notes:

1. Capital expenditure in 2020 forecast to be $300-350 million, which is lower than the previous guidance of $400 million. The balance of the unchanged $1.2 billion project budget will be 29 incurred in 2021.

1. Includes Artemyevsky underground mine extension of $60 million and $15 million for Bozymchak underground extension.
2. Capital expenditure of $150 million approved in 2020 to complete feasibility study and continue pioneer works. Evaluating potential for additional equipment deliveries in 2020 shipping window.
3. Including Koksay.

4. Aktogay expansion project

AKTOGAY II - LOW-RISK NEAR TERM GROWTH

$1.2 billion project approved in December 2017 to double sulphide ore capacity from 25 to 50 Mtpa by 2021

Low-risk execution due to existing site infrastructure and identical concentrator design to Aktogay I and Bozshakol

Adds c.80 kt of annual copper production from 2022- 27 and c.60 kt from 2028 onwards

Net cash cost 100-120 USc/lb1

Remaining mine life of around 25 years

Copper processing grade guidance2

		Life of mine sulphide
2019-21	2022-27	resource grade
c.0.50%	c.0.40%	c.0.33%

Copper production guidance3

2022-272028+

+80 ktpa

+60 ktpa

Notes:

1.	Net cash cost guidance in USc/lb for the period 2022-27 in 2016 US dollar terms.	31
2.	Combined guidance for Aktogay I and II sulphide grades.
3.	Incremental production guidance for Aktogay II only.

PROJECT SCHEDULE AND PROGRESS

2019 H2 key milestones

Completed

Main concentrator building areas enclosed

Ball Mill #1 and SAG Mill shell and heads installation

Towers for 220 and 35 kV power lines Water supply pumphouses enclosed

Ongoing

Primary crusher and conveyor

Tailings thickeners

Site railway extension to load out area

Mine maintenance facilities Permanent camp upgrade

✓

✓

✓

✓

Mill installation works, January 2020

Schedule

Complete mill installations First ore processed

2021 end of 2021

32

Ball Mill #1 installation

Overland conveyor

and crusher

5. Baimskaya copper

project

BAIMSKAYA PROJECT OVERVIEW

Baimskaya is one of the world's largest undeveloped copper resources, with the potential to be a large scale, low cost open pit copper mine

The Group acquired the Baimskaya copper project for $900 million in cash and shares in January 2019

• $675 million Initial Consideration plus Deferred Consideration of $225 million

Estimated capex budget of around $7 billion1, with c.10% expected to be incurred after first production

70 Mtpa ore processing capacity

Potential for resource expansion in c.1,300 sq. km licence area

Baimskaya

Baimka mineral trend and licence area

Licence area Mineral trend

Peschanka deposit

10 km

Notes:	36
1. In nominal terms based on 100% share of development capital expenditure, subject to confirmation in further study work.

GLOBALLY SIGNIFICANT COPPER RESOURCE

Mineral Resources													Possible project
(Mt copper)1															Under construction
42.2
37.0	27.3	26.7	24.1												KAZ Minerals asset
					22.0
							15.2	15.0	13.6	13.4	13.0	10.8
									9.5
												7.7	7.2	7.1	6.9
													5.5
														4.6
	Kamoa Kakula	Pebble	Resolution	Udokan	Reko Diq	La Granja	Tampakan	El Pachon	Quellaveco	Los Azules	Taca Taca	Cascabel	Baimskaya (Peschanka)	Vizcachitas	Michiquillay	Rio Blanco	Aktogay	Galore Creek	Bozshakol

The Peschanka deposit in the Baimskaya licence area ranks in the top 10 undeveloped greenfield copper projects globally

Notes:	37
1. Source: Company data. Mineral Resources include Measured and Indicated Resources (bottom bar) and Inferred Resources (top bar).

