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Kazakhmys PLC (KAZ)

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Thursday 30 March, 2006

Kazakhmys PLC

Final Results

Kazakhmys PLC
30 March 2006


                                 Kazakhmys PLC

              Audited results for the year ended 31 December 2005

Highlights

• Revenues up 106.2% from $1,259.5 million to $2,597.5 million on the
  strength of rising copper prices and acquisition of MKM

• EBITDA excluding special items for the year increased by 35.6% from
  $791.4 million to $1,073.5 million

• Profit before taxation excluding negative goodwill of $111.3 million
  recognised in 2004, increased by 53.2% to $848.1 million

• EPS based on Underlying Profit increased by 40.9% to $1.31 per share

• Average realised copper price increased from $2,527 per tonne to
  $3,794 per tonne representing a 50.1% rise against an average increase in LME
  copper price of 28.3%

• Expansionary and new project capital expenditure of $190 million,
  representing significant investment for future growth

• Completion of Artemyevskoe underground mine well ahead of schedule and
  within budget

• Construction of new Zhaman-Aybat mine on schedule with completion
  expected in 2006

• Successfully listed on LSE raising net proceeds of $491.2 million in
  October 2005 and entered FTSE 100 index in December 2005

• Inaugural post-Listing dividend proposed of 36.0 US cents per share in
  respect of full year 2005 earnings


Financial highlights for year ended 31 December 2005
------------------------------------------------------------------------------
                                            Year ended   Year ended          
                                           31 December  31 December        %                      
($million, unless stated)                         2005         2004   change     
------------------------------------------------------------------------------
Revenues                                       2,597.5      1,259.5   106.2%     
Earnings:                                                                     
Profit before taxation, finance items and        842.5        578.5    45.6%      
negative goodwill                                                             
Profit before taxation excluding                 848.1        553.7    53.2%      
recognition of negative goodwill                                              
EBITDA excluding special items (1)             1,073.5        791.4    35.6%      
Underlying Profit (3)                            549.8        376.1    46.2%      
EPS:                                                                          
Basic and diluted ($)                             1.29         1.06    21.7%      
Based on Underlying Profit (2) ($)                1.31         0.93    40.9%      
Free Cash Flow (3)                              450.2        405.4(4)  11.1%     
ROCE (3) (%)                                     31.5%        30.2%     4.3%       
Cash cost of copper after by-product            997          616       61.9%     
credits (3) ($/tonne)                                                         
-----------------------------------------------------------------------------

Kazakhmys' Chairman Vladimir Kim commented:

"Following our Listing in October 2005, our maiden set of results demonstrates
the underlying strength of the business with Underlying Profit up 46.2% at
$549.8 million. We are delighted to propose a dividend of 36.0 US cents per
share in respect of full year 2005 earnings. We continue to make progress on our
strategy of building a world-class metals and mining company and creating
shareholder value for the future."


(1)     Reconciliation of EBITDA excluding special items to profit before
        taxation, finance items and negative goodwill is found in note 2(a) to the
        financial information.

(2)     Reconciliation of EPS based on Underlying Profit to Basic and Diluted
        EPS is found in note 6 to the financial information.

(3)     Refer to Glossary on page 46 for definition of these key financial
        indicators.

(4)     Inclusive of expansionary and new project capital expenditure and
        sustaining capital expenditure of $162.2 million.


For further information please contact:

Jinsoo Yang, Head of IR                    Tel:+44 20 8636 7900
Sergei Stephantsov, Deputy Head of IR
Kazakhmys PLC

Andrew Mitchell                            Tel: +44 20 7251 3801
Robin Walker
Zoe Watt
Finsbury Group



CHAIRMAN'S STATEMENT

I am delighted to present Kazakhmys PLC's first set of financial results for the
year ended 31 December 2005. There is no doubt that 2005 will always be a
landmark year in the history of Kazakhmys. We started the year as a long-life,
low-cost mining company based in Kazakhstan, little known outside of the
country. By the year end, we had successfully launched our shares on the London
Stock Exchange raising $491.2 million in net proceeds and, within three months
of Listing and at the first opportunity for inclusion, we entered the FTSE 100
Index - becoming the first CIS business to do so.

As a result of our successful Listing, Kazakhmys is now well placed to pursue
its long term goals. Our strong share price performance illustrates the appetite
from institutional investors for Kazakhmys as the price rose from £5.40 by 43%
to reach £7.74 at the end of December 2005.

We believe that the success of our Listing also reflects the fundamental
attraction of our business and Kazakhstan, with its current political stability,
growing economy and exceptionally rich natural resources.

Less than six months have passed since our Listing and the production of our
first set of financial results as a listed company. In this period, a great deal
has already been achieved. We retained our business focus throughout the Listing
process and in 2005 we have seen production figures at levels comparable with
previous years, which, when combined with high copper and other metal prices,
resulted in strong financial results. In 2005, the Group's revenues for the year
rose to $2,597.5 million, a 106.2% increase on 2004. One of our key measures for
comparing underlying trading performance between years, EBITDA excluding special
items, increased by 35.6% to $1,073.5 million. On the back of these results, the
Board has proposed an inaugural final dividend equivalent to 36.0 US cents per
share in respect of full year earnings in line with our guidance at the time of
the IPO.

Our strategic objective for the future is to maintain and strengthen our
position as a leading copper producer and achieve a world class reputation. We
will combine our strong focus on copper with diversification into other
commodities within our region whilst continuing to maximise operational
efficiencies and deliver organic growth. With virtually no debt and strong cash
flows from our operations, we are well placed to make acquisitions where we find
value-adding opportunities.

On 14 March 2006 we announced that the independent members of the Board of
Kazakhmys PLC had granted permission to me (in a personal capacity) to acquire a
25% interest in ENRC Kazakhstan Holding B.V. ('EKH'), the holding company for
certain assets of the Eurasia Natural Resources group's metals and mining
business, which primarily operates in Kazakhstan, on the basis that the Company
is given the benefit of a call option in respect of my shareholding in EKH. Any
decision to exercise the call option would be taken by an independent committee
of the Board. While I pledged certain shares to facilitate this transaction, I
remain a fully committed long-term shareholder of Kazakhmys PLC.

I continue to remain bound by all of the terms of my employment contract with
Kazakhmys PLC and, in particular, the obligations in that contract not to
compete, directly or indirectly, with Kazakhmys PLC.

As a newly-floated company on the London Stock Exchange, my Board colleagues and
I are firmly committed to delivering high standards of corporate governance. We
believe that the combination of strong management and independent Directors will
play a decisive role in the strategic development of the Group. The quality and
industry knowledge of our Board members will strengthen and complement the
skills and experience of our management team.

Our employees are a fundamental part of the business and we remain committed to
improving the safety environment across our asset portfolio. The Group has
established a Health, Safety & Environment ('HSE') committee chaired by David
Munro, an independent non-executive Director, to monitor the Group's progress in
raising HSE standards and performance. We are also delivering on our commitment
to the broader community within which we operate.

Looking ahead, supply and demand fundamentals suggest continued copper price
strength throughout 2006. We anticipate that the lower production levels in the
first two months of 2006 will not be representative of the expected copper
cathode production for the whole of 2006. We anticipate that 2006 production of
copper cathode will be moderately higher than 2005, driven by a higher level of
production from own concentrate. We will continue to maintain our tight focus on
cost control and seek further growth opportunities.

I would also like to take this opportunity to thank all our employees,
management team and advisors, who contributed to Kazakhmys' success in 2005.
Their dedication and commitment are crucial in delivering these results and
creating further shareholder value in the future.


REVIEW OF OPERATIONS

Summary of operational performance

Over the last year we have seen copper cathode production at levels comparable
with previous years and improving production in zinc and precious metals, which,
when combined with high copper and other metal prices, has resulted in strong
financial results.

The copper market was buoyant in 2005 with average prices on the London Metal
Exchange of $3,681 per tonne compared to $2,868 per tonne in 2004, a rise of
28.3% (Source: Brook Hunt). Exceptional demand from China has continued driving
metal prices up to new higher levels. In 2005, Chinese copper consumption
increased by 7% compared to 2004. We are a fully integrated copper producer and
therefore benefit from any strengthening in the copper price. The main end-user
market for copper in 2005 remained the global construction industry.

In 2005 we completed the construction of the underground mine, Artemyevskoe,
within budget and ahead of schedule so that the Group now comprises twelve
underground and five open pit mines, nine concentrators and two copper smelter/
refineries, a zinc smelting plant, a precious metals refinery and a copper rod
plant, and a fabricated products subsidiary, located in Germany.

At the beginning of 2005, we experienced a more challenging operating
environment, which included temporary mining stoppages at several mines and a
slope failure at the Nikolaevskoe open pit mine in the first quarter of 2005,
which was fully resolved in the second quarter with the mine returning to full
capacity. Furthermore, in accordance with our mining plan, we extracted and
processed lower grade ores at some of our mines so that 2005 actual average
copper content in ore was 21% below 2004 levels. Zinc content in ore was 20%
above 2004 grade reflecting increasing extraction of zinc-rich ores in our
production profile. In addition, productivity in early 2005 was affected by
unusually cold weather in Kazakhstan and some delays in equipment supply.
Nonetheless, by the end of May 2005, the Group had recovered from these
operational challenges and ore output was satisfactory.

Due to anticipated lower copper content in the ores mined, we increased ore
extraction volumes by 11.5% up compared to 2004, procuring an additional 268kt
of concentrate from third parties and producing around 10kt of copper cathode
through tolling arrangements.

In spite of the operating challenges, we were able to sustain our production at
around 400kt of copper cathode and increase zinc metal production to 51kt,
demonstrating that the Group can consistently produce large quantities of
copper, maintaining our position as one of the world's leading copper producers.

Copper

For the year ended 31 December 2005, we produced 397kt of copper cathode,
processing 1,985kt of copper concentrate. Included in the 397kt of copper
cathode produced was 10kt of copper produced through tolling arrangements.

The Zhezkazgan Complex produced 235kt of copper cathode, which produced 9kt of
copper rod.

The Balkhash Complex produced 162kt of copper cathode, of which 10kt were
produced under tolling arrangements.

At the East Region we produced 592kt of copper concentrate and 202kt of zinc
concentrate in 2005 with additional 29kt processed for us by third parties.

As part of our maintenance programme, we carried out planned shutdowns at the
Zhezkazgan copper smelter in the third quarter of 2005 and at the Balkhash
copper smelter in the fourth quarter. These shutdowns resulted in slightly lower
production volumes in the corresponding quarters, but did not significantly
affect the overall production performance for the year.

During 2005, the Group produced 1,416kt of copper concentrate, of which 44kt
were processed by a third party and a further 268kt of copper concentrate were
purchased from third parties to better charge the Group's refining capacity.

At present, the Group has insufficient concentrator capacity to handle the ore
from the recently constructed Artemyevskoe mine so this concentrate is currently
being processed by third parties. To address this issue, we are upgrading
operating capacity at a number of our concentrators. The annual production
capacity of the Karagaily concentrator is being upgraded from 1,000kt to
1,500kt, and the Nikolaevsky concentrator from 2,000kt to 2,500kt due to grinder
reconstruction.

The work began in 2005 and once the Nikolaevsky upgrade is completed, all of the
concentrate from the Artemyevskoe mine will be processed internally.

As stated at the time of our Listing, we are currently developing several
organic growth projects. The majority of these projects are anticipated to come
on line in the short to medium term and include both new sites and continuations
of existing mines. New site projects include Aktogay, the Group's primary
project, where feasibility studies continue to be undertaken and Zhaman-Aybat,
which is expected to enter production during 2006. Recently completed projects
include Stepnoy, which is currently ramping up to full capacity and
Artemyevskoe, which was completed in 2005 ahead of schedule and within budget
and is preparing to ramp up to full capacity in 2007.

