Kazakhgold decided to hold IPO in London - expanded version

/INTERFAX-KAZAKHSTAN, Almaty, October 31, 05/ - Kazakhgold, mother company of Kazakhstan Mining and smelting concern Kazakhaltyn, plans to hold IPO at London stock exchange, Kazakhgold company's message informs, spread on Monday. At that, as message notes, in London common shares of Kazakhgold will be floated. "Company Kazakhgold intends to float common shares as global depositary receipt (GDR)", - the message notes. The message does not give floatation terms and volume of shares. Meanwhile, earlier a number of foreign mass media informed, that the company intends to hold listing at London stock exchange and attract at the end of November owing to floatation of 25% shares minimum 100 m. pounds. As per message, forthcoming floatation "will be limited with share offer only to institutional investors and will include new shares offer, and also option to redistribute existing shares". Floatation manager is ING. The message notes, that after inclusion of GDR in listing in London and after execution of corresponding requirements of Kazakhstan legislation, Kazakhgold plans to obtain permission also for admission of its shares and shares of its subsidiary company Kazakhaltyn to trades at Kazakhstan stock exchange. At that, the message notes, Kazakhgold plans to send funds, earned from IPO, "for decrease of borrowed funds and for further investing in improvement and expansion of its mining and processing capacities". "During several last years we realized extensive investment program in production modernization and expansion of production potential of our main gold-mining assets. Funds, borrowed after inclusion of our securities in listing of London stock exchange, will allow us to complete this program and to go on to the stage of essential growth of gold production", - Kanat Asaubayev, the head of Kazakhgold and also of Kazakhaltyn company said, whose words are given in the message. "We are satisfied with execution speed of our preparedness to planned inclusion in listing of London stock exchange and expect offers from big number of investors, showed interest to acquire shares of Kazakhgold", - he noted. Besides, on the threshold of planned flotation the company informed about appointment of four new members of the board of directors of Kazakhgold. They are: Lord Daresbury, director of De Vere Group plc and member of the board of directors of Evraz Group S.A.; David Netherway, who has 30-year experience of work in mining engineer specialty, and also worked on executive posts in several big mining companies, whose shares are quoted in stock exchanges; Toktarkhan Kozhagapanov, scientific and public man of Kazakhstan, former chairman of the board of directors of Kazakhaltyn company; Stephen Oke, professional geologist and former director of international corporate financing department of Standard Bank in London. Members of Kazakhgold company's board of directors also are: Kanat Asaubayev (president), Baurzhan Asaubayev (chief executive director), Aidar Asaubayev (commercial director) and Marusya Asaubayev (human resources director). All of them also work on executive posts in Kazakhaltyn company. As it is known, Kazakhaltyn with production modernization this year completed realization of four big projects. So, this year two gold extractive factories (GEF) have been placed in operation: Aksu with processing productivity 1m. tons of ore a year and Zholymbet with productivity 520 th. tons of ore a year. GEF Aksu plans to output gold as an alloy of Dore in volume 1.5 tons a year, GEF Zholymbet - 1.7 tons. Besides, in August two complexes of gold heap leaching (CHL) were placed in production exploitation in mines Aksu with productivity 500 th. tons of ore a year and Bestobe with productivity 1 m. tons a year. The company started realization of these projects last year. Funds for their financing in the amount over $35 m. Kazakhaltyn borrowed through issue of bonds and owing to credits of Kazakhstan commercial banks. These projects will allow the concern to go from sale of market-small liquid production - floatation concentrate, where gold content is 30-90 gr/tone. Besides, these new technologies allow to process accumulated during many ten years wastes of gold extractive factories (flotation tails), where gold content is 1-1.2 gr/tone, and also to obtain ligature gold as Dore alloy. Besides, Kazakhaltyn intends in 2006 to realize two new projects: to built GEF in Bestobe mine and CHL in Zholymbet mine. Details of these projects the company while does not disclose, to start them is planned in nearest future. With realization of four first above mentioned projects summary volume of issue of gold containing production in 2005 is expected in the volume 2.8 tons, and in 2006 taking into account putting into operation of two more above projects - 8.5 tons. Main assets of Kazakhaltyn are gold-ore fields Aksu, Bestobe and Zholymbet (in Akmolinsk oblasts, on the north of the republic). Reserves of Aksu, Bestobe and Zholymbet by category B and C1 and categories C2 and P1 are estimated in 13 m. ounce and 33 m. ounce of gold correspondingly. In USSR mines Aksu, Bestobe and Zholymbet were biggest in Kazakhstan with maximal annual production volume 244 th. ounce a year. Other two assets of Kazakhaltyn company are two small mining companies, which have contracts to execute works on entrails usage in fields Akzhal and vasilyevskoye, and also production capacities, situated in fields Boldykol and Zhanan, acquired by the company in July 2005. All the above fields are situated not far from Semipalatinsk (city in Eastern-Kazakhstan oblast). MSC Kazakhaltyn JSC was registered in 2001, was created on the base of state enterprise Kazakhaltyn OJSC, acknowledged bankrupt in 1998. [2005-10-31]