BAIMSKAYA UPDATE

Bankable feasibility study expected to be completed by the end of 2020

Latest project parameters, based on feasibility study work completed to date:

• Drilling results indicate a potential increase in Mineral Resources which would lead to an extension of the mine life
• Ore processing capacity increased from 60 Mtpa to 70 Mtpa
• Two lines to be ramped up in consecutive phases 12 to 18 months apart, reducing peak funding

requirement compared to simultaneous startup

Peschanka ore samples, 2019

• Capital budget of around $7 billion2, with c.10% expected to be incurred after first production

Notes:	38
1.	See page 57 for further details of Mineral Resources.
2.	In nominal terms based on 100% share of development capital expenditure, subject to confirmation in further study work.

INFRASTRUCTURE OVERVIEW

Power

Government funded 110 kV power line from Bilibino to Baimskaya

Pevek

Floating nuclear facility 'Akademik Lomonosov' installed in Pevek in Q4 2019

Bilibino

110 kV power

220 kV power line to Magadan for production phase

Road

Construction of government financed all-seasonOmolon-Anadyr highway progressing

Shipping

2024 cargo target for Northern Sea Route set at 80 Mt

Baimskaya

220 kV power

Magadan

Copper concentrate transported by sea to Asian markets

Power

Road

Shipping

39

110 kV power line

and transformer

August 2019

Completed bridge at Ilirney

August 2019

Floating nuclear power facility

'Akademik Lomonosov' Murmansk, August 2019

			PEVEK
			Krasnoarmeisky
			Komsomolsky
The Sakha Republic
(Yakutia)	CHERSKY
			Mayskoye
			Polymetal
	Anuysk
		Karalveem
		BILIBINO
Klen		Kekura
	Highland Gold
Highland Gold
Exploration &
Exploration & development
development	ILIRNEY
			Kupol
	Baimskaya		Kinross
			Kayen
			Highland Gold
			Exploration &
			development
			Gold mine
OMOLON			Existing motor roads / winter roads
		with extended life
			Existing winter roads
			All-season"Magadan-Anadyr"
Magadan Region			highway (under construction)
			All-season highway (completed)
100	200
	km

Valunisty

Highland Gold

ANADYR

6. Positioned for growth

STRONG PLATFORM

World class open-pit copper mines, consistently achieving production targets

• 311 kt copper production
• 201 koz gold production

$1,355 million EBITDA at 60% margin

Industry leading 77 USc/lb net cash cost

$1.7 billion of debt facilities signed in last nine months

Proven project team with track record of delivery

45

POSITIONED FOR GROWTH

KAZ Minerals is a high growth, low cost copper producer generating significant cash flow

Copper market fundamentals forecast deficit in coming decade, without supply from new projects

Near term production growth from Aktogay expansion

Long term production growth from Baimskaya copper project, in the first quartile of the cost curve1

Generating value and volume over the long term, underpinned by structural demand growth for copper as the world transitions to a low carbon economy

Notes:	46
1. The parameters of the project will be confirmed on completion of the feasibility study.

APPENDIX

SUMMARY INCOME STATEMENT

Key line items						2019 revenues split by product
$m (unless otherwise stated)	2019		2018
Revenues	2,266		2,162		3% 3%
							14%
Cost of sales		(1,124)		(1,077)		Copper
Gross profit		1,142		1,085
Operating profit	923		851				Gold
Net finance costs		(177)		(212)				Silver
Net foreign exchange (loss)/gain		(20)		3
Profit before tax		726		642				Zinc
Income tax expense		(155)		(132)
Profit for the year		571		510		80%
EPS based on Underlying Profit ($) - basic		1.21		1.18
EPS based on Underlying Profit ($) - diluted	1.17		1.18
Reconciliation of Underlying Profit
$m		2019	2018
Profit attributable to equity holders of the Company		571	510
Special items within operating profit, net of tax		-	20
Underlying Profit		571	530

48

REVENUES AND SALES VOLUMES

Revenues

$m	2019	2018
Copper cathode	828	690
Copper in concentrate	996	1,087
Gold bar	133	68
Gold in concentrate	185	144
Silver bar	40	40
Silver in concentrate	19	15
Zinc in concentrate	58	101
Other	7	17
Total revenues	2,266	2,162