Zinc

We continue to make progress with the implementation of our growth plans in the
zinc business, although our zinc smelter ramp-up is progressing at a slower rate
than originally anticipated. In 2005, we increased the output of zinc metal in
concentrate to 82kt from 66kt in 2004. Production of zinc metal increased from
18kt in 2004 to 51kt in 2005.

Over the course of 2006 we will continue fine-tuning our operating performance
at the Balkhash zinc plant complex. The zinc rich concentrate from the recently
completed Artemyevskoye mine should contribute to improving the quality of
concentrate and ensure zinc metal production volumes are more consistent in
2006.

Precious metals

Our precious metals refinery, located in the Balkhash region, recovers gold and
silver from the slimes from all of the Group's operations. We also treat slimes
from third parties on a tolling basis.

Our precious metals output rose during the year as the Abyz and Artemyevskoe
mines started production of their silver- and gold-rich ores. In 2005 the Group
produced 21 million ounces of silver, of which 90 thousand ounces of silver were
produced on a tolling basis. We produced 146 thousand ounces of gold of which 45
thousand ounces were produced on a tolling basis.

MKM production

MKM is a fabricating subsidiary of the Group, located in Germany. MKM produces
and sells copper and copper alloy semi-finished products predominantly in the
European Union for various applications. MKM is organised into three business
units: wire products, tubes and bars, flat products (strips, plates and sheets).

In 2005, MKM's total production was 219kt. The wire products business unit
produced 120kt of wire products. Total tubes and bars production was 40kt in
2005, of which tubes production was 19kt and bars production was 21kt. The flat
products business unit produced 59kt of flat products, of which 5kt were
pre-rolled flats, 12kt were sheets, and 42kt were strips.

MKM invested $13.5 million in asset optimisation and production expansion in the
last year, with the main emphasis on the expansion of the tube production
capacity from 19kt to 28kt. Production bottlenecks were eliminated with an
investment of $7.2 million for new drawing lines as well as upgrades of existing
equipment.

In 2005, MKM's capabilities to produce de-oxidised copper were improved by
investment in related equipment. As a result, an extended product range can be
produced starting in 2006, allowing MKM to target additional market segments.

During 2005, MKM was also able to achieve improvement in the utilisation of the
ContiM(R) equipment. MKM operates some of the most advanced ContiM(R) equipment
worldwide. In 2005, production volumes for this equipment were increased by more
than 200%, primarily driven by good market demand for wire products.

Other production

We also generate power for the needs of our business. In Kazakhstan, the Group
owns and operates a power plant located at Karaganda, a combined heat and power
and a power plant located at Zhezkazgan and a heat and power plant in Balkhash.
In 2005, the Group generated 6,441 MJ of electricity and 4,013 KHcal of heating
power, most of which was used by our operations.


FINANCIAL REVIEW

Summary of the year

Revenues for the year amounted to $2,597.5 million, a 106.2% increase from 2004.
Profit before taxation, finance items and negative goodwill rose by 45.6% to
$842.5 million and our key performance measure for earnings, EBITDA excluding
special items, was $1,073.5 million, a 35.6% increase compared to 2004. The
improved earnings were attributable to rising commodity prices during 2005 and
the acquisition of MKM on 15 December 2004.

These results translated to an increased profit attributable to equity
shareholders of $538.8 million, compared to $429.8 million in the prior year, a
rise of 25.4%. As negative goodwill of $111.3 million arose during the prior
year, a more informed measure of the Group's financial performance on a post-tax
and minority interest level is Underlying Profit, which removes special items.
An increase of 46.2% to $549.8 million was reported by this performance measure.

Basic and diluted EPS increased by 21.7% to $1.29 per share. EPS based on
Underlying Profit, was $1.31 per share compared to $0.93 per share reported in
2004, an improvement of 40.9%.

The Directors recommend a final dividend of 36.0 US cents per share. Dividend
cover for the final dividend is over three times, and provides a solid platform
to ensure a stable dividend flow in future years, subject to the performance of
the business and continued growth in earnings.

The following review of the Group's financial performance analyses the two
business segments separately given their distinct nature.

Revenues

Kazakh Mining

Revenues for Kazakh Mining increased from $1,259.5 million to $1,740.9 million,
a 38.2% improvement against the prior year. The major contribution to revenues
within the Kazakh Mining business remained copper cathodes, although there were
strong performances from other commodities, particularly zinc metal and silver.

Revenues from the sale of copper cathodes were $1,377.2 million, or 79.1% of the
total revenues of the Kazakh Mining business. Although production volumes,
excluding tolling, were 5% lower than the previous year, sales volumes of copper
cathodes were flat as 48kt of 2004 production was utilised in the manufacture of
copper rods in that year, compared to 8kt during 2005. The increase in revenues
of 51.1% between years was primarily driven by an improvement in the average
realised copper price to $3,794 per tonne compared to $2,527 per tonne for 2004,
an increase of 50.1%.

As the commissioning of the Balkhash zinc smelter continued to ramp-up, zinc
metal production increased by 183%, which contributed to an 11-fold rise in zinc
metal revenues. Average realised zinc prices increased by 34.7%, which also had
a positive impact on revenues. However, zinc metal sales volumes were slightly
disappointing as the ramp-up of the zinc smelter is taking longer than
anticipated. In addition, production was lower than expected due to the use of
low grade ores as a consequence of technical problems experienced in the first
half of the year.

Zinc concentrate sales volumes decreased by 3%, although revenues increased by
61.8% to $15.0 million as a result of higher zinc prices enjoyed during 2005.

Silver sales volumes were similar to production volumes. Revenues improved by
27.8% compared to the prior year assisted by an increase in production volumes
as a result of the commencement of operations at the Abyz mine, which has a
relatively higher grade of silver, and a rise in realised silver prices of 11.6%
compared to 2004.

Gold sales volumes from own ore were 17% less than production volumes due to the
internal use of gold within the jewellery factory. There was a 162.1%
improvement in gold revenues from own production due to the commencement of
operations at the Abyz mine and higher realised gold prices of 30.5% compared to
the prior year. Gold tolling revenues were $3.1 million compared to $1.2 million
in the prior year due to higher volumes.

Copper rod revenues were down by 80.3% following an 83% decrease in sales
volumes. The fall in copper rod sales followed a combination of weak customer
demand and the decreased amount of refined copper being allocated to copper rod
production in order to fulfil export contracts for copper cathodes.

Other revenues of $66.4 million compared to $59.0 million in the prior year, and
related to the sale of surplus electricity, heating and coal, as well as the
sales of other minor by-products, such as lead and rhenium.

MKM

For the year ended 31 December 2005, MKM reported revenues of $856.6 million, an
increase of over 75% from the prior year's revenue figure of $486.9 million. The
two key factors behind this growth were increased sales volumes, up by over 70%
compared to the prior year, and the increase in copper prices during the year.

The main component within MKM's revenues is the input value of copper,
accounting for approximately 85% of sales price. Contractual arrangements with
customers ensure the input price of copper cathodes is passed on in full. With
the increase in the purchased component of copper increasing by 29% in value
terms compared to the prior year, this contributed to approximately $140 million
of the total growth in revenues.

There were strong performances in the sales of wire rods, up eight-fold, drawn
wire, up by 10%, and strips, up by 12%, compared to the prior year. As wire
rods, drawn wire and strips account for 40%, 14% and 19%, respectively, of total
sales by volume, these were the main contributors to the overall growth in sales
volumes.

Earnings

Profit before taxation, finance items and negative goodwill increased from
$578.5 million to $842.5 million, an increase of 45.6%, split between $820.8
million for the Kazakh Mining business and $21.7 million for MKM. Depreciation,
depletion and amortisation amounted to $219.6 million in 2005, an increase of
40.2% compared to $156.7 million in 2004, as a result of increased capital
expenditure and the acquisition of MKM.

Consistent with other international mining companies, EBITDA excluding special
items has been chosen as the key measure in assessing the underlying trading
performance of the Group between the current and prior years. This performance
measure removes depreciation, depletion, amortisation and non-recurring or
variable items in nature which do not impact the underlying trading performance
of the business. These latter items were particularly significant in the prior
year.

During 2004, these non-recurring or variable items related to the loss on
disposal of fixed assets of $25.9 million and the write off of fixed assets of
$30.3 million, which compared to $4.6 million and $6.8 million, respectively,
for these categories in 2005. Overall, the margin at the level of EBITDA before
special items decreased from 62.8% to 41.3%, primarily as a result of the
acquisition of MKM. For 2005, MKM reported a margin based on EBITDA excluding
special items of 4.6% compared to a margin of 59.4% for the Kazakh Mining
business.

Kazakh Mining

The margin at the level of EBITDA excluding special items was slightly depressed
from 62.8% in 2004 to 59.4% in 2005. Although average realised copper prices
increased by 50.1% from 2004 to 2005, the reduction in mined ore grade from
1.30% to 1.03% and the resulting increased proportion of copper cathodes
produced from purchased concentrate (less than 1% of total copper cathode
production in 2004 to 12.4% of total copper cathode production in 2005,
excluding tolling), acted to offset the impact of rising copper prices on the
profit margin.

Purchases of copper concentrate increased in monetary terms from around $32
million in 2004 to $166 million in 2005. This significant increase reflects the
higher volumes of purchased concentrate amounting to 268kt during 2005 compared
to 14kt in the prior year. The impact of rising copper prices also increased the
cost of purchased concentrate compared to the prior year.

Costs associated with the transportation of purchased concentrate also increased
from the prior year by approximately $9.5 million or 77%, which was attributable
to the increased volumes of purchased concentrate.

Other factors which contributed to the lower profit margin included an increase
in fuel costs of 50%, which accounted for 15% of cost of sales, and an increase
of approximately 27% in wages and salaries, which accounted for around 27% of
total operating costs, excluding depreciation, depletion, amortisation and
special items.

The captive power stations in the Kazakh Mining business produce sufficient
electricity and heat for the business' own requirements. However, rising diesel
prices adversely impact running costs for plant and equipment operating in the
mines.

Wages and salaries increased by approximately $41 million or 27% from 2004 to
2005 due to the new Abyz and Artemyevskoe mines entering production, a wage
increase agreed in November 2005 in Kazakhstan and the inception of a head
office in London. Competition amongst mining companies, together with a strongly
performing economy in Kazakhstan, contributed to wage pressures.

Legal and professional fees increased over three-fold to approximately $24
million, largely as a result of the Listing, and additional professional fees
incurred in the London head office. Selling and distribution costs were $7.6
million or 42% higher as a greater proportion of the Group's sales were made to
European customers which involve higher transportation costs.

Depreciation and depletion increased by 26.4% from $155.6 million to $196.7
million. Of the increase, approximately $30 million arose from the Balkhash zinc
smelter, with the remainder arising from higher levels of capital expenditure
during 2005.

MKM

MKM's cost of sales includes the purchase price of copper cathode, and has
therefore risen at approximately the same rate as the increase in revenues.
Gross profit margins are therefore largely unaffected by increases in copper
prices.

Despite the growth in sales volumes, the change in product mix, towards lower
margin wire rods, adversely impacted margins during 2005. Margins also came
under pressure through product substitution in certain key market segments.

Within profit before taxation and finance items of $21.7 million, a contribution
of approximately $25 million arose from an increased stock valuation as a result
of rising copper prices. This favourable impact on earnings did not translate
into operating cash flows. If copper prices decline in future, this will
conversely have a negative impact on earnings.

Depreciation remained in line with 2004 levels at around $21 million.

Net financing items

Net financing income was $5.6 million during 2005, which contrasted with the net
financing cost of $24.9 million that arose in the prior year.

