23rd May 2006 14:00
Kazakhmys PLC23 May 2006 AGM Statement 23 May 2006 At the company's Annual General Meeting held in London today 23 May 2006, MrVladimir Kim, Chairman of Kazakhmys PLC made the following remarks: In the first quarter of 2006 we saw unprecedented growth in commodity priceswith copper in particular, reaching record levels. Despite the reductions inshare prices of all mining companies seen in recent days, the increases incommodity prices have had a positive impact on the Kazakhmys share priceperformance. Despite the lower production levels in the first two months of 2006 caused bysome operational interruptions and adverse weather conditions, our first quarterproduction results were only slightly lower than the first quarter of 2005. The production volume expansion programme at the Nurkazgan mine and thestripping works at the Zhaman-Aybat mine were successfully completed ahead ofschedule, with the increasing contribution from both mines expected to bereflected in higher copper cathode production from the second quarter of 2006onwards. Against the backdrop of strong commodity price fundamentals, significantopportunities exist across the natural resources sector in Kazakhstan. Wecontinue to search for growth opportunities in our region and remain committedto deliver on our growth strategy declared at the time of IPO. As one would expect of a UK company such as ours, my Board colleagues and I arefirmly committed to delivering high standards of corporate governance. In thatcontext, I am delighted to announce that Jim Rutland has agreed to take on therole of Senior Independent Director of Kazakhmys PLC. In addition, we re-iterateour intention of appointing, in due course, another independent non-executivedirector to provide the Board with further depth. Our employees are a fundamental part of the business and we remain committed toimproving the safety environment across all our operations. As part of ourcommitment to further improve our contribution to local communities, I ampleased to confirm today that we are joining the Extractive IndustriesTransparency Initiative. Looking ahead, we expect commodity markets to remain very healthy throughout2006. We anticipate that Kazakhmys's 2006 production of copper cathode will bemoderately higher compared to 2005, driven by increasing production volumes fromown concentrate. We will continue to maintain our focus on cost controls,improving health, environmental and safety standards and on searching forattractive acquisition targets in our region. I would like to take this opportunity to thank all our employees who contributedso much to Kazakhmys' success in 2005. Their dedication is crucial in deliveringresults and creating shareholder value in the future. For further information please contact: Jinsoo Yang, Head of IR Tel: +44(0)845 080 2369Sergei Stephantsov, Deputy Head of IRKazakhmys PLC Morgan Bone Tel: +44 20 7251 3801Robin WalkerFinsbury Notes to Editor The Group's principal business is the mining, processing, smelting, refining andsale of copper and copper products, including copper cathode and copper rod, andis carried on by the Company's main subsidiary LLC Kazakhmys Corporation("Kazakhmys"). Based on 2004 production, the Group is the 10th largest producerof copper cathode and mined copper in the world. The Group's operations arevertically integrated. Kazakhmys operates 19 open pit and underground mines andtwo smelting and refining complexes in the Republic of Kazakhstan. Kazakhmysalso owns significant rail infrastructure in Kazakhstan and MKM, a copperproducts fabrication company in Germany. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
KAZ.L