Audited financial statements of Zhairemskiy GOK JSC (Kazakhstan) for 2003

/IRBIS, Galina Tsalyuk, October 13, 04/ - Zhairemskiy GOK JSC (Zhairem settlement, Karaganda oblast), whose bonds have been included into Kazakhstan stock exchange's (KASE) official "A" listing category, has presented KASE auditor's report, which was made by Ernst & Young (Almaty) on the company's financial statement for 2003. According to audited financial statement the result of the company's financial and economic activity as of December 31, 2003 is as follows (in th. KZT, unless otherwise indicated): ------------------------------------------------ Indicator 2002 2003 -------------------------- --------- --------- Paid-up authorized capital 640,415 640,415 Shareholders' equity 5,134,084 5,980,100 Total assets 8,331,095 7,979,389 Net working capital -302,839 319,636 Accounts receivable (net) 502,118 153,002 Total liabilities 3,197,011 1,999,289 Attracted credits 1,432,837 671,943 Financial rent - 330,971 Accounts payable 986,306 652,726 Sales volume 5,193,804 4,457,666 Cost of goods sold 2,593,492 2,710,685 Net income 967,496 570,745 ------------------------------------------------ It's been calculated by auditor's data: ------------------------------------------------ Return on sales (ROS), % 50.07 39.19 Return on equity (ROE), % 18.84 9.54 Return on assets (ROA), % 11.61 7.15 ------------------------------------------------ Audit of consolidated financial statement of Zhairemskiy GOK JSC and its daughter companies (hereinafter - the Group) was conducted by Ernst & Young in compliance with international auditing standards. The Group's financial statement, which is made in compliance with Kazakhstan accounting standards, was correspondingly corrected in order to bring it to conformity with international financial reporting standards. The Group's consolidated financial statement for 2003 comprises of financial statements of Zhairemskiy GOK JSC and its daughter companies, in which the company owns 100% of issued shares: Zhalair LLP (Karaganda, field development, extraction, processing and sale of ore and non-ore mineral raw stuff), Kazakhstan ferroalloys LLP (Zhairem settlement, production and sale of manganous concentrates, agglomerate, ferromanganese and ferroalloys). During 2003 the Group liquidated two companies - Zhairem Trade House LLP and Kamkor LLP. In the auditor's opinion the financial statement in all significant aspects for sure reflects financial condition of the Group as of December 31 of 2003, results of its financial and economic activity and cash flow for the year, which ended by the mentioned date, in compliance with international accounting standards. Company's primary activities - search and geological exploration of ore and non-ore fields of mineral raw stuff with calculation of their reserves, development of fields, processing and sale of ore and non-ore mineral raw stuff. [2004-10-13]