A foreign exchange loss of $11.0 million is included within net financing
income, compared to a loss of $29.5 million that was recognised during 2004. The
foreign exchange loss mostly arose within Kazakhmys LLC as a result of the loss
arising on the Euro denominated loan extended by Kazakhmys LLC to MKM due to the
strengthening of the Kazakhstan Tenge against the Euro. This loss was partly
offset by the gains arising on the US dollar denominated deposits as a result of
the strengthening of the US dollar against the Kazakhstan Tenge.

Net financing income, other than foreign exchange losses, included a finance
cost of $8.8 million which related to interest payable on the short term credit
lines within Kazakhmys LLC and the $100.0 million loan to Citibank which was
repaid in November 2005. Unwinding of long term provisions and employee benefits
also gave rise to an interest charge of $5.2 million.

Finance income primarily relates to interest earned from fixed term US dollar
and Kazakhstan Tenge denominated deposits placed with banks in Kazakhstan, and
the proceeds raised from the Listing which remained in the UK until the year
end.

Income tax

The effective tax rate for the year was 35.1% compared to a rate of 33.6% in the
prior year. The rate was split between a current tax rate of 35.4% and a
deferred tax credit of 0.3%. Income tax in absolute terms increased by $73.5
million or approximately 33%, primarily due to higher earnings within the Kazakh
Mining business compared to 2004.

The effective tax rate increased since the prior year principally due to the
recognition of non-taxable negative goodwill arising during 2004 on the
acquisition of MKM, and additional levels of excess profits tax being accrued
during 2005 as a result of higher profits within certain profitable subsoil
contracts. Excess profits tax added 3.8% to the effective tax rate during 2005
which compared to an incremental 2.1% during 2004.

The higher German effective tax rate for MKM was reduced during 2005 from 38.13%
to 35.98% which marginally reduced the overall effective rate by 0.3% as
deferred tax balances within MKM were recalculated using the lower rate.

Withholding taxes of $11.9 million were accrued during 2005 on profits arising
within Kazakhmys LLC which either have been or will be remitted to the UK for
dividend purposes. These withholding taxes added an additional 1.4% to the
effective tax rate.

The effective tax rate is expected to remain at levels in excess of the
statutory Kazakhstan tax rate of 30% due to excess profits taxes arising on
profitable subsoil contracts at the current time of high commodity prices.

Minority interests

Upon completion of the share exchange agreement with Kazakhmys LLC's
shareholders, the Company's interest in Kazakhmys LLC was 97.40%. As the
financial statements have adopted a pooling of interests method of accounting,
this interest was used in determining the Company's share of Kazakhmys LLC's
earnings for all periods presented. On 26 September 2005, the Company issued
additional shares in consideration for the transfer to it of further units in
Kazakhmys LLC which resulted in the Company's interest in Kazakhmys LLC
increasing to 98.68%, this being the Company's interest in Kazakhmys LLC at the
year end date.

Profit for the year and Underlying Profit

Profit for the year attributable to equity shareholders increased from $429.8
million to $538.8 million, an increase of 25.4%. Due to the recognition of
negative goodwill of $111.3 million during 2004, together with the presence of
several non-recurring or variable non-trading items during that year, amounting
to $56.2 million (before tax and minority interests effects), Underlying Profit
is seen as a more informed measure of the performance of the business at a
post-tax and minority interest level.

Underlying Profit removes non-recurring or variable non-trading items from
attributable profit for the year, and their resulting tax and minority interest
impacts. It provides a more consistent basis for comparing the underlying
trading performance of the Group between 2004 and 2005.

The increase of 46.2% in Underlying Profits principally reflects the favourable
impact of rising copper prices on earnings.

Earnings per share

Basic EPS based on attributable profit for the year increased from $1.06 per
share to $1.29 per share, despite the recognition of negative goodwill during
2004 of $111.3 million, which increased last year's Basic EPS by $0.28 per
share. The increase in the weighted average number of shares in issue arises
mainly from the 58.4 million newly issued shares at the time of Listing. There
are no differences between Basic and Diluted EPS.

Assuming no changes in capital structure during 2006, the weighted average
number of shares in issue will increase from 418.1 million shares during 2005 to
467.5 million shares during 2006 an increase of 11.8%. Without a corresponding
increase in earnings during 2006, the increased weighted average number of
shares in issue will lower the EPS figure in 2006.

EPS based on Underlying Profit increased from $0.93 per share to $1.31 per
share, a 40.9% improvement, principally reflecting the impact of higher
commodity prices.

Dividends

The Board has proposed a final dividend equivalent to 36.0 US cents per share in
respect of the year ended 31 December 2005.

The interim dividend paid on 5 July 2005 of $6.81 per ordinary share of £5 each
(or equivalent to 27.0 US cents per ordinary share of 20 pence each after the
share split which took place on 23 September 2005) at a total cost of $110.0
million was paid out of profits available for distribution as shown in the
accounts of the Company for the year ended 31 December 2004 but was charged
against retained earnings during the year ended 31 December 2005 in accordance
with IFRS.

The Company intends to adopt a dividend policy which will take into account the
profitability of the business and underlying growth in earnings of the Group,
but taking cognisance of the cash flows required to invest in its capital
expenditure programme. The Directors will also ensure dividend cover is
prudently maintained. Interim and final dividends will be paid in the
approximate proportions of one-third and two-thirds of the total annual
dividend, respectively.

Cash flows

Summary of the year

During the year, the net liquid funds position of the Group strengthened from
$231.9 million to $829.4 million, an increase of almost $600 million. This
movement was mainly attributable to net proceeds of $491.2 million raised from
the Listing and the conversion of higher earnings into operating cash flows.

Other key cash flows during the year were income tax payments of $333.3 million,
capital expenditure of $365.4 million, net repayment of borrowings of $54.7
million and payment of dividends of $164.8 million.

Free Cash Flow, a key performance indicator of the Group's ability to translate
earnings into cash flow available for dividends, and investment and financing
purposes, was $450.2 million, compared to $405.4 million in 2004. The Free Cash
Flow in 2005 was stated after deducting sustaining capital expenditure of $175.4
million (including expenditure on investment in intangible assets and mine
development costs), out of the total capital expenditure of $365.4 million. In
respect of 2004, total capital expenditure of $162.2 million has been included
within Free Cash Flow; this has not been separated between sustaining capital
expenditure and expansionary and new project capital expenditure.

The Group's ability to generate continued positive Free Cash Flows provides
funds for additional investment in expanding the Group's existing operations and
capacities, as well as providing flexibility to respond to any opportunistic
acquisitions.

Operating cash flows

Operating cash flows increased by 10.2% from $567.6 million in 2004 to $625.6
million in 2005.

During the year, the Kazakh Mining business benefited from its payment terms
with customers whereby, as a minimum, over 90% of settlements for copper cathode
delivery are paid prior to transfer of title. All settlements are received in
advance of transfer of title for zinc metal, silver and gold sales. These terms
ensured rapid conversion of increased revenues into cash available for the
business. Tight controls over working capital ensured there was no material
change in the working capital requirements for the Kazakh Mining business.

As MKM must pay in advance for its supply of copper cathodes, working capital
requirements increased substantially in light of rising copper prices. The
increase in MKM's working capital was the main factor contributing to an overall
increase in the working capital of the Group of around $100 million.

If the two businesses are taken together, cash flows from operations before
income tax and interest increased by 31.8%, compared to an increase in EBITDA
excluding special items of 35.6%. The lower increase in cash flows from
operations compared to the equivalent of the cash profits of the Group (being
EBITDA excluding special items) was primarily a result of the adverse working
capital movements within MKM as noted above.

Income tax payments more than doubled from $164.2 million to $333.3 million,
principally reflecting improved earnings during 2005, and correspondingly higher
tax charges. Tax payments in 2005 included around $80 million in respect of tax
arising in prior periods.

The major component of interest paid related to the interest incurred on the
$100.0 million loan payable to Citibank which amounted to $4.7 million.

Investing and financing cash flows

Of the total interest income of $17.3 million, $4.4 million was received in the
UK, largely attributable to the proceeds received on Listing, with the balance
arising within Kazakhmys LLC from its funds on deposit.

Capital expenditure on mine developments cost, mining licences and property,
plant and equipment amounted to $365.4 million, compared to $162.2 million in
the prior year. Major items of capital expenditure were the development of the
Zhaman-Aybat, Artemyevskoe and Abyz mines, as well as the construction of the
sulphuric acid plant at the Balkhash Complex. Sustaining capital expenditure and
investment in mine development costs were around $144 million and $26 million,
respectively. Proceeds from the disposal of property, plant and equipment were
under $10 million as redundant assets are normally sold for scrap or negligible
value.

Listing proceeds, net of expenses, amounted to $491.2 million. During the year,
dividends of $164.8 million were paid by the Group, representing the 2004
interim dividend of $52.2 million payable by Kazakhmys LLC in February 2005 and
the 2005 interim dividend of $110.0 million payable by the Company in July 2005
(which was largely funded by the 2004 final dividend paid by Kazakhmys LLC).

The major net cash outflow in respect of borrowings was the repayment of the
$100.0 million Citibank loan in November 2005. There was a cash inflow of $7.2
million relating to an increase in short term borrowings within MKM and $38.8
million within Kazakhmys LLC.

To maximise returns, the Group invested surplus funds in current investments
with varying maturities of between one and twelve months. The cash outflow from
investing in these deposits was $98.8 million compared to a cash inflow of $3.6
million arising from liquidation of these funds in the prior year.

Balance sheet

Summary of movements

Shareholders' funds as at 31 December 2005 stood at $2,600 million, an increase
of $833.2 million compared to the balance as at 31 December 2004. The increase
was primarily due to net proceeds received on the Listing of $491.2 million,
retained earnings for the year of $538.8 million, offset by currency translation
differences of $70.4 million and dividends payable of $160.8 million.

The currency translation differences largely arose in respect of Kazakhmys LLC
due to the weakening of the Kazakhstan Tenge against the US dollar from a rate
of 129.96 KZT/$ as at 1 January 2005 to 133.77 KZT/$ as at 31 December 2005.
There was also a depreciation of the Euro against the US dollar in respect of
MKM which contributed to the currency translation difference.

Non-current assets and liabilities

Property, plant and equipment as at 31 December 2005 was slightly higher
compared to the prior year balance, after capital expenditure of $333.7 million,
was offset by depreciation of $216.8 million and currency translation
differences of $67.9 million.

Mine stripping costs increased substantially from $16.9 million to $41.8 million
due to the stripping work at Nurkazgan and Artemyevskoe mines.

The liability for employee benefits remained at a similar level to the prior
year. The main component of the liability relates to unfunded post retirement
benefits of $23.1 million for employees in Kazakhmys LLC. It also includes a
liability of $5.6 million relating to part-time contracts for older employees at
MKM that have been collectively agreed with the employees' trade union.

The Group has no pension obligations, other than a contingency in respect of the
payment obligations of the Kazakhmys LLC-sponsored pension fund, termed the
'Accumulating Pensions Funds of Kazakhmys LLC Corporation' (the 'Fund'). Certain
of Kazakhmys LLC's employees and former employees are beneficiaries. The Fund's
rules set out that the payment obligations to fund beneficiaries are based on
the nominal value of contributions made by the beneficiaries, indexed in
accordance with a formula set out in the Fund's rules. In the event that the
assets of the Fund are insufficient to cover the payment obligations to the
beneficiaries, the voting shareholders of the Fund (including Kazakhmys LLC) are
jointly liable for the shortfall.

The last valuation as at 31 December 2005 showed that the payment obligations of
the Fund were $102.4 million, and the market value of its assets was $119.6
million. No deficit has arisen within the Fund at any balance sheet date since
its inception.

