Results of "Corporation Kazakhmys" (Kazakhstan) in 6 months of 1999

/KASE, November 3, 99, Nadir Jakupov, Galina Tsalyuk/ - According to listing requirements, OJSC "Corporation Kazakhmys" (Jezkazgan, official list of securities, category "B") provided Kazakhstan stock exchange (KASE) with its financial statements for 6 months of 1999 (balance sheet, income statement, and cash flow statement), certificate of state re-registration of a legal entity and a new edition of the Charter. Following are financial results of the emitter in the first half of current year (in thousand tenge): Article As of July 1'98 As of July 1'99 Change Authorized capital (announced) 100 731 98 231 -2,5 Authorized capital (paid) 98 231 98 231 0 Shareholders' equity 37 286 617 25 170 853 -32,5 Total assets 79 092 289 80 407 503 +1,7 Net working capital -14 271 738 -22 670 880 +58,9 Accounts receivable (net) 16 003 201 18 191 112 +13,7 Accounts payable 24 409 180 25 806 890 +5,7 Sales (services offered) 26 501 823 28 803 588 +8,7 Cost of goods sold (services) 20 137 344 17 227 513 -14,4 Net income (loss) (284 941) (3 381 850) +1086,9 Shareholders' equity of OJSC "Corporation Kazakhmys" decreased by 12,115.76 mln tenge or 32.5% relative to the first quarter of 1998, which was caused by a decrease in: - announced authorized capital (based on the balance sheet) - by 2.5 mln; - additional unpaid capital (revaluing of fixed assets) - by 87.46 mln; - undistributed income - by 12,025.80 mln tenge. Book value of one share at the end of reporting period made 5,124.85 tenge, that is 2,466.80 tenge or 32.5% less than it was in the second quarter of last year. Reduction of share's book value is due to shrinking of shareholders' equity of the company with unchanged number of outstanding shares. Long term assets of the company have decreased compared to similar period of last year by 3,716.62 mln tenge or 7.2% because of: - decrease in residual value of fixed assets by 3,281.61 tenge; - incomplete capital construction - by 388.18 mln; - long term financial investments - by 105.01 mln; - increase in residual value of intangible assets by 58.18 mln. At the same time, increase in current assets amounted to 5,031.84 mln tenge (18.3%), including: - accounts receivable increase by 2,472.53 mln; - inventory - by 2,595.39 mln; - cash - by 89.13 mln tenge; with a decrease in: - expenses of future periods - by 115.22 mln; - short term financial investments - by 9.99 mln. As a result, growth of total assets of the company equaled to 1,315.21 mln tenge or 1.2% to the first quarter of last year. "Corporation Kazakhmys" had no long term liabilities of on reporting dates. Current liabilities grew by 13,430.98 mln tenge or 32.1% relative to comparable period of last year, including: - increase in short term credits received made 25,686.85 mln; - short term accounts payable - 1,397.71 mln; - income of future periods - 3,534.38 mln; - decrease in current part of long term loans by 17,187.96 mln. Sales grew by 2,301.77 mln tenge or 8.7% relative to the first quarter of last year, while cost of goods sold fell by 2,909.33 mln tenge or 14.4%. Expenses of the period rose by 323.23 mln (5.6%). However, because of growth in losses from secondary activities by 7,995.74 mln compared to similar period of 1998, OJSC "Corporation Kazakhmys" ended the first half of this year with a loss of 3,381.85 mln tenge. In a new edition the Charter of OJSC "Corporation Kazakhmys" was brought into accord with the law of Kazakhstan "On joint stock companies", dated July 10, 1998. Based on approved edition of the Charter, preferred shares of the company are determined as the shares with minimum amount of dividends set at the emission and without voting rights. Minimum amount of mandatory dividends is 15% of their par value.