OREANDA-NEWS. - Completed disposal of Ekibastuz GRES-1

Focused on core copper business

- Restructuring delivers transformational change in line with strategy

Cash generative production from current assets

Exceptional growth profile from large scale, low cost, open pit mines

FINANCIAL HIGHLIGHTS

- Successful focus on profit margins and cash management

Net cash cost of copper reduced by 13% to 203 USc/lb

Net cash flow from operations of USD 200 million, USD 73 million above the first half of 2013

Improved margins despite lower metal prices

- Net debt of USD 192 million, benefiting from the disposal of Ekibastuz GRES-1

GROWTH PROJECTS

- Continued progress on growth projects

Bozshakol and Aktogay oxides remain on track for commissioning in the second half of 2015

PRODUCTION OUTLOOK

- Focus on copper production in Continuing Group

Full year cathode equivalent output of 80 to 85 kt

Partly offset by reduced by-product output

Oleg Novachuk, Chief Executive of Kazakhmys PLC, said: "We have delivered significant transformation in the past 18 months, with the disposal of our non-core assets and proposed Restructuring. We are focused on copper, a metal with an exceptional outlook, and following completion of the Restructuring we will be a low cost copper producer, providing industry leading growth and the potential for attractive future returns to shareholders. I look forward to reporting on our continued progress."