Provisions of $45.9 million were in line with the prior year. The most
significant provision of $24.5 million relates to site restoration obligations
which are determined with reference to the requirements of legislation in
Kazakhstan.

Working capital

Working capital, including inventories, trade and other receivables, prepayments
and other current assets, restricted cash and trade and other payables,
increased by approximately $100 million. Although working capital was tightly
controlled within the Kazakh Mining business, the effects of higher copper
prices caused inventories, trade receivables and other debtors within MKM to
increase from $134.0 million to $220.0 million, an increase of $86.0 million. If
copper prices decline during the course of 2006, working capital within MKM
should move back towards levels seen as at 31 December 2004.

Net liquid funds

Net liquid funds as at 31 December 2005 comprised cash and cash equivalents of
$522.0 million, current investments of $356.5 million and borrowings of $49.1
million.

Cash and cash equivalents include $496.6 million of fixed rate deposits with a
maturity of less than three months. Of the total cash and cash equivalents
balance, the Company held $491.2 million and $15.1 million as fixed rate
deposits and cash, respectively, in the UK. Cash held by MKM was $2.6 million,
and the balance of cash and cash equivalents of $13.1 million was held by
Kazakhmys LLC in Kazakhstan.

Current investments include fixed rate deposits of $245.3 million and $111.2
million held in US dollars and Kazakhstan Tenge, respectively, within Kazakhmys
LLC. The maturities of the deposits held in Kazakhmys LLC are of varying periods
up to twelve months.

Borrowings decreased from $102.1 million to $49.1 million. During the year, the
loan of $100.0 million payable to Citibank was voluntarily repaid in light of
the Group's strong cash position, leaving short term credit facilities for
Kazakhmys LLC and MKM of $41.6 million and $7.3 million, respectively. The
Kazakhmys LLC facilities are used to fund its working capital depending on cash
flow requirements and the maturity profile of bank deposits.

Capital employed

Capital employed increased in the year to $2,675 million as at 31 December 2005
from $1,916 million at the prior year end, primarily due to the proceeds raised
from the Listing and retained earnings for the year. ROCE has shown an
improvement from 30.2% to 31.5% partly due to a full year's contribution from
MKM, but primarily due to the improved earnings.

If the capital employed attributable to MKM was excluded from the Group capital
employed figure as at 31 December 2004, then ROCE would have been in the region
of 33%. To achieve a like-for-like comparison, if the proceeds raised from the
Listing are excluded from capital employed as at 31 December 2005, then ROCE
would have been around 39%.

The minority interests balance decreased from $47.2 million to $26.3 million as
a result of the reduction in minority interest arising from the transaction with
Kinton Trade Limited, as explained in note 8 to the financial information, which
was partly offset by increased retained earnings within Kazakhmys LLC.


FINANCIAL HIGHLIGHTS

----------------------------------------------------------------------------
                                                     Year ended   Year ended
                                                    31 December  31 December
                                                           2005         2004
                                                      $'million    $'million
----------------------------------------------------------------------------
Group                                                                      
Revenues                                               2,597.5      1,259.5    
Profit before taxation, finance items and negative       842.5        578.5      
goodwill                                                                   
EBITDA excluding special items                         1,073.5        791.4      
EBITDA excluding special items margin (%)                 41.3%        62.8%      
Net finance items and negative goodwill                    5.6         86.5       
Profit before taxation                                   848.1        665.0      
Effective tax rate (%)                                    35.1%        33.6%      
Profit for the year                                      550.8        441.3      
Equity minority interests (%)                              2.2%         2.6%       
Profit attributable to equity shareholders               538.8        429.8      
Underlying Profit                                        549.8        376.1      
EPS:                                                                       
Basic and Diluted ($)                                      1.29         1.06       
EPS based on Underlying Profit ($)                         1.31         0.93       
Post-Listing dividend per share ($)                        0.36          n/a        
Return on Capital Employed (%)                            31.5%        30.2%      
Free Cash Flow                                           450.2        405.4      
Net liquid funds                                         829.4        231.9      
----------------------------------------------------------------------------


----------------------------------------------------------------------------
                                                     Year ended   Year ended
                                                    31 December  31 December
                                                           2005         2004
                                                      $'million    $'million
----------------------------------------------------------------------------
Kazakh Mining                                                              
Revenues                                                1,740.9      1,259.5    
Profit before taxation, finance items and negative        820.8        578.5      
goodwill                                                                   
EBITDA excluding special items                          1,034.4        791.4      
EBITDA excluding special items margin (%)                  59.4%        62.8%      
Net liquid funds                                          834.3        170.6      
Cash cost of copper after by-product revenues ($/tonne)   997.2        615.5      
Average $/KZT exchange rate                               132.88       135.95     
MKM                                                                        
Revenues                                                  856.6            -          
Profit before taxation, finance items and negative         21.7            -          
goodwill                                                                   
EBITDA excluding special items                             39.1            -          
EBITDA excluding special items margin (%)                   4.6%           -          
Net liquid (debt)/funds                                    (4.9)        61.4       
Average $/Euro exchange rate                                0.80         0.80       
----------------------------------------------------------------------------



CONSOLIDATED INCOME STATEMENT

--------------------------------------------------------------------------------
Year ended 31 December
                               Notes                            2005       2004
                                                           $'million  $'million
--------------------------------------------------------------------------------
Revenues                           2                         2,597.5    1,259.5
Cost of sales                                               (1,506.6)    (505.4)
--------------------------------------------------------------------------------
Gross profit                                                 1,090.9      754.1
--------------------------------------------------------------------------------
Selling and distribution expenses                              (55.5)     (18.0)
Administrative expenses                                       (185.3)    (109.4)
Other operating income                                          39.0       48.7
Other operating expenses                                       (34.8)     (55.0)
Write-offs and impairment          3                           (11.8)     (41.9)
losses
--------------------------------------------------------------------------------
Profit before taxation, finance items and negative                                              
goodwill                                                       842.5      578.5
Finance income                     4                            87.4       70.3
Finance costs                      4                           (81.8)     (95.1)
Recognition of negative goodwill                                   -      111.3
--------------------------------------------------------------------------------
Profit before taxation                                         848.1      665.0
Income tax expense                 5                          (297.3)    (223.7)
--------------------------------------------------------------------------------
Profit for the year                                            550.8      441.3
--------------------------------------------------------------------------------
Attributable to:
Equity shareholders of the parent                              538.8      429.8
Minority interests                                              12.0       11.5
--------------------------------------------------------------------------------
                                                               550.8      441.3
--------------------------------------------------------------------------------
Earnings per share attributable to equity
shareholders of the parent:
Basic and diluted                  6                           $1.29      $1.06
EPS based on Underlying Profit     6                           $1.31      $0.93





CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
As at 31 December
                                        Notes                   2005       2004
                                                           $'million  $'million
Assets
Non-current assets
Intangible assets                                               21.6       19.3
Tangible assets                                              1,743.1    1,676.9
  Property, plant and equipment                              1,701.3    1,660.0
  Mining stripping costs                                        41.8       16.9
Investments                                                      5.8        5.3
--------------------------------------------------------------------------------
                                                             1,770.5    1,701.5
--------------------------------------------------------------------------------
Current assets
Inventories                                                    377.7      289.1
Trade and other receivables                                    210.8      125.4
Prepayments and other current assets                            41.5       71.4
Investments                                                    356.5      259.9
Restricted cash                                                  1.0       30.7
Cash and cash equivalents                                      522.0       74.1
--------------------------------------------------------------------------------
                                                             1,509.5      850.6
--------------------------------------------------------------------------------
TOTAL ASSETS                                                 3,280.0    2,552.1
--------------------------------------------------------------------------------

Equity and liabilities
Share capital                                 8                173.3      151.1
Share premium                                                  503.4          -
Foreign currency translation reserve                           147.9      218.3
Reserve fund                                                     9.4       14.8
Retained earnings                                            1,765.8    1,382.4
--------------------------------------------------------------------------------
Equity attributable to shareholders of                       2,599.8    1,766.6
the parent
Minority interests                                              26.3       47.2
--------------------------------------------------------------------------------
Total equity                                                 2,626.1    1,813.8
--------------------------------------------------------------------------------
Non-current liabilities
Borrowings                                                         -       78.0
Employee benefits                                               28.7       28.4
Provisions                                                      44.5       43.5
Deferred tax liability                                         260.9      269.5
--------------------------------------------------------------------------------
                                                               334.1      419.4
Current liabilities
Trade and other payables                                       158.7      144.6
Borrowings                                                      49.0       24.1
Provisions                                                       1.4        0.3
Dividend payable                                                 3.1        0.5
Income tax payable                                             107.6      149.4
--------------------------------------------------------------------------------
                                                               319.8      318.9
--------------------------------------------------------------------------------
Total liabilities                                              653.9      738.3
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES                                 3,280.0    2,552.1
--------------------------------------------------------------------------------






CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
Year ended 31 December
                                         Notes                 2005        2004
                                                          $'million   $'million
--------------------------------------------------------------------------------
Net cash inflow from operating activities    9                625.6       567.6

Cash flows from investing activities
Interest received                                              17.3        13.4
Proceeds from disposal of property, plant                       7.3         4.1
and equipment
Purchase of property, plant and equipment                    (333.7)     (152.8)
Mine stripping costs                                          (26.5)       (5.2)
Purchase of intangible assets                                  (5.2)       (4.1)
Licence payments for subsoil contracts                         (0.9)       (0.4)
Proceeds from disposal of non-current                           0.2           -
investments
Acquisition of non-current investments                         (3.0)          -
Proceeds from disposal of available for                         0.5        87.0
sale securities
Acquisition of available for sale securities                   (1.0)       (1.2)
Investment in short term bank deposits, net                   (98.3)      (82.2)
Acquisition of subsidiaries, net of cash acquired                 -         4.5
Acquisition of Apro business                                   (1.0)          -
--------------------------------------------------------------------------------
Net cash flows used in investing                             (444.3)     (136.9)
activities
--------------------------------------------------------------------------------
Cash flows from financing activities
   Proceeds on issue of shares                                548.4           -
   Transaction costs associated with                          (57.2)          -
   issue of shares
   Receipt of funds from preference shares                      0.1           -
   Redemption of preference shares                             (0.1)          -
   Capital transactions between                                   -      (161.0)
   subsidiary and shareholders
   Proceeds from borrowings                                   525.6       508.1
   Repayment of borrowings                                   (580.3)     (661.4)
   Dividends paid                                            (164.8)      (53.7)
--------------------------------------------------------------------------------
Net cash flows from/(used in) financing activities            271.7      (368.0)
--------------------------------------------------------------------------------
   Net increase in cash and cash                              453.0        62.7
   equivalents
   Cash and cash equivalents at the                            74.1         7.7
   beginning of the year
   Effect of exchange rate changes on                          (5.1)        3.7
   cash and cash equivalents
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of                       522.0        74.1
the year
--------------------------------------------------------------------------------






CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended 31 December
                                Attributable to equity shareholders of the parent

