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

Notes to the financial statements