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Kazakhmys PLC (KAZ)

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Thursday 25 August, 2011

Kazakhmys PLC

Share Buyback

RNS Number : 9982M
Kazakhmys PLC
25 August 2011




25 August 2011







Kazakhmys PLC ("Kazakhmys" or the "Company") announces its intention to commence a buyback programme to purchase up to $250 million of its ordinary shares listed on the London Stock Exchange. The Board believes that the current share price does not appropriately reflect the fundamental value of Kazakhmys and significantly undervalues the Company and its growth prospects. Kazakhmys has a strong balance sheet enabling it to proceed with the proposed share buyback without impacting its planned capital expenditure programme and maintains financial flexibility to pursue other potential value adding opportunities.


The buyback, if implemented, will be made pursuant to the authority granted to the Directors to make market purchases, passed at the Annual General Meeting of the Company held on 13 May 2011.


Implementation of the buyback is subject to the UK Takeover Panel granting a waiver in respect of the potential increase in the aggregate shareholding of Vladimir Kim, Oleg Novachuk and Eduard Ogay (who comprise a Concert Party for the purposes of the UK Takeover Code) that could result from the buyback. The UK Takeover Panel waiver would be subject to approval by independent shareholders. A circular, providing details of the proposed buyback and convening a general meeting, will be sent to independent shareholders in due course. The buyback programme will only commence upon receipt of independent shareholder approval.


In addition, implementation of the buyback will depend upon market conditions and will only proceed if it is in the best economic interest of the Company to do so.




For further information please contact:


Kazakhmys PLC

John Smelt

Head of Corporate Communications

Tel: +44 20 7901 7882

Tel: +44 78 7964 2675

Irina Tretyakova

Financial Analyst

Tel: +44 20 7901 7814

Maksut Zhapabayev

Head of Corporate Communications


Tel: +77 27 3304   556


David Simonson

Tel: +44 20 7726 8400

Ian Middleton

Tel: +44 20 7726 8400

Maria Babkina

Tel: +44 20 7726 8400


Hill & Knowlton Hong Kong


K W Lam

Tel: +852 2894 6321



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

Notes to Editors

Kazakhmys PLC is a leading international natural resources group with significant interests in copper, gold, zinc, silver and power generation.


It is the largest copper producer in Kazakhstan and one of the top worldwide with 17 operating mines, 10 concentrators and 2 copper smelters. Kazakhmys Mining operations are fully integrated from mining ore through to the production of finished copper cathode and rod. Total copper cathode equivalent produced in 2010 from own ore was 303 thousand tonnes. Production is backed by a captive power supply and significant rail infrastructure.


Kazakhmys Mining produces significant volumes of other metals, including zinc, silver and gold. In 2010, it produced 167 thousand tonnes of zinc in concentrate. The Group is in the top ten largest silver producers in the world (14 million ounces produced in 2010).


Kazakhmys Power has a 50% interest in the coal fired Ekibastuz GRES-1 plant, the largest in Kazakhstan with a nameplate capacity of 4,000 MW. Kazakhmys Power also operates the captive coal mines and power stations which supply power to the Mining Division.


The Group is part of the FTSE-100 index of companies listed on the London Stock Exchange and is also listed on the Kazakhstan and Hong Kong Stock Exchanges. It had revenues of $3.2 billion in 2010 with Group EBITDA (excluding special items) of $2.8 billion. The Group employs some 61,000 people, principally in Kazakhstan. The Group's strategic aim is to optimise its current operations, deliver its major growth projects and to diversify and participate in the development of the significant natural resource opportunities in Central Asia.


This information is provided by RNS
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