Auditor's report on financial statement of Mining and smelting concern Kazakhaltyn JSC (Kazakhstan) for 2004

/IRBIS, Galina Tsalyuk, October 7, 05/ - Mining and smelting concern Kazakhaltyn JSC (Spepnogorsk, hereinafter - company), whose bonds are circulating in Kazakhstan stock exchange's (KASE) official "A" listing category, has presented KASE auditor's report of BDO Kazakhstanaudit LLP (Almaty) on the company's financial statement for 2004, prepared in compliance with International Financial Reporting Standards (IFRS). According to the auditor's data, result of the company's financial and economic activity for 2004 is as follows (in th. KZT, unless otherwise indicated): ---------------------------------------------------------- As of As of Indicator Dec. 31, 03 Dec. 31, 04 -------------------------------- ----------- ----------- Authorized capital (paid) 1,538,711 1,538,711 Shareholders' equity 1,401,056 2,419,965 Total assets 3,408,370 6,703,829 Net working capital 280,507 642,921 Accounts receivable 1,069,490 1,088,421 Total liabilities 2,007,314 4,283,864 Borrowed loans (excluding bonds) 1,490,536 1,543,688 Accounts payable 331,824 354,538 Issued bonds - 1,723,316 Sales volume 1,526,355 1,141,180 Prime cost of sales 1,115,945 937,321 Net income for the year 44,602 5,386 ---------------------------------------------------------- Calculated according to the auditor's data: ---------------------------------------------------------- Return on sales (ROS), % 26.89 17.86 Return on equity (ROE), % 3.18 0.22 Return on assets (ROA), % 1.31 0.08 ---------------------------------------------------------- Audit of the company's financial statement for 2004 was performed by BDO Kazakhstanaudit LLP in compliance with international auditing standards. In the opinion of BDO Kazakhstanaudit LLP, financial statements exactly in all significant aspects reflects financial position of the company as of December 31, 2004, and also results of its activity, cash flow and changes in shareholders equity for the year, ended on the above date, in compliance with IFRS. Company's primary activities - exploration and prospecting works, extraction and processing of gold-containing ore, production of gold-containing goods, manufacture, storage and sale of gold and other precious metals, export of gold and other precious metals and precious stones, jewelry production, operations with refined precious metals and precious stones in physical condition, transportation, organization of scientific and development works and development projects. [2005-10-07]