Results of annual general meeting of JSC "Borly" (Kazakhstan) shareholders

/KASE, Dec.02, 99/ - According to listing requirements JSC "Borly" (Karagandy, official list of securities, category "B") provided Kazakhstan Stock Exchange (KASE) with protocol of shareholders annual general meeting by the results of 1998 with the reports of the Board and Revision commission. At an annual general meeting, which was held on July 31, 1999, shareholders made the following decisions: - to approve the reports of the Board and Revision commission on the results of the company in 1998, and its financial statements for 1998; - not to charge dividends to state owned block of shares for 1998 because of the losses incurred; - to charge dividends to preferred dividends for 1998 at 25% of par value for a total of 3,450 thousand tenge, payments should be made out of the reserve fund of JSC "Borly"; - to make up a list of shareholders entitled to dividends within August- September 1999; dividends should be paid in cash or as the shareholder wishes - to settlement accounts till the end of 1999. Moreover, legal advisor of JSC "Borly" informed the shareholders that state owned block of shares of the company were purchased by "Samsung Deutschland GmbH" in December 1998, which transferred the rights on this block to OJSC "Corporation Kazakhmys". Due to this fact, a decision was made at general meeting of OJSC "Corporation Kazakhmys" shareholders to merge with JSC "Borly" and its affiliated companies, and to convert and pay dividends to preferred shares by OJSC "Corporation Kazakhmys" based on the results of its work beginning 1999. According to the report of the Board of JSC "Borly" (speaker - Sergeev A.V. - manager of JSC "Borly"), the company finished the year 1998 with the following results: - volume of total extractions reached 14,610 thousand cubic meters with 14,096 thousand cubic meters planned or 103.6% (133.0% to 1997); - 6,153 thousand tons of coal has been extracted with 5,865 thousand tons planned, 2,427 thousand tons more than in 1997; - 6,095 thousand tons of coal has been shipped by railroad with 5,545 thousand tons planed or 109.9% (168.7% to 1997); - ash content of the coal has been reduced by 2.3% of planned figure; - commodity output amounted to 6,124.2 thousand tons (2,472.7 mln tenge) with 5,835.9 thousand tons (2,270.8 mln tenge) planed; - commodity output rose 575.8 mln tenge to last year in monetary terms. Growth in production is achieved due to: - carrying out organizational and technical activities to lower coal production expenses; - purchasing inventory; - receiving electricity directly from the power plant; - carrying out environment protection activities; - establishing an workshop to repair mining and transportation equipment; - introducing maintenance services at the mines etc. Number of employees of the company grew 4.5% to last year; workers' efficiency at mining reached 272 tons with 249 planed (109.2% of the plan); average salary is 13.8 thousand tenge with 13.0 planed (107.7% of the plan). Growth in the ratio of work efficiency to average salary (1.5%) was maintained. Profitability equaled 12.5%. Further it is said that work of affiliated companies has normalized after the managing company took the control over the company, also inventory supply has improved, and all barter transactions (shipments are made for 100% prepayment against signed contracts) have been cancelled, wages payable has been reduced by 95% and paid monthly from July 1, 1999. Coal shipments during the reporting period was made mainly to enterprises of OJSC "Corporation Kazakhmys": Jezkazgan, Balkhash power plants, Satpaevskii power plant, Toparskii hydroelectric station, also to power plants of Akmola, Almaty and Karagandy. Coal became competitive on Kazakhstani market.