Sales volumes

kt (unless otherwise stated)	2019	2018
Copper cathode	138	106
Copper in concentrate1	179	190
Gold bar (koz)	97	54
Gold in concentrate (koz)1	128	115
Silver bar (koz)	2,460	2,518
Silver in concentrate (koz)1	1,106	1,009
Zinc in concentrate	38	50

Average realised prices

	2019	2018
Copper cathode ($/t)	6,027	6,531
Copper in concentrate ($/t)2	5,551	5,709
Gold bar ($/oz)	1,374	1,265
Gold in concentrate ($/oz)2	1,443	1,258
Silver bar ($/oz)	16.2	15.7
Silver in concentrate ($/oz)2	16.7	15.3
Zinc in concentrate ($/t)	1,548	2,015

Average LME and LBMA Prices

	2019	2018
Copper ($/t)	6,000	6,526
Gold ($/oz)	1,393	1,268
Silver ($/oz)	16.2	15.7
Zinc ($/t)	2,546	2,922

Notes:

1. Payable metal in concentrate.	49

2. After the deduction of processing charges.

REVENUE RECONCILIATION

Volume growth offset decrease in commodity prices ($m)

Volumes1

Average LME

FY 2019 vs FY 2018

Commodity prices2

10226

2,162

53

4

2,266

(8)%

(10)

By-products volume ($m)

Gold	80
Silver	1
Zinc	(19)
Other	(9)

(71)			(13)%
	Copper	Zinc

Average LBMA

FY 2019 vs FY 2018

Revenues	Aktogay	Bozshakol East Region	By-product	Copper	By-product	Revenues
2018		and	volumes	prices	prices	2019
		Bozymchak

10%	3%
Gold	Silver

Notes:

1. Change in sales volumes at current year realised prices.	50

2. Change in realised prices applied to prior year sales volumes.

CASH FLOW

$m	2019	2018
EBITDA1	1,355	1,310
Change in working capital	(282)	(115)
Interest paid	(230)	(229)
MET and royalties paid	(206)	(208)
Income tax paid	(92)	(95)
Foreign exchange and other movements	8	7
Sustaining capital expenditure	(142)	(85)
Free Cash Flow	411	585
Expansionary and new project capital expenditure	(718)	(530)
Acquisition of Baimskaya copper project, net of cash acquired	(435)	-
Net VAT (paid)/received associated with major growth projects	(41)	3
Interest received	20	32
Dividends paid	(47)	(27)
Other investments	45	10
Other movements	(3)	(3)
Cash flow movement in net debt	(768)	70

Notes:

1. EBITDA excludes MET, royalties and special items.	51

SUMMARY BALANCE SHEET

Assets

$m	2019	2018
Non-current assets	4,596	2,897
Cash and cash equivalents and current investments	541	1,469
Other current assets	929	674
Total	6,066	5,040

Non-current assets

$m	2019	2018
Intangible assets	5	6
Property, plant and equipment	2,756	2,130
Mining assets	1,457	432
Other non-current assets	338	301
Deferred tax asset	40	28
Total	4,596	2,897

Equity & liabilities

$m	2019	2018
Equity	2,174	1,054
Borrowings	3,300	3,453
Other liabilities	592	533
Total	6,066	5,040

Net debt

$m	2019	2018
Cash and cash equivalents and current investments	541	1,469
Less: restricted cash	-	(2)
Borrowings	(3,300)	(3,453)
Short-term	(545)	(539)
Long-term	(2,755)	(2,914)
Total	(2,759)	(1,986)