                        Share     Share     Foreign   Reserve  Retained     Total  Minority     Total
         Note         capital   premium    currency      fund  earnings           interests    equity
                                        translation
                                            reserve
                    $'million $'million   $'million $'million $'million $'million $'million $'million
------------------------------------------------------------------------------------------------------
At 31 December          151.1         -        70.3      14.8   1,161.1   1,397.3      37.4   1,434.7
2003
Profit for the              -         -           -         -     429.8     429.8      11.5     441.3
year
Capital                     -         -           -         -    (156.9)   (156.9)     (4.2)   (161.1)
transactions
between
subsidiary and
shareholders
Equity                      -         -           -         -     (51.6)    (51.6)     (1.4)    (53.0)
dividends paid
by subsidiary
undertaking
prior to share
exchange
transactions
Currency                    -         -       148.0         -          -    148.0       3.9     151.9
translation
differences                
------------------------------------------------------------------------------------------------------
At 31 December          151.1         -       218.3      14.8    1,382.4  1,766.6      47.2   1,813.8
2004
Profit for the              -         -           -         -      538.8    538.8      12.0     550.8
year
Transfer from               -         -           -      (5.4)       5.4        -         -         -
reserve fund
Shares issued
pursuant to
Kinton Trade
Limited
transaction               1.9      32.5           -         -         -      34.4     (25.9)      8.5
Shares issued
pursuant to 
Listing of the           20.3     528.1           -         -         -     548.4         -     548.4
Company
Transaction
costs
associated                  -    (57.2)           -         -         -    (57.2)         -    (57.2)
with issue of
shares
Equity
dividends paid
by subsidiary
undertaking
prior to share
exchange
transactions                -         -           -         -    (50.8)    (50.8)     (1.3)    (52.1)
Equity
dividends paid
by subsidiary
undertaking to
minority                    -         -           -         -         -         -     (5.3)     (5.3)
shareholders
Equity
dividends paid
by the Company  7           -         -           -         -   (110.0)   (110.0)         -   (110.0)
Currency
translation
differences                 -         -      (70.4)         -         -    (70.4)     (0.4)    (70.8)
------------------------------------------------------------------------------------------------------
At 31 December          173.3     503.4       147.9       9.4   1,765.8   2,599.8      26.3   2,626.1
2005
------------------------------------------------------------------------------------------------------



NOTES TO THE FINANCIAL INFORMATION

1. Basis of preparation

(a) Accounting for the share exchange agreements relating to the acquisition of
    Kazakhmys LLC

Pursuant to various share exchange agreements entered into as a result of the
offer made by the Company to shareholders of Kazakhmys LLC, the Company acquired
Kazakhmys LLC on 23 November 2004 in consideration for the allotment of ordinary
shares of £5 each in the Company or for a cash payment. The consideration
offered for each Kazakhmys LLC share was one ordinary share in the Company or a
cash payment of Kazakhstan Tenge ("KZT") 4,736. No shareholder elected to take
the cash option and the offer period closed on 7 January 2005.

Pursuant to the share exchange agreements, the Company issued 15,580,210
ordinary shares of £5 each on or around 25 November 2004, a further 568,738
ordinary shares of £5 each were issued in the period 29 December 2004 to 23
August 2005 and an additional 2,000 ordinary shares of 20 pence each were issued
on 29 December 2005, equivalent to 80 ordinary shares of £5 each prior to the
share split which took place on 23 September 2005 in which the Company's share
capital was redenominated into ordinary shares of 20 pence each. Immediately
after the initial issue of shares pursuant to the share exchange agreements, the
Company's interest in Kazakhmys LLC was 93.96%. This interest increased to
97.40% upon completion of share allotments relating to the share exchange
agreements.

As this transaction involved the combination of businesses under common control,
the pooling of interests method of accounting has been applied in the
presentation of the financial information for the two years ended 31 December
2005 which present the results of the Group as if the Company had always been
the parent company of Kazakhmys LLC. The consolidated profit and loss account
for the year ended 31 December 2004 combines the results of the Company from the
date of incorporation to 31 December 2004 with those of Kazakhmys LLC for the
year then ended. The consolidated balance sheet as at 31 December 2004
consolidates the balance sheet of the Company and that of Kazakhmys LLC group as
at that date.

(b) Basis of accounting

The financial information has been prepared on a historical cost basis, except
for certain classes of property, plant and equipment which have been revalued at
1 January 2002 to determine deemed cost as part of the first-time adoption of
International Financial Reporting Standards ("IFRS") at that date, and
derivative financial instruments which have been measured at fair value. The
financial information is presented in US dollars ("$") and all monetary amounts
are rounded to the nearest million ($'million) except when otherwise indicated.

(c) Statement of compliance

The consolidated financial statements of the Company and all its subsidiaries
have been prepared in accordance with IFRS issued by the International
Accounting Standards Board ("IASB") and interpretations issued by the
International Financial Reporting Interpretations Committee ('IFRIC') of the
IASB as adopted by the European Union up to 31 December 2005.

Kazakhmys LLC, which previously prepared its financial statements under
Kazakhstan Accounting Standards, had a transition date to IFRS of 1 January
2002. As a result, no reconciliation of equity or results reported under
Kazakhstan Accounting Standards and equity and results reported under IFRS is
reported in the consolidated financial statements.

(d) Comparative figures

Where a change in the presentational format of the financial information has
been made during the year, comparative figures have been restated accordingly.

(e) Changes in accounting policies

There have been no changes in accounting policies. The accounting policies
adopted are consistent with those of the previous financial years.

2. Segment information

A segment is a distinguishable component of the Group that is engaged either in
providing products or services (business segment), or in providing products or
services within a particular economic environment (geographical segment), which
is subject to risks and rewards that are different from those of other segments.
Segment information is presented in respect of the Group's business and
geographical segments. From 1 January 2005, the primary format, business
segments, is based on the Group's management and internal reporting structure
following the acquisition by the Group of MKM.

Segment results, assets and liabilities include items directly attributable to a
segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly income taxes payable, deferred taxes and
dividends payable/receivable.

The Group's principal operations are based in Kazakhstan, with MKM, a subsidiary
of Kazakhmys LLC, being based in Germany.

The Group's activities principally relate to:

• Kazakh mining operations which involve the production and sale of:

- copper cathodes and copper rod;

- zinc and zinc concentrate;

- gold and silver; and

- other by-product metals (lead, rhenium and selenium).

• German copper processing operation.

Segmental information is also provided in respect of revenues, by destination
and by product.

(a) Business segments

The Kazakh mining operations, which involve the processing and sale of copper
and other metals, is managed as one business segment. The products are subject
to the same risks and returns, exhibit similar long-term financial performance
and are sold through the same distribution channels. The Group mines all the
copper ore it processes and produces substantially all the copper concentrate it
processes. The Group has a number of activities that exist solely to support the
mining operations including power generation, coal mining and transportation.
These other activities generate less than 10 per cent of total revenues (both
external and internal) and the related assets are less than 10 per cent of total
assets.

For the purposes of the financial information one business segment is therefore
identified as a reportable segment in respect of the year ended 31 December
2004. From 1 January 2005, the UK operation has primarily purchased its products
from the Kazakh mining business and applies an appropriate mark-up prior to
onward sale to third party customers. It is therefore regarded as a sales
function on behalf of the Kazakh mining business and is not considered a
distinct business segment. The price at which sales are made to the Company by
Kazakhmys LLC is the prevailing price of commodities as determined by the LME.

At the end of 2004, the Group acquired MKM, which operates from Germany, where
it manufactures copper and copper alloy semi-finished products. MKM faces
different risks to the Group's Kazakh mining operations and, therefore, from 1
January 2005 the Group operated two distinct business segments.

Segmental information in respect of these two business segments for the years
ended 31 December 2005 and 2004 is presented below:


Income statement information
                           Year ended 31 December 2005   Year ended 31 December 2004
---------------------------------------------------------------------------------------
                            Kazakh        MKM     Total     Kazakh       MKM     Total
                            Mining                          Mining 
                         $'million  $'million $'million  $'million $'million $'million

Sales to external          1,740.9      856.6   2,597.5    1,259.5         -   1,259.5
customers
---------------------------------------------------------------------------------------
Gross profit               1,024.8       66.1   1,090.9      754.1         -     754.1
Operating costs             (204.1)     (44.3)   (248.4)    (175.6)        -    (175.6)
---------------------------------------------------------------------------------------
Profit before taxation,
finance items and
negative goodwill            820.7       21.8     842.5      578.5         -     578.5
---------------------------------------------------------------------------------------
Net finance income/(costs)                          5.6                          (24.8)
Recognition of negative                               -                          111.3
goodwill
---------------------------------------------------------------------------------------
Profit before taxation                            848.1                          665.0
Income tax expense                               (297.3)                        (223.7)
---------------------------------------------------------------------------------------
Profit for the year                               550.8                          441.3
---------------------------------------------------------------------------------------



Balance sheet information
                           Year ended 31 December 2005   Year ended 31 December 2004
---------------------------------------------------------------------------------------
                            Kazakh        MKM     Total     Kazakh       MKM     Total
                            Mining                          Mining 
                         $'million  $'million $'million  $'million $'million $'million

Assets
Tangible and intangible    1,598.9      165.8  1,764.7     1,494.1     202.1   1,696.2
assets
Non-current investments        2.7        3.1      5.8         2.0       3.3       5.3
Operating assets (1)         606.4      220.0    826.4       568.1     134.1     702.2
Current investments          356.5          -    356.5       259.9         -     259.9
Cash and cash                519.4        2.6    522.0        11.7      62.4      74.1
equivalents
---------------------------------------------------------------------------------------
Segment assets             3,083.9      391.5  3,475.4     2,335.8     401.9   2,737.7
---------------------------------------------------------------------------------------
Unallocated assets                                   -                               -
Elimination                                     (195.4)                         (185.6)
---------------------------------------------------------------------------------------
Total assets                                   3,280.0                         2,552.1
---------------------------------------------------------------------------------------
Liabilities
Employee benefits and         67.3        7.3     74.6        59.8      12.4      72.2
provisions
Trade and other payables     129.1       29.5    158.6       102.2      42.4     144.6
Borrowings                    41.6      202.8    244.4       101.1     186.5     287.6
---------------------------------------------------------------------------------------
Segment liabilities          238.0      239.6    477.6       263.1     241.3     504.4
Unallocated liabilities                          371.6                           419.4
Elimination                                     (195.3)                         (185.5)
---------------------------------------------------------------------------------------
Total liabilities                                653.9                           738.3
---------------------------------------------------------------------------------------

(1) Operating assets include inventories, trade and other receivables,
    prepayments and other current assets and restricted cash.


Earnings before interest, tax, depreciation and amortisation ("EBITDA")
excluding special items (1) by business segments

                           Year ended 31 December 2005   Year ended 31 December 2004
---------------------------------------------------------------------------------------
                            Kazakh        MKM     Total     Kazakh       MKM     Total
                            Mining                          Mining 
                         $'million  $'million $'million  $'million $'million $'million
---------------------------------------------------------------------------------------
Profit before taxation,
finance items and
negative goodwill            820.8       21.7     842.5      578.5         -     578.5
Special items:
Add: write-off of
property, plant and
equipment                      6.8          -       6.8       30.4         -      30.4
Add/less: loss/(gain) on
disposal of property,
plant and equipment            8.6       (4.0)      4.6       25.9         -      25.9
---------------------------------------------------------------------------------------
Profit before taxation,
finance items and
negative goodwill
excluding special items      836.2       17.7     853.9      634.8         -     634.8
Add: depreciation and        196.7       21.0     217.7      155.6         -     155.6
depletion
Add: amortisation              1.5        0.4       1.9        1.0         -       1.0
---------------------------------------------------------------------------------------
EBITDA excluding special   1,034.4       39.1   1,073.5      791.4         -     791.4
items
---------------------------------------------------------------------------------------

Net liquid funds/(debt) by business segments

                           Year ended 31 December 2005   Year ended 31 December 2004
---------------------------------------------------------------------------------------
                            Kazakh        MKM     Total     Kazakh       MKM     Total
                            Mining                          Mining 
                         $'million  $'million $'million  $'million $'million $'million
---------------------------------------------------------------------------------------
Cash and cash                519.4        2.6     522.0       11.7      62.4      74.1
equivalents
Current investments          356.5          -     356.5      259.9         -     259.9
Borrowings (2)               (41.6)    (202.5)   (244.1)    (101.0)   (185.5)   (286.5)
Inter-segment borrowings(2)      -      195.3     195.3          -     185.5     185.5
Finance leases                   -       (0.3)     (0.3)         -      (1.0)     (1.0)
Redeemable preference            -          -         -       (0.1)        -      (0.1)
shares
---------------------------------------------------------------------------------------
Net liquid funds/(debt)      834.3       (4.9)    829.4       170.5     61.4      231.9
---------------------------------------------------------------------------------------

(1) EBITDA excluding special items is defined as profit before interest,
    taxation, depreciation and amortisation, as adjusted for special items. Special
    items are those items which are non-recurring or variable in nature and which do
    not impact the underlying trading performance of the business.

