Financial statements
FULL VERSION OF THE REPORT
Report of the independent auditor
Statement of financial position
Statement of financial position
| As at December 31, | |||
| Notes | 2017 | 2016 | |
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 4 | 173.028.945 | 164.010.870 |
| Intangible assets | 5 | 15.045.692 | 8.463.858 |
| Other financial assets | 6 | 32.258.446 | 33.599.222 |
| Deferred tax asset | 14 | 10.415.904 | 6.875.616 |
| Advances paid for non-current assets | 1.670.720 | 421.477 | |
| Total non-current assets | 232.419.707 | 213.371.043 | |
| Current assets | |||
| Inventories | 7 | 7.272.093 | 6.464.322 |
| Income taxes prepaid | 772.876 | 11.635.163 | |
| Taxes prepaid and VAT recoverable | 12.244.843 | 5.262.305 | |
| Advances paid and prepaid expenses | 2.819.251 | 5.615.360 | |
| Trade and other receivables | 6 | 35.948.751 | 33.336.070 |
| Other financial assets | 6 | 31.884.021 | 57.239.302 |
| Cash and cash equivalents | 6 | 73.423.065 | 51.900.431 |
| Total current assets | 164.364.900 | 171.452.953 | |
| TOTAL ASSETS | 396.784.607 | 384.823.996 | |
| EQUITY | |||
| Share capital | 8 | 162.399.820 | 162.399.820 |
| Retained earnings | 157.246.242 | 162.758.744 | |
| TOTAL EQUITY | 319.646.062 | 325.158.564 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Historical obligations | 9 | 1.807.468 | 3.844.378 |
| Provisions | 10 | 23.530.091 | 16.971.537 |
| Total non-current liabilities | 25.337.559 | 20.815.915 | |
| Current liabilities | |||
| Historical obligations | 9 | 2.623.486 | 2.428.817 |
| Provisions | 10 | 8.413.484 | 6.846.074 |
| Mineral extraction tax and rent tax payable | 17.948.342 | 8.570.501 | |
| Trade and other liabilities | 22.816.671 | 21.004.125 | |
| Total current liabilities | 51.800.986 | 38.849.517 | |
| TOTAL LIABILITIES | 77.138.545 | 59.665.432 | |
| TOTAL LIABILITIES AND EQUITY | 396.784.607 | 384.823.996 | |
Statement of comprehensive income
Statement of comprehensive income
| In thousands of Tenge | |||
| For the year ended December 31 | |||
| Notes | 2017 | 2016 | |
| Revenue | 11 | 309.746.803 | 243.517.132 |
| Cost of sales | 12 | (121.289.769) | (95.771.814) |
| Gross profit | 188.457.034 | 147.745.318 | |
| Selling, general and administrative expenses | 13 | (114.131.677) | (77.730.381) |
| Exploration expenses | (1.274.476) | (453.179) | |
| Net reversal of allowance on VAT recoverable | 18 | 2.518.795 | 7.875.557 |
| Loss on disposal of property, plant and equipment | (1.463.005) | (379.464)3 | |
| Finance income | 2.239.174 | 2.726.955 | |
| Finance costs | (1.778.313) | (2.414.836) | |
| Foreign exchange gain/(loss), net | 980.842 | (206.343) | |
| Profit before tax | 75.548.374 | 77.163.627 | |
| Income tax expense | 14 | (19.425.344) | (15.803.401) |
| Profit for the year | 56.123.030 | 61.360.226 | |
| Other comprehensive loss for the period not to be reclassified to profit and loss in subsequent periods | |||
| Actuarial loss, net of tax | (280.880) | (223.439) | |
| Total comprehensive income for the year, net of tax | 55.842.150 | 61.136.787 | |
Statement of cash flows
Statement of cash flows
| In thousands of Tenge | |||
| For the year ended December 31, | |||
| Notes | 2017 | 2016 | |
| Cash flows from operating activities | |||
| Profit before tax | 75.548.374 | 77.163.627 | |
| Adjustments to add/(deduct) non-cash items: | |||
| Depreciation, depletion and amortization | 20.034.822 | 17.918.469 | |
| Loss on disposal of property, plant and equipment | 1.463.005 | 379.464 | |
| Foreign exchange (gain)/loss | (1.501.616) | 4.352.824 | |
| Other non-cash income and expenses, net | 2.937.922 | 154.165 | |
| Net reversal of allowance on VAT recoverable | 18 | (2.518.795) | (7.875.557) |
| Change in provisions | 6.727.970 | (6.705.163) | |
| Add finance cost | 1.778.313 | 2.414.836 | |
| Deduct finance income | (2.239.174) | (2.726.995) | |
| Working capital adjustments | |||
| Change in inventories | (932.617) | 975.553 | |
| Change in taxes prepaid and VAT recoverable | (4.463.743) | 6.370.825 | |
| Change in prepaid expenses | 2.769.111 | 2.997.177 | |
| Change in trade and other receivables | (5.589.160) | (6.718.843) | |
| Change in trade and other payables | 1.296.039 | 3.538.446 | |
| Change in mineral extraction and rent tax payable | 12.876.841 | 3.259.472 | |
| Income tax paid | (15.278.611) | (17.636.277) | |
| Net cash generated from operating activities | 92.935.681 | 77.862.063 | |
| Cash flows from investing activities | |||
| Purchases of property, plant and equipment | (27.158.204) | (44.204.480) | |
| Purchases of intangibles assets | (8.721.672) | - | |
| Withdrawal/(placement) of term deposits | 23.840.345 | (60.992.550) | |
| Interest received | 2.195.633 | 440.397 | |
| Net cash generated from investing activities | (9.843.898) | (104.756.633) | |
| Cash flows from financing activities | |||
| Dividends paid to the Company’s shareholder | 8 | (61.354.652) | (20.007.658) |
| Payments of historical obligations | (2.371.325) | (2.127.977) | |
| Net cash used in financing activities | (63.725.977) | (22.135.635) | |
| Net change in cash and cash equivalents | 19.365.806 | (49.030.205) | |
| Cash and cash equivalents at the beginning of the year | 51.900.431 | 101.296.508 | |
| Net foreign exchange difference on cash and cash equivalents | 2.156.828 | (365.872) | |
| Cash and cash equivalents at the end of the year | 6 | 73.423.065 | 51.900.431 |
Statement of change in equity
Statement of change in equity
| In thousands of Tenge | |||
| Share capital | Accumulated loss |
Total equity | |
| As at December 31, 2015 | 162.399.820 | 121.699.270 | 284.099.090 |
| Profit for the year | - | 61.360.226 | 61.360.226 |
| Other comprehensive income | - | (223.439) | (223.439) |
| Total comprehensive income | - | 61.136.787 | 61.136.787 |
| Transactions with shareholder | - | (69.655) | (69.655) |
| Dividends (Note 8) | - | (20.007.658) | (20.007.658) |
| As at December 31, 2016 | 162.399.820 | 162.758.744 | 325.158.564 |
| Profit for the year | - | 56.123.030 | 56.123.030 |
| Other comprehensive loss | - | 55.842.150 | 55.842.150 |
| Dividends (Note 8) | - | (61.354.652) | (61.354.652) |
| As at December 31, 2017 | 162.399.820 | 157.246.242 | 319.646.062 |