Annual Report / 2018

Consolidated
Financial Statements

Consolidated Statement of Profit or Loss and Other Comprehensive Income

In millions of Kazakhstani Tenge


Note


For the year ended 31
December 2018


For the year ended 31
December 2017
(restated)
Revenue 9 436,632 277,046
Cost of sales 10 (313,817) (209,934)
Gross profit   122,815 67,112
Distribution expenses 11 (10,530) (4,316)
General and administrative expenses 12 (34,805) (30,194)
Reversal of impairment losses on non-financial assets 13 15,128 526
Impairment losses on non-financial assets 13 (5,848) (24,210)
Net impairment losses on financial assets 13 (3,770) (3,728)
Loss from disposal of subsidiary 46 (511) -
Net foreign exchange gain/(loss) 15 7,250 (805)
Net gain from business combinations 45 313,517 -
Other income 14 1,242 114,907
Other expenses 15 (5,849) (6,278)
Finance income 17 3,949 5,815
Finance costs 17 (12,672) (8,933)
Share of results of associates 25 22,786 22,007
Share of results of joint ventures 26 (4,743) 22,107
Profit before tax   407,959 154,010
Income tax expense 18 (28,797) (17,287)
Profit from continuing operations   379,162 136,723
Profit from discontinued operations 46 1,104 2,431
PROFIT FOR THE YEAR   380,266 139,154
Other comprehensive income      
Items that may be subsequently reclassified to profit or loss:      
Exchange differences arising on translation of entities with foreign functional currency   (21,118) 383
Items that will not be reclassified to profit or loss:      
Net gain from investments in equity securities at fair value through other comprehensive income   14,509 -
Remeasurements of post-employment benefit obligations   23 113
Share in other comprehensive loss of equity method investments   5 (189)
Other comprehensive (loss)/income for the year   (6,581) 307
TOTAL COMPREHENSIVE INCOME FOR THE YEAR   373,685 139,461
Profit for the year attributable to:      
· Owners of the Company   372,176 138,527
· Non-controlling interest   8,090 627
Profit for the year   380,266 139,154
Total comprehensive income attributable to:      
· Owners of the Company   365,664 138,837
· Non-controlling interest   8,021 624
Total comprehensive income for the year   373,685 139,461
Earnings per share from continuing operations attributable to the owners of the Company, basic and diluted (rounded to Tenge) 19 1,431 525
Earnings per share attributable to the owners of the Company, basic and diluted (rounded to Tenge) 19 1,435 534

Consolidated Statement of Financial Position

In millions of Kazakhstani Tenge Note 31 December 2018 31 December 2017
ASSETS      
Non-current assets      
Intangible assets 20 69,314 8,009
Property, plant and equipment 21 171,352 122,175
Mine development assets 22 118,302 43,530
Mineral rights 23 363,373 2,004
Exploration and evaluation assets 24 23,609 5,608
Investments in associates 25 88,866 101,746
Investments in joint ventures 26 40,442 74,818
Other investments 27 619 1,726
Accounts receivable 28 13 140
Deferred tax assets 18 7,552 6,836
Term deposits 31 13 -
Financial derivative asset 9 1,369 -
Loans to related parties 32 13,245 20,302
Other non-current assets 29 20,847 24,125
    918,916 411,019
Current assets      
Accounts receivable 28 94,477 58,085
Prepaid income tax   4,366 5,493
VAT recoverable   29,799 24,182
Inventories 30 170,261 169,675
Term deposits 31 205 8,472
Loans to related parties 32 10,373 -
Cash and cash equivalents 33 128,819 239,936
Other current assets 29 18,322 18,396
    456,622 524,239
Assets of disposal groups classified as held for sale 47 5,578 2,774
    462,200 527,013
TOTAL ASSETS   1,381,116 938,032
EQUITY      
Share capital 34 37,051 37,051
Additional paid-in capital   4,420 4,785
Reserves   21 (2,229)
Retained earnings   789,563 586,998
Equity attributable to shareholders of the Company   831,055 626,605
Non-controlling interest   131,955 14,571
TOTAL EQUITY   963,01 641,176
LIABILITIES      
Non-current liabilities      
Loans and borrowings 35 16,270 38,910
Finance lease liabilities   350 294
Accounts payable 37 777 582
Provisions 36 32,885 22,688
Deferred tax liabilities 18 77,670 4,443
Employee benefits   954 1,247
Other non-current liabilities 38 5,825 7,711
    134,731 75,875
Current liabilities      
Loans and borrowings 35 183,420 82,374
Finance lease liabilities   129 125
Provisions 36 187 189
Accounts payable 37 51,534 112,642
Other tax and compulsory payments liabilities   10,711 4,168
Employee benefits   147 173
Income tax liabilities   977 5,618
Other current liabilities 38 30,319 14,349
    277,424 219,638
Liabilities of disposal groups classified as held for sale 47 5,951 1,343
TOTAL LIABILITIES   418,106 296,856
TOTAL EQUITY AND LIABILITIES   1,381,116 938,032