(2) Borrowings of MKM include amounts borrowed from the Kazakh Mining segment.


Capital expenditure, depreciation, write-offs and impairment losses by business
segments

                           Year ended 31 December 2005   Year ended 31 December 2004
---------------------------------------------------------------------------------------
                            Kazakh        MKM     Total     Kazakh       MKM     Total
                            Mining                          Mining 
                         $'million  $'million $'million  $'million $'million $'million
---------------------------------------------------------------------------------------
Property, plant and          321.2       12.5     333.7      152.8         -     152.8
equipment
Mine stripping costs          26.5          -      26.5        5.2         -       5.2
Intangible assets              4.2        1.0       5.2        4.2         -       4.2
---------------------------------------------------------------------------------------
Capital expenditure          351.9       13.5     365.4      162.2         -     162.2
---------------------------------------------------------------------------------------
Depreciation and             196.7       21.0     217.7      155.6         -     155.6
depletion
Amortisation                   1.5        0.4       1.9        1.0         -       1.0
---------------------------------------------------------------------------------------
Depreciation, depletion
and amortisation             198.2       21.4     219.6      156.6         -     156.6
Write-offs and                11.8          -      11.8       41.9         -      41.9
impairment losses
---------------------------------------------------------------------------------------

(b) Segmental information in respect of revenues

Revenues by product are as follows:
                                                                2005       2004
                                                           $'million  $'million
--------------------------------------------------------------------------------
Kazakh Mining
Copper cathodes                                              1,377.2      911.5
Silver in granules                                             147.3      115.2
Zinc metal                                                      64.3        5.7
Gold bullion                                                    37.7       14.4
Copper rods                                                     26.5      134.7
Other by-products                                               14.5       13.5
Zinc concentrate                                                15.0        9.3
Tolling from copper                                              3.4        8.5
Tolling from precious metals                                     3.1        1.2
Other revenue                                                   51.9       45.5
--------------------------------------------------------------------------------
                                                             1,740.9    1,259.5
--------------------------------------------------------------------------------
MKM
Wire                                                           389.1          -
Sheet steel and steel strips                                   252.3          -
Tubes and bars                                                 167.3          -
Metal trade                                                     47.9          -
--------------------------------------------------------------------------------
                                                               856.6          -
--------------------------------------------------------------------------------
Total revenues                                               2,597.5    1,259.5
--------------------------------------------------------------------------------

Provisional pricing

Approximately 50% of sales agreements provide for provisional pricing of sales
in the month of sale with final pricing settlement based on average LME copper
price for the month following the sale.

For the year ended 31 December 2005 gains of $52.4 million (2004: nil), relating
to the difference between provisional pricing and final pricing, have been
included within revenues.

At 31 December 2005, copper sales totalling 20,881 tonnes remained to be finally
priced and were recorded at that date at an average price of $4,342 per tonne
based on provisional invoices. The gain arising in January 2006 of $7.9 million
(2004: nil) relating to contracts provisionally priced in December will be
recognised in the consolidated financial statements for the year ended 31
December 2006.

Revenues by destination are as follows:
                                                     Year ended 31 December 2005
--------------------------------------------------------------------------------
                                             China    Europe     Other     Total
                                         $'million $'million $'million $'million
--------------------------------------------------------------------------------
Sales to third parties                     1,303.0     995.1     299.4   2,597.5
--------------------------------------------------------------------------------

                                                     Year ended 31 December 2004
--------------------------------------------------------------------------------
                                             China    Europe     Other     Total
                                         $'million $'million $'million $'million
--------------------------------------------------------------------------------
Sales to third parties                       856.4     143.2     259.9   1,259.5
--------------------------------------------------------------------------------

3. Write-offs and impairment losses

                                                               2005          2004
                                                          $'million     $'million
-----------------------------------------------------------------------------------
Write off of plant, property and equipment                      6.8           30.3
Provisions against prepayment and other                         3.8              -
current assets
Impairment for investments                                      1.8              -
Write off of goodwill                                           0.4              -
Provisions against trade and other receivables                  0.3           13.3
Release of provisions for obsolete inventories                 (1.3)          (1.7)
------------------------------------------------------------------------------------
                                                               11.8           41.9
------------------------------------------------------------------------------------
 

4. Finance income and finance costs

                                                               2005          2004
                                                          $'million     $'million
----------------------------------------------------------------------------------
Finance income:
Interest income                                                30.6          13.8
Foreign exchange gains                                         56.8          56.5
----------------------------------------------------------------------------------
Total finance income                                           87.4          70.3
----------------------------------------------------------------------------------
Finance costs:
Interest expense                                               (8.8)         (4.9)
Interest on employee obligations                               (2.0)         (1.6)
Unwinding of discount on provisions                            (3.2)         (2.7)
----------------------------------------------------------------------------------
Finance costs before foreign exchange                         (14.0)         (9.2)
losses
Foreign exchange losses                                       (67.8)        (85.9)
----------------------------------------------------------------------------------
Total finance costs                                           (81.8)        (95.1)
----------------------------------------------------------------------------------

5. Income tax

Major components of income tax expense for the years presented are:

                                                               2005          2004
                                                          $'million     $'million
----------------------------------------------------------------------------------
Current income tax
Corporate income tax - current period                         281.0         238.0
Corporate income tax - prior periods                           (7.7)            -
Excess profits tax                                             27.0          15.9
----------------------------------------------------------------------------------
                                                              300.3         253.9
----------------------------------------------------------------------------------
Deferred income tax
Corporate income tax - current period                          (8.1)        (28.6)
Excess profits tax                                              5.1          (1.6)
----------------------------------------------------------------------------------
                                                               (3.0)        (30.2)
----------------------------------------------------------------------------------
Income tax expense                                            297.3         223.7
----------------------------------------------------------------------------------

The tax assessed on the profit for the year is higher than the standard rate of
corporation tax in the tax jurisdictions in which the Group operates.

A reconciliation of income tax expense applicable to accounting profit before
income tax at the statutory income tax rate to income tax expense at the Group's
effective income tax rate for the periods presented is as follows:

                                                               2005          2004
                                                          $'million     $'million
----------------------------------------------------------------------------------
Profit before taxation                                        848.1         665.0

At statutory income tax rate of 30%                           254.4         199.5
Expenditure not allowable for income tax                        8.6          14.0
purposes
Overprovided in previous years                                 (7.7)            -
Effect of higher tax rate in Germany                            0.7             -
Change in the tax rate in Germany                              (2.7)            -
Recognition of negative goodwill                                  -         (33.4)
Transactions with related parties                                 -          23.9
Unremitted overseas earnings                                   11.9           5.4
Excess profits tax                                             32.1          14.3
----------------------------------------------------------------------------------
At effective income tax rate of 35.1% (2004:33.6%)            297.3         223.7
----------------------------------------------------------------------------------

Corporate income tax is calculated at 30% of the assessable profit for the
period for the Company and Kazakhmys LLC. The MKM tax rate is calculated at
35.98% (2004: 38.13%) and relates to German corporate income tax and trade tax.

Excess profits tax is levied on profitable subsoil contracts where the Internal
Rate of Return for the current year exceeds 20%. The effective rate for excess
profits tax for those subsoil contracts liable to this tax is 37% (2004: 18%).



6. Earnings per share

The earnings per share ("EPS") calculation has assumed that the number of
ordinary shares issued pursuant to share exchange agreements in relation to the
acquisition of Kazakhmys LLC have been in issue throughout the two year period
ended 31 December 2005 consistent with the pooling of interests method used to
account for combinations of businesses under common control. The EPS calculation
has also assumed that the share split that occurred on 26 September 2005, in
which the Company's share capital was redenominated into ordinary shares of 20
pence each, was in effect for all prior periods.

The Directors believe that this basis for the EPS calculation provides a more
relevant performance measure of the Group than using an EPS calculation which
reflected shares issued based on the actual date of issue.

Basic and diluted EPS

Basic EPS is calculated by dividing profit for the year attributable to equity
shareholders of the Company by the weighted average number of ordinary shares of
20 pence each outstanding during the year. The Company has no dilutive potential
ordinary shares.

The following reflects the income and share data used in the EPS computations.
                                                                 2005         2004
                                                            $'million    $'million
----------------------------------------------------------------------------------

Net profit attributable to equity shareholders                  538.8        429.8
of the Company

                                                                 2005         2004
                                                                   No.          No.
Number of shares
Weighted average number of ordinary shares of             418,105,627  403,725,750
20 pence each for EPS calculation
----------------------------------------------------------------------------------
EPS-basic and diluted                                           $1.29        $1.06
----------------------------------------------------------------------------------


EPS based on Underlying Profit

The Group's Underlying Profit is the profit for the year after adding back items
which are non-recurring or variable in nature and which do not impact the
underlying trading performance of the business and their resultant tax and
minority interest effects, as shown in the table below. EPS based on Underlying
Profit is calculated by dividing Underlying Profit by the number of ordinary
shares of 20 pence each outstanding during the year. The Directors believe EPS
based on Underlying Profit provides a more consistent measure for comparing the
underlying trading performance of the Group between 2004 and 2005.

The following shows the reconciliation of Underlying Profit from the reported
profit and the share data used in the computations for EPS based on Underlying
Profit:
                                                                 2005         2004
                                                            $'million    $'million
----------------------------------------------------------------------------------
Net profit attributable to equity shareholders                  538.8        429.8
of the Company
Special items:
Recognition of negative goodwill                                    -       (111.3)
Write-off of property, plant and equipment                        6.8         30.3
Loss on disposal of property, plant and                           4.6         25.9
equipment
Tax effect of non-recurring items                                (0.5)         2.9
Minority interest effect of non-recurring                         0.1         (1.5)
items
----------------------------------------------------------------------------------
Underlying Profit                                               549.8        376.1
----------------------------------------------------------------------------------
                                                                 2005         2004
                                                                   No.          No.
Weighted average number of ordinary shares of             418,105,627  403,725,750
20 pence each for EPS based on Underlying
Profit calculation                                                    
----------------------------------------------------------------------------------
EPS based on Underlying Profit - basic and                      $1.31        $0.93
diluted
----------------------------------------------------------------------------------


7. Dividends paid and proposed

The dividend per share disclosures below have been calculated using the number
of shares in issue at the date of payment after reflecting the share split that
occurred on 26 September 2005 for comparability purposes. The dividends declared
and paid during the years ended 31 December 2005 and 2004 are as follows:

                                                            Per share     Amount
                                                                    $  $'million
Year ended 31 December 2005

Declared by the Company:
Interim dividend in respect of year ended 31 December 2005      0.27       110.0
Declared by Kazakhmys LLC:
Interim dividend in respect of year ended 31 December 2004      0.13        52.2
--------------------------------------------------------------------------------
                                                                0.40       162.2
--------------------------------------------------------------------------------

Year ended 31 December 2004

Declared by Kazakhmys LLC:
Interim dividend in respect of year ended 31 December 2004      0.13        53.0
--------------------------------------------------------------------------------

The dividends shown above are those that have been paid and proposed by the
Company, in respect of the period following the share exchange, and Kazakhmys
LLC for the period prior to the share exchange. This presentation is consistent
with the pooling of interests method used to account for combinations of
businesses under common control.

