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.