OREANDA-NEWS. March 30, 2011. This preliminary results announcement includes the audited consolidated financial results of the Kazakhmys Group for the year ended 31 December 2010, including the Group's proportionate share of the unaudited earnings of ENRC PLC (ENRC), in which the Group has a 26% shareholding, on an equity accounted basis.

2010 HIGHLIGHTS

Group EBITDA (excluding special items) of USD 2,835 million

o USD 1,932 million from subsidiaries and joint ventures including discontinued

operations o USD 903 million contribution from ENRC o Significant benefit from higher metals prices

Copper production costs remained globally competitive at 89 USc/lb

o Beating the target set at the start of 2010 o Cost pressures increased over the course of 2010

Underlying Profit for the year of USD 1,489 million

o USD 476 million contribution from ENRC o EPS of 2.79 US cents based on Underlying Profit

Lower rate of tax in 2010

o All-in effective tax rate (CIT and MET) reduced on higher metals prices

Strong financial position ahead of significant capital expenditure programme

o Net debt of USD 350 million from continuing operations, compared to USD 689 million

at 31 December 2009 o Draw down of first USD 700 million of CDB loan to fund growth projects o Market value of ENRC holding USD 4,998 million at 28 March 2011

Dividend

o Final dividend already declared of 16.0 US cents per share o Full year dividend increased by 144% from 2009

Year ended

Year ended

USD  million (unless otherwise stated)

31 December 2010

31 December 2009

Revenues1

3,237

2,404

Earnings2:

 

 

Group EBITDA (excluding special items)3

2,835

1,634

Profit before taxation

1,590

1,028

Underlying Profit

1,489

602

EPS2:

 

 

Basic and diluted (USD )

2.72

1.04

Based on Underlying Profit4 (USD )

2.79

1.13

Free Cash Flow5

718

579

Cash cost of copper after by-product credits6 (USc/lb)

89

72

From continuing operations only.

Includes ENRC's published unaudited results.

Reconciliation of Group EBITDA (excluding special items) to operating profit is found in note 5(a)(iii).

Reconciliation of EPS based on Underlying Profit is found in note 10(b).

Net cash flow from operating activities less sustaining capital expenditure on tangible and intangible assets.

Total of Kazakhmys Copper cash operating costs excluding purchased concentrate less by-product revenues, divided by the volume of copper cathode equivalent sold.

All references to USD  refer to US dollars unless otherwise stated.

Matthew Hird, Chief Financial Officer commented: "Cash generation improved during 2010, benefiting from rising metals prices and controlled costs. Optimisation of our existing assets and managing costs will continue to be a key focus. We entered 2011 financially strong and in a good position to take our major growth projects forward."