52

DEBT FACILITIES

	Balance1	Undrawn	Final
Facility	$m, 31 Dec 19	$m	maturity	Interest rate	Repayment details & covenants
CDB Bozshakol/	1,174	-	2025	$ LIBOR + 4.50%	Semi-annual principal and interest payments
Bozymchak					Balance sheet covenant
CDB Aktogay	1,223	-	2029	$ LIBOR + 4.20% (USD	Semi-annual principal and interest payments2
				facility)	Balance sheet covenant
				PBoC 5 year (RMB facility)
DBK Aktogay I	236	-	2025	$ LIBOR + 4.50%	Semi-annual principal and interest payments
					Balance sheet covenant
DBK Aktogay II	320	2803	2034	$ LIBOR + 3.90%	Repayments commence from 2022
					Semi-annual principal and interest payments
					Balance sheet covenant
PXF	3004	-4	20245	$ LIBOR + 2.50%	Monthly principal repayments commencing from
Amended $1 billion				Variable range 2.25% to	January 2021
PXF signed on 28				3.50%	Monthly interest payments
Jan 2020					Initial final maturity in December 2024, with extension
					options to December 2025 or December 2026
					Income statement covenant
CAT	74	263	2023-26	$ LIBOR + 3.00%	Quarterly principal repayments from December 2020,
$100 million facility				Variable range 3.00% to	with final maturities between December 2023 and March
signed on 15 Nov				4.50%	2026
2019					Income statement covenant

Notes:	53
1. Drawn amount excludes arrangement fees.

1. RMB facility interest payments are quarterly.
2. Undrawn as at 31 December 2019.
3. Amended $1 billion PXF facility was fully drawn down in Q1 2020.
4. Extendable up to 2026.

ILLUSTRATIVE DEBT REPAYMENT PROFILE

Repayment Profile1

($m) 1000 900

800

700

600

500

400

300

200

100

0

CAT		PXF 2,3		DBK Aktogay II		DBK Aktogay I		CDB Aktogay		CDB Bozshakol/Bozymchak

Extension Options3

provide for repayment of $333 million in 2025-26, subject to agreement of lenders

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030-344

Notes:

1.	Assumes all available debt facilities are fully drawn, for illustrative purposes only. Actual loan balance may vary.	54
2.	New $1,000 million PXF facility was fully drawn in the first quarter of 2020.
3.	Extension Options are exercisable on the first and second anniversaries of signing.
4.	Average debt repayment per annum.

GROUP CASH COST RECONCILIATION

$m (unless otherwise stated)	2019	2018	20171		H2 2019	H1 2019	H2 2018	H1 2018	H2 20171	H1 20171
Copper sales volumes (kt)	317	296	256		173	144	155	141	141	115
Revenues	2,266	2,162	1,663		1,214	1,052	1,064	1,098	942	721
EBITDA2	(1,355)	(1,310)	(1,038)		(735)	(620)	(620)	(690)	(609)	(429)
Pre-commercial production3	-	-	78		-	-	-	-	38	40
Corporate costs and other adjustments	(37)	(28)	(25)		(17)	(20)	(13)	(15)	(15)	(10)
TC/RCs on concentrate sales	104	115	98		57	47	58	57	53	45
Gross cash cost	978	939	776		519	459	489	450	409	367
Gross cash cost (USc/lb)	140	144	138		136	144	143	145	132	144
By-product credits	(442)	(381)	(406)		(239)	(203)	(187)	(194)	(201)	(205)
Net cash costs	536	558	370		280	256	302	256	208	162
Net cash cost (USc/lb)	77	85	66		73	80	88	82	67	64

Notes:

1. Includes the results of pre-commercial production.	55

1. EBITDA excludes MET, royalties and special items.
2. Cash operating costs capitalised during pre-commercial production.

MINERAL RESOURCES SUMMARY - 31 DEC 2019

		Aktogay	Aktogay	Bozshakol	Bozshakol	Artemyevsky	Irtyshsky	Orlovsky	Bozymchak
		sulphide	oxide	sulphide	clay
	Resources1 (Mt)	1,557.2	46.4	879.0	112.9	21.32	3.2	10.1	13.6
	Copper grade (%)	0.33	0.35	0.36	0.43	1.96	2.25	2.88	0.78
	Contained copper (Mt)	5.1	0.2	3.2	0.5	0.4	0.1	0.3	0.1
	Gold grade (g/t)	-	-	0.14	0.19	0.90	0.38	0.79	1.30
	Contained gold (Moz)	-	-	4.0	0.7	0.6	-	0.3	0.6
	Silver grade (g/t)	-	-	1.1	1.3	81	90	41	7.9
	Zinc (%)	-	-	-	-	4.03	5.27	4.43	-
	Molybdenum grade (%)	0.008	-	0.008	0.006	-	-	-	-
	Type of mine		Open pit	Open pit	Underground	Underground	Underground	Open pit /
									underground
	Concentrator		On-site	On-site	Nikolayevsky	On-site	On-site
	Description	Large scale mine, located in East	Large scale mine, located in Pavlodar	Mine with	Irtyshsky has	Orlovsky is the	Bozymchak is
		Region of Kazakhstan. Commenced	Region of Kazakhstan. Commenced	polymetallic ore,	been operating	largest mine in	located in
		production of copper cathode from	production of copper in concentrate from	operating since	since 2001	East Region	Kyrgyzstan
		oxide ore in December 2015 and	sulphide ore in February 2016	2005		by copper
		copper in concentrate from sulphide					metal in ore
		ore in February 2017					extracted