Dividend declared by Kazakhmys LLC

On 7 September 2004, Kazakhmys LLC paid an interim dividend in respect of the
year ended 31 December 2004 of $53.0 million which was paid to shareholders on
the register of Kazakhmys LLC as at 6 September 2004. On 24 February 2005,
Kazakhmys LLC paid an interim dividend in respect of the year ended 31 December
2004 of $52.2 million, which was paid to shareholders on the register of
Kazakhmys LLC as at 31 October 2004. Accordingly, as the share exchange
agreement was not effective until 23 November 2004, these dividends were paid
directly to Kazakhmys LLC's former shareholders, rather than to the Company. The
dividends are shown in the financial information as cash outflows for the Group,
consistent with the pooling of interests method of accounting.

Dividend declared by the Company

On 5 July 2005, the Company paid an interim dividend of $110.0 million in
respect of the year ended 31 December 2005 to shareholders on the register as at
1 July 2005.

Dividends declared after the balance sheet date
                                                   Per share      Amount
                                                           $   $'million
Proposed by the Directors on 29 March 2006 (not
recognised as a liability as at 31 December
2005):
Final dividend in respect of the year ended 31          0.36       168.3
December 2005

In relation to the dividend proposed by the Directors on 29 March 2006 the UK
pounds sterling per share amount is 20.6856 pence.


8. Share capital and reserves

(a) Authorised and allotted share capital

A pooling of interests method of accounting has been applied in the presentation
of the financial information. This method presents the results of the Group as
if the Company had always been the parent company. This has the effect that,
despite the Company not being incorporated until 15 July 2004, the ordinary
share capital shown throughout the period of the financial information is that
of the Company resulting from the share exchange with the previous shareholders
of Kazakhmys LLC.

In the statutory accounts of the Company for the year ended 31 December 2004,
the share capital as at 1 January 2004, resulting from the adoption of the
pooling of interests method of accounting, was estimated based on the number of
share swaps expected to be undertaken pursuant to share exchange agreements. As
the number of share swaps undertaken was finalised during 2005, the share
capital as at 1 January 2004 was restated to take account of those additional
shares issued.

On 23 September 2005, a share split took place in which each ordinary share of £
5 each was sub-divided into 25 ordinary shares of 20 pence each.


                                         Number    £'million      $'million
----------------------------------------------------------------------------
Authorised - 31 December 2005
Ordinary shares of 20 pence each    750,000,000        150.0              -
Special share of £1.00 each                   1            -              -
----------------------------------------------------------------------------
At 31 December 2005                 750,000,001        150.0              -
----------------------------------------------------------------------------
Allotted and called up share
capital
As at 31 December 2004               16,149,030         80.7          151.1
----------------------------------------------------------------------------
As at 31 December 2005              467,474,200         93.5          173.3
----------------------------------------------------------------------------


The changes in share capital, including the impact of the share split are shown
below:
                                                                    
                                                                  
                                            Number of    Share      Share
                                               shares  capital    premium     Total  
                                                     $'million  $'million $'million
------------------------------------------------------------------------------------
Ordinary shares of £5 each issued and
fully paid 
Shares issued to initial shareholders              2         -          -         -
Shares issued pursuant to share exchange  16,149,028     151.1          -     151.1
agreements (1)
------------------------------------------------------------------------------------
Number of shares in issue at 1 January
2004, 31 December 2004 and 23 September
2005                                      16,149,030     151.1          -     151.1
------------------------------------------------------------------------------------
Share capital following the share split:

                                            Number of    Share      Share
                                               shares  capital    premium     Total  
                                                     $'million  $'million $'million
------------------------------------------------------------------------------------
Ordinary shares of 20 pence each
issued and fully paid
Number of shares in issue at 23           403,725,750    151.1          -     151.1
September 2005
Shares issued pursuant to transaction
with Kinton Trade Limited                   5,314,425      1.9       32.5      34.4
Shares issued pursuant to the
Company's Listing (net of expenses
$57.2 million)                             58,434,025     20.3      470.9     491.2
------------------------------------------------------------------------------------
                                          467,474,200    173.3      503.4     676.7
------------------------------------------------------------------------------------
The special share is analysed as follows:
Special share of £1.00
At 1 January 2004                                  -          -         -         -
Issue of special share                             1          -         -         -
------------------------------------------------------------------------------------
At 31 December 2004                                1          -         -         -
Redemption of special share                       (1)         -         -         -
------------------------------------------------------------------------------------
At 31 December 2005                                -          -         -         -
------------------------------------------------------------------------------------


(1) Includes 80 ordinary shares of £5 each which were actually issued on 29
December 2005 as 2,000 ordinary shares of 20 pence each. These shares have been
included in the proforma number of shares issued pursuant to the share exchange
agreements to reflect the pooling of interests method of accounting for the
transaction rather than its legal form.

(b) Ordinary shares

(i) Year ended 31 December 2004

On incorporation, the Company issued one ordinary share of £1 each to each of
the two subscribers to the Memorandum of Association. On 28 September 2004,
eight ordinary shares of £1 each were issued at par. Pursuant to a special
resolution of the Company dated 22 October 2004, all the issued and unissued
ordinary shares of £1 each of the Company were consolidated and divided into
10,000 ordinary shares of £5 each and the authorised share capital of the
Company was increased to £100,050,000 by the creation of 19,990,000 ordinary
shares of £5 each and 50,000 redeemable preference shares of £1 each. Pursuant
to a written resolution dated 19 November 2004, the authorised share capital of
the Company was increased from £100,050,000 to £100,050,001 by the creation of
one special share of £1.

Between 23 November 2004 and 23 August 2005, a total number of 16,148,948
ordinary shares of £5 each in the Company were issued and a further 2,000
ordinary shares of 20 pence each were issued on 29 December 2005 (equivalent to
80 ordinary shares of £5 each prior to the share split) pursuant to share
exchange agreements in relation to the acquisition of Kazakhmys LLC.

(ii) Year ended 31 December 2005

Pursuant to a special resolution passed on 23 September 2005 it was resolved
inter alia to:

• divide the £50,000 nominal amount of authorised share capital of the
  Company formerly divided into 50,000 redeemable preference shares of £1 each
  into 10,000 ordinary shares of £5 each;

• subdivide each ordinary share of £5 each in the capital of the Company
  into 25 ordinary shares of 20 pence each; and

• increase the authorised share capital of the Company from £100,050,001
  to £150,000,001 by the creation of 249,750,000 ordinary shares of 20 pence each.

On 26 September 2005, the Company issued 5,314,425 ordinary shares of 20 pence
each in consideration for the transfer to it of 127,546,200 units in Kazakhmys
LLC from Kinton Trade Limited. This was an exchange rate equivalent to that
applied pursuant to the share exchange offer made by the Company in November
2004 when it first acquired units in Kazakhmys LLC.

On 12 October 2005, the Company's ordinary shares were admitted to the Official
List of the Financial Services Authority and to trading on the London Stock
Exchange. Following the exercise of an over-allotment option, the global offer
comprised 140,849,373 ordinary shares of 20 pence each at a price of £5.40, of
which 58,434,025 new ordinary shares of 20 pence each were issued by the Company
and 82,415,348 were ordinary shares of 20 pence each sold by existing
shareholders. Gross proceeds of $548.4 million (£315.5 million) were received by
the Company following the issue of the new ordinary shares.


(c) Special share

On 19 November 2004, a special share of £1 was issued to Perry Partners S.A. in
connection with the refinancing by Credit Suisse First Boston, London Branch, of
debt owed by Perry Partners S.A. The beneficial owner of the share was Perry
Partners S.A. although the holder was Credit Suisse First Boston, London Branch,
by way of a pledge agreement. The special share was the sole share of its class,
and whilst not giving any form of control over the Company, it gave the holder
the right of veto over a limited number of transactions by the Company. The
special share did not qualify for dividends. On the Listing of the Company, the
consent rights attaching to it ceased to apply. The special share was redeemed
on 17 November 2005.

9. Reconciliation of profit before taxation to net cash inflow from operating
activities
                                                             2005       2004
                                                        $'million  $'million
--------------------------------------------------------------------------------
Profit before taxation                                      848.1      665.0
Interest income                                             (30.6)     (13.8)
Interest expense                                              8.8        4.9
Depreciation and depletion                                  217.7      155.6
Amortisation                                                  1.9        1.1
Recognition of negative goodwill                                -     (111.3)
Write off and impairment losses                              11.8       41.8
Unrealised foreign exchange loss                              0.3       13.3
Loss on disposal of property, plant and                       4.6       25.9
equipment
--------------------------------------------------------------------------------
Operating cash flows before changes in working            1,062.6      782.5
capital and provisions
Increase in inventories                                     (97.1)     (28.5)
(Increase)/decrease in trade and other                      (69.5)      79.4
receivables
Decrease in prepayments and other current assets             18.0        0.1
Decrease/(increase) in restricted cash                       29.0      (30.7)
Increase/(decrease) in trade and other payables              20.3      (65.1)
Increase in employee benefits                                 1.2        1.1
Increase/(decrease) in provisions                             3.4       (4.1)
--------------------------------------------------------------------------------
Cash flows from operations before income                    967.9      734.7
taxes and interest
   Income taxes paid                                       (333.3)    (164.2)
   Interest paid                                             (9.0)      (2.9)
--------------------------------------------------------------------------------
Net cash inflow from operating activities                   625.6      567.6
--------------------------------------------------------------------------------



10. Movement in net liquid funds

                              At                                             Other non            At
                       1 January               Acquisition    Net exchange        cash   31 December
                            2004   Cash flow        of MKM     translation   movements          2004  
                       $'million   $'million     $'million       $'million   $'million     $'million
------------------------------------------------------------------------------------------------------
Cash and cash                7.7        62.7             -             3.7           -          74.1
equivalents
Current investments        260.0        (3.6)            -            25.4       (21.9)        259.9
Borrowings                (169.7)      153.3         (82.1)            8.4       (10.9)       (101.0)
Finance leases                 -           -          (1.0)              -           -          (1.0)
Redeemable preference          -           -             -               -        (0.1)         (0.1)
shares
------------------------------------------------------------------------------------------------------
Net liquid funds            98.0       212.4         (83.1)           37.5       (32.9)        231.9
------------------------------------------------------------------------------------------------------


                                 At                              Other non           At
                          1 January              Net exchange         cash  31 December
                               2005    Cash flow  translation    movements         2005
                          $'million    $'million    $'million    $'million    $'million
-----------------------------------------------------------------------------------------
Cash and cash                  74.1        453.0         (5.1)           -        522.0
equivalents
Current investments           259.9         98.8         (8.6)         6.4        356.5
Borrowings                   (101.0)        54.0          2.5         (4.4)       (48.9)
Finance leases                 (1.0)         0.7          0.1            -         (0.2)
Redeemable preference          (0.1)         0.1            -            -            -
shares
-----------------------------------------------------------------------------------------
Net liquid funds              231.9        606.6        (11.1)         2.0        829.4
-----------------------------------------------------------------------------------------


11. Events after the balance sheet date

(a) Post year-end dividend

The Directors have proposed a final dividend in respect of the year ended 31
December 2005 of 20.6856 pence per share (equivalent to 36.0 US cents per
share). Subject to approval of shareholders at the annual general meeting to be
held on 23 May 2006, this dividend shall be paid on 26 May 2006.

