UKTMK OJSC (Kazakhstan) for the year 2001 will repay KZT64.0 of dividends per each share

/KASE, May 20, 02/ - UKTMK OJSC (Ust-Kamenogorsk) shares of which are traded in official list of KASE securities under category "A" presented to KASE a copy of protocol of annual general meeting of shareholders that was held on May 07,2002. In accordance with adopted day agenda the shareholders of UKTMK OJSC listened to the Board report and report of Revision commission, approved financial reporting for the year 2001 audited by Deloitte&Touche company (Almaty) and also made following decisions: - approved following order of net income distribution by results of 2001 activity: direct KZT81,256 th. to dividends fund, KZT641,304 th. - to production development fund; - approve a size of dividends for repayment (on common and privileged shares - KASE note) - KZT64.0 per share (taking into account retrained at a source of payment 15% of income tax); official date of dividends payment start should be considered July 07,2002; - Appoint Deloitte & Touche as an auditor of the company in 2002; - appoint a new composition of the Board of Directors in the amount of 5 persons: S. Geller, Shayakhmetov B.М., О. Kaufman, Nefedov P.P., Pismarkin G.N. With the report on results of UKTMK activity for the year 2001 on behalf of the Board the President made speech (Chairman) - Shayakhmetov B.М. In his speech there was noted that despite the hard competition at titanium market that was a consequence of September events in the USA having led to a stoppage of the part of contracts for airplanes construction UKTMK OJSC was able to keep the portfolio of orders but tendency of depression of titanium market is still around therefore it is not excluded that there will be decrease of spongy titanium. According to the report of the Board the realization of production of UKTMK OJSC for the year 2001 totaled KZT9.7bn, income before tax - KZT1.2bn, net income - KZT722.6m, profitability level of marketable goods production - 14.3% (growth with respect to 2000 by 5.3%). Assets of the company grew by KZT712.6m relative to 2000 (up to KZT7.4bn by the end of 2001), shareholders' equity - by KZT676.8m. The company has no any debts on credits, to the budget, energy sector, railroad, and also on salaries. In the year 2001 there was finished a certification of quality management system for compliance with American air space standard AS 9100, effectiveness of which accounted for 14.579 points, which is higher than required level (12.000) recommended by international standards. For reconstruction and technical equipment of the production process in the year 2001 UKTMK OJSC invested KZT299.5m of its own funds, 7 objects were put into operation. In the year 2002 for these purposes it is planned to direct KZT711.2m also from the company own funds. At Satpaevskoe field there was worked ore mine, built and put into operation industrial construction on enrichment of ilmenite concentrate. In the end of 2001 there was received a probe consignment of ilmenite concentrate in the amount of more than 150 tons. Additional geological and exploration works that were conducted by Kazakhstan and Japanese geologists allowed increasing substantially explored reserves of ilmenite. Besides, in the year 2001 at the plant there were worked out optimal technological regimes of slag melting. Productivity of stove for the year was raised by 50%, 21.9 th. tons of titanium slag of the best quality than imported one were received. It is also noted in the report that with putting into exploitation of titanium fields of Kazakhstan and ilmenite concentrates melting division there were created favorable conditions for organization of large-tonnage production of pigment dioxide of titanium. There is being held exploitation of other directions of the plant stabilization: project and construction of second order of ore thermal complex; creation of large-tonnage production of titanium dioxide as one of components of production of painting, cellulose-paper and other goods, technical re-equipment of production. Main types of the company's activity are production and realization of non- ferrous metals (high quality titanium sponge, marketable magnum). [2002-05-20]