Notes:

1.	Measured and indicated as at 31 December 2019.	56
2.	Includes Artemyevsky II expansion.

PESCHANKA DEPOSIT MINERAL RESOURCES

		Measured	Indicated	Inferred	Total
Mineral resources	Mt	139	1,289	774	2,202
Copper grade	%	0.72	0.44	0.36	0.43
Contained copper	Mt	1.0	5.7	2.8	9.5
Gold grade	g/t	0.39	0.26	0.16	0.23
Contained gold	Moz	1.7	10.8	4.0	16.5
Silver grade	g/t	4.0	2.4	2.0	2.4
Molybdenum grade	ppm	140	120	90	110
					57

TAILINGS FACILITIES

	Facility	Type	First	Expected	Status
	construction	closure date
	Bozshakol	Downstream	2016	2058	Active
	Aktogay	Downstream	2017	2045	Active
	Bozymchak	Dry stack	2014	2032	Active
	East Region
	Zhezkentsky	Upstream	1989	2026	Active
	Nikolayevsky1	Upstream	1980	20201	Active
Notes:				58
1. Artemyevsky mine transitioning in 2020 to in-pit tailings disposal in the Nikolayevsky open pit.

SENIOR MANAGEMENT

Oleg Novachuk, Chair	Eldar Mamedov, General Director, KMM LLP
Joined the Company in 2001, former Chief Executive and was	Joined the Company in 1996, former Head of Legal and
appointed Chair on 1 January 2018, with responsibility for	was appointed as General Director of the KMM LLP in
strategy, government relations and business development.	2014, with responsibility for government relations,
	legal, procurement and administration.

	Andrew Southam, Chief Executive Officer	Madina Kaparova, Group Procurement Director
	Joined the Company in 2006, former Chief Financial Officer	Joined the Company in 1998 and was appointed Group
	and was appointed Chief Executive Officer on 1 January 2018,	Procurement Director in 2016, with responsibility for
	with responsibility of executive management of the Group and	development and implementation of procurement strategy.
	leading the senior management team in the day to day running
	of the business.
	John Hadfield, Chief Financial Officer	Sergey Leu, General Director, Bozshakol
	Joined KAZ Minerals in November 2017 as Deputy Chief	Joined KAZ Minerals in August 2016 as General Director
	Financial Officer and was appointed Chief Financial Officer on	of Bozshakol with responsibility for management of
	1 January 2018.	Bozshakol operations.
	Mian Khalil, General Director, Projects	Ilsur Dautov, General Director, East Region
	Joined the Company in 2010, with responsibility for	Appointed General Director of the East Region in March
	construction of major growth projects, Aktogay and Bozshakol	2014. Responsible for the management of East Region
	and is currently focused on the Aktogay expansion project and	operations.
	Baimskaya (Peschanka) copper project in Chukotka, Russia.
	Philip Welten, General Director, Aktogay	Ilyas Tulekeev, General Director, Bozymchak
	Joined KAZ Minerals in 2018 as General Director of Aktogay,	Joined KAZ Minerals in 2006 and was appointed General
	with responsibility for management of Aktogay operations.	Director of Bozymchak in 2011, with responsibility for
		management of Bozymchak operations.
		59

KAZ Minerals PLC

6th Floor, Cardinal Place 100 Victoria Street London

SW1E 5JL

UK

www.kazminerals.com