Consolidated Statements of Cash Flows

In millions of Kazakhstani Tenge

Note

For the year ended 31
December 2018
For the year ended 31
December 2017
OPERATING ACTIVITIES      
Cash receipts from customers   556,151 435,199
VAT refund   23,403 18,849
Interest received   2,003 3,025
Payments to suppliers   (442,030) (373,006)
Payments to employees   (45,856) (43,213)
Cash flows from operating activities   93,671 40,854
Income tax paid   (28,642) (13,069)
Interest paid   (6,702) (4,430)
NET CASH FROM OPERATING ACTIVITIES   58,327 23,355
INVESTING ACTIVITIES      
Acquisition of property, plant and equipment   (23,578) (14,913)
Proceeds from disposal of property, plant and equipment   76 749
Advance paid for property, plant and equipment   (881) (5,461)
Acquisition of intangible assets   (2,606) (628)
Acquisition of mine development assets   (23,917) (12,011)
Acquisition of exploration and evaluation assets   (8,215) (2,775)
Proceeds from exercise of put option 14 - 173,719
Cash and cash equivalents of disposed subsidiary   (1,218) -
Proceeds from disposal of subsidiary 46 17,942 2
Placement of term deposits and restricted cash   (8,525) (12,095)
Redemption of term deposits and restricted cash   8,666 55,216
Repayment of loans to related parties   - 8
Acquisition of interest in controlled entities net of cash acquired   (2,852) (91)
Acquisition of interest in associates and joint ventures   (8,415) (2,687)
Dividends received from associates, joint ventures and other investments   12,773 36,486
Other   471 56
NET CASH (USED IN)/FROM INVESTING ACTIVITIES   (40,279) 215,575
FINANCING ACTIVITIES      
Proceeds from loans and borrowings 35 100,547 52,793
Proceeds from bonds issued 35 70,000 -
Repayment of loans and borrowings 35 (147,734) (61,410)
Dividends paid to the controlling shareholder 34 (161,661) (65,849)
Dividends paid to non-controlling interest   (273) (19)
Other   (151) (396)
NET CASH USED IN FINANCING ACTIVITIES   (139,272) (74,881)
Net (decrease)/increase in cash and cash equivalents   (121,245) 164,049
Cash and cash equivalents at the beginning of the year   239,936 75,052
Effect of exchange rate fluctuations on cash and cash equivalents   10,128 835
Change in impairment provision for cash and cash equivalents   (21) -
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 33 128,819 239,936

Consolidated Statements of Changes in Equity

In millions of
Kazakhstani
Tenge
Attributable to the shareholders of the Company    
Share capital Reserves Retained earnings Addi- tional paid-in capital Total Non- control- ling interest Total equity
Balance at 1 January 2017 36,785 18,061 495,732 4,785 555,363 12,467 567,830
Profit for the year - - 138,527 - 138,527 627 139,154
Foreign currency translation difference - 386 - - 386 (3) 383
Remeasurements of post-employment benefit obligations - - 113 - 113 - 113
Share of other comprehensive loss in equity method investments - - (189) - (189) - (189)
Total comprehensive income for the year - 386 138,451 - 138,837 624 139,461
Dividends declared - - (65,849) - (65,849) (205) (66,054)
Contribution to share capital 266 - - - 266 - 266
Change in non-controlling interest - - (2,012) - (2,012) 1,685 (327)
Transfers between reserves - (20,676) 20,676 - - - -
Balance at 31 December 2017 37,051 (2,229) 586,998 4,785 626,605 14,571 641,176
Adoption of IFRS 9 (Note 5) - 2,701 (1,889) - 812 (21) 791
Adjusted balance at 1 January 2018 37,051 472 585,109 4,785 627,417 14,550 641,967
Profit for the year - - 372,176 - 372,176 8,090 380,266
Net gain from investments in equity securities at FVOCI (Note 45) - 14,509 - - 14,509 - 14,509
Foreign currency translation difference - (451) (20,676) - (21,127) 9 (21,118)
Remeasurements of post-employment benefit obligations - - 15 - 15 8 23
Share of other comprehensive loss in equity method investments - - 91 - 91 (86) 5
Total comprehensive income for the year - 14,058 351,606 - 365,664 8,021 373,685
Dividends declared
(Note 34)
- - (161,661) - (161,661) (635) (162,296)
Contribution to share capital - - - (365) (365) - (365)
Transfer of revaluation reserve on investments in equity securities at FVOCI to retained earnings upon disposal - (14,509) 14,509 - - - -
Business combinations (Note 45) - - - - - 110,019 110,019
BALANCE AT 31 DECEMBER 2018 37,051 21 789,563 4,420 831,055 131,955 963,010

These consolidated financial statements were approved by management on 5 March 2019.