(b) Capital contribution to Kazakhmys LLC

On 31 January 2006, the Company made a capital contribution of $185.7 million to
Kazakhmys LLC. The offer period for subscribing shareholders to take up the
right of minority interests who did not participate in the capital contribution,
as permitted by legislation, closed on 14 March 2006. The Company's interest in
Kazakhmys LLC resulting from this capital contribution increased from 98.68% as
at 31 December 2005 to 99.08%.

(c) Option agreement with Executive Chairman

On 14 March 2006, the Company announced that a vehicle wholly owned by the
Company's executive Chairman,

Mr Kim, had agreed to acquire a 25% stake in ENRC Kazakhstan Holding B.V.
('EKH'), the holding company for certain assets of the Eurasia Natural Resources
group's metals and mining business. EKH primarily operates in Kazakhstan
producing, in particular, chrome, iron ore and alumina. The Company has been
given the benefit of a call option in respect of Mr Kim's shareholding in EKH.
The terms of the call option allow the Company, at its absolute discretion, from
1 January 2007 to and until 31 December 2007, to call for Mr Kim's interest in
EKH to be transferred to the Company for a consideration representing 100% of
the initial investment of $751 million plus a 10% margin (reflecting the risk of
the initial investment) and the actual financing and transaction costs incurred
by Mr Kim. This is provided that, as required by the Listing Rules, this
consideration and the terms of the option are determined by an independent
adviser to be fair and reasonable so far as the remaining shareholders of the
Company are concerned. Mr Kim is not permitted to dispose of his interest in EKH
before 1 January 2008 without the consent of the Company. Should the Company
exercise the call option, then it will comply with all class tests and related
party rules relevant to the Company. Any such decision would be taken by an
independent committee of the Board.

12. Announcement based on audited accounts

The financial information set out herein does not constitute the Company's
statutory accounts for the years ended 31 December 2005 or 2004 but is derived
from these accounts. The statutory accounts for the year ended 31 December 2004
have been delivered to the Registrar of Companies and those for 2005 will be
delivered following the Company's AGM on 23 May 2006. The auditors have reported
on those accounts and their report was unqualified and did not contain
statements under Sections 237(2) or (3) Companies Act 1985.


NOTICE OF FINAL DIVIDEND


Notice is hereby given that a final dividend on the Company's ordinary share
capital in respect of the year ended 31 December 2005 is proposed as follows:
-------------------------------------------------------------------------------------
Amount proposed in UK pounds sterling (subject to approval by       20.6856 pence per
shareholders at the AGM)                                               ordinary share
-------------------------------------------------------------------------------------
Amount to be paid in US dollars (subject to approval by             36.0 US cents per
shareholders at the AGM)                                               ordinary share
-------------------------------------------------------------------------------------
Currency conversion dates                                        23/24/27/28/29 March
                                                                                 2006
-------------------------------------------------------------------------------------
Ex-dividend on the London Stock Exchange from the commencement          26 April 2006
of trading on                                                                        
-------------------------------------------------------------------------------------
Record date                                                             28 April 2006
-------------------------------------------------------------------------------------
Dividend warrants posted                                                  25 May 2006
-------------------------------------------------------------------------------------
Payment date of dividend                                                  26 May 2006
-------------------------------------------------------------------------------------


The Directors propose, subject to the passing of the resolution at the AGM
relating to the adoption of revised Articles of Association, to pay the final
dividend in US dollars at 36.0 US cents per ordinary share. Subject to
shareholders approving this recommendation at the AGM, the dividend will be paid
on 26 May 2006 to shareholders on the register at close of business on 28 April
2006. Shareholders may elect to receive their dividends in UK pounds sterling by
completing a Currency Election Form, a copy of which may obtained from
Computershare Investor Services PLC, the Company's registrars, and returning it
to them by 12 May 2006.



By order of the Board



Matthew Hird

Company Secretary

29 March 2006



PRODUCTION AND SALES FIGURES

Historical production and sales figures for the year ended 31 December 2004 are
taken from the Price Range Prospectus without material modification.

SUMMARY OF SIGNIFICANT PRODUCTION AND SALES FIGURES

------------------------------------------------------------------------------
                                                      2005               2004        
Kazakh Mining:                                                                      
Ore mined (kt)                                      39,446             35,376       
Copper content in ore mined (%)                       1.03               1.30        
------------------------------------------------------------------------------
Copper cathode production (kt):                                                     
From own concentrate                                   339                405        
From purchased concentrate                              48                  3         
Total Kazakhmys copper cathodes produced               387                408        
(excluding tolling) (kt)                                                            
Tolling (kt)                                            10                 20         
Total Kazakhmys copper cathodes produced               397                428        
(including tolling) (kt)                                                            
------------------------------------------------------------------------------
Total Kazakhmys copper cathodes and copper             370                414        
rods sold (kt)                                                                      
------------------------------------------------------------------------------
MKM:                                                                                
------------------------------------------------------------------------------
Wire sales (t)                                     119,368                  -         
Flat sales (t)                                      57,866                  -         
Tubes and Bars sales (t)                            40,773                  -         
------------------------------------------------------------------------------
Total MKM sales (t)                                 218,007                 -         
-------------------------------------------------------------------------------


MINING


Metal Mining

---------------------------------------------------------------------------------------
                  Ore  Mined       Copper        Zinc          Gold         Silver    
                 2005    2004     2005 2004   2005  2004    2005   2004     2005  2004
                   kt      kt        %    %      %     %     g/t    g/t      g/t   g/t
----------------------------------------------------------------------------------------
North           3,516   3,916     0.77 0.76      -     -       -      -    10.48  11.73
South           7,281   8,706     0.82 1.03      -     -       -      -    13.44  21.22
Stepnoy         3,481       -     0.76    -      -     -       -      -    17.27      -
East            5,776   4,415     0.95 1.16      -     -       -      -    24.26  26.59
West            3,185   3,157     0.61 0.95      -     -       -      -    18.25  23.62
Annensky        4,807   4,453     1.15 1.35      -     -       -      -    21.67  20.54
---------------------------------------------------------------------------------------
TOTAL ZHEZKAZGAN 
COMPLEX        28,046  24,647     0.87 1.06      -     -       -      -    17.73  20.86
---------------------------------------------------------------------------------------
Kounrad         3,508   3,626     0.28 0.28      -     -       -      -     1.62   1.68
Shatyrkul         473     227     2.24 1.67      -     -    0.37   0.34     2.62   2.70
Sayak I & Sayak III  
                1,645   1,213     1.19 1.07      -     -    0.30   0.33     6.02   6.09
Nurkazgan         247     609     0.40 1.85      -     -    0.15   0.33     1.41   2.87
---------------------------------------------------------------------------------------
TOTAL BALKHASH  5,873   5,675     0.70 0.67      -     -    0.30(1)0.33(1)  2.99   2.79
COMPLEX                                                             
---------------------------------------------------------------------------------------
Orlovskoe       1,667   1,666     4.31 4.47   3.91  3.76    0.55   0.52    54.20  48.40
Belousovskoe       247    293     0.91 0.90   2.84  3.72    0.45   0.58    46.68  52.22
Irtyshskoe         448    455     1.07 1.21   2.74  2.64    0.31   0.33    44.72  43.60
Nikolaevskoe     2,019  2,002     1.06 2.94   2.01  1.05    0.19   0.20    18.37  17.99
Yubileyno -        322    358     3.67 3.82   4.26  4.83    0.65   0.57    42.46  46.18
Snegirikhinskoe                                                           
Artemyvevskoe      379      -     1.72    -   6.65     -    1.81     -    184.78      -
Shemonaikhinskoe     -    206        - 3.08      -  6.74       -  0.81         -  79.03
Abyz               445     74     1.07 0.15   3.90  0.82    4.91  1.51     54.55  17.94
---------------------------------------------------------------------------------------
TOTAL EAST       5,527  5,054     2.23 3.20   3.28  2.74    0.84  0.41     48.31  36.79
REGION                                                                    
---------------------------------------------------------------------------------------
TOTAL KAZAKHMYS 39,446 35,376     1.03 1.30   3.28  2.74    0.68  0.39     19.81  20.23
                                         (2)   (2)   (3)   (3)            
---------------------------------------------------------------------------------------

(1) Production only from Shatyrkul, Sayak I & Sayak III, and Nurkazgan mines in
Balkhash Complex.

(2) Production only from East Region.

(3) Production only from Balkhash Complex (excluding Kounrad mine) and East
Regions.


Coal Mining

---------------------------------------------------------------------------
                         Coal mined       Waste stripped        Strip ratio 
                        2005     2004      2005      2004     2005     2004
                          kt       kt      kbcm      kbcm    bcm:t    bcm:t
---------------------------------------------------------------------------
Borlynskoe             5,745    5,924     6,207     6,427     1.08     1.08
Kuu - Chekinskoe       1,262    1,376     4,631     5,392     3.67     3.92
---------------------------------------------------------------------------
TOTAL KAZAKHMYS        7,007    7,300    10,838    11,819     1.55     1.62
---------------------------------------------------------------------------


PROCESSING


Copper Processing



--------------------------------------------------------------------------------
                      Copper concentrate produced       Copper in concentrate   
                               2005           2004           2005           2004
                                 kt             kt              %              %
--------------------------------------------------------------------------------
Zhezkazgan No.1                 186            219           39.8           39.9
Zhezkazgan No.2                 234            238           39.4           38.6
Satpaev                         179            211           27.3           26.1
--------------------------------------------------------------------------------
TOTAL ZHEZKAZGAN                599            668           35.9           35.1
COMPLEX                                                                         
--------------------------------------------------------------------------------
Balkhash                        181            175           18.2           17.2
--------------------------------------------------------------------------------
TOTAL BALKHASH                  181            175           18.2           17.2
COMPLEX                                                                         
--------------------------------------------------------------------------------
Orlovskoe                       321            345           20.2           19.5
Belousovskoe                     12             14           14.6           14.6
Irtyshskoe                       23             28           14.1           15.7
Nikolaevskoe                    121            363           14.6           17.4
Karagaily                       115              -            2.9              -
--------------------------------------------------------------------------------
TOTAL EAST REGION               592            750           15.3           18.2
--------------------------------------------------------------------------------
Own copper                       44              -           16.2              -
concentrate                                                                     
processed by third                                                            
party                                                                           
--------------------------------------------------------------------------------
TOTAL KAZAKHMYS own           1,416          1,593           24.4           25.2
concentrate                                                                     
--------------------------------------------------------------------------------
Purchased                       268             14           19.4           21.4
concentrate                                                                     
--------------------------------------------------------------------------------
TOTAL KAZAKHMYS own           1,684          1,607           23.6           25.2
and purchased                                                                   
concentrate                                                                     
--------------------------------------------------------------------------------



Zinc and Precious Metals Processing

------------------------------------------------------------------------------
                    Zinc concentrate     Zinc in        Silver        Gold      
                        produced       concentrate                              
                      2005    2004    2005    2004   2005   2004   2005   2004
                        kt      kt       %       %    koz    koz    koz    koz
------------------------------------------------------------------------------
Zhezkazgan No.1          -       -       -       -      -      -      -      -
Zhezkazgan No.2          -       -       -       -      -      -      -      -
Satpaev                  -       -       -       -      -      -      -      -
------------------------------------------------------------------------------
TOTAL ZHEZKAZGAN         -       -       -       -      -      -      -      -
COMPLEX                                                                       
------------------------------------------------------------------------------
Balkhash                 -       -       -       -      -      -      -      -
------------------------------------------------------------------------------
TOTAL BALKHASH           -       -       -       -      -      -      -      -
COMPLEX                                                                       
------------------------------------------------------------------------------
Orlovskoe              106      92    43.2    45.5  115.7  101.8    1.1    1.0
Belousovskoe            11      18    43.6    42.4  154.5  157.3    1.7    1.4
Irtyshskoe              17      15    37.3    40.9  109.7  110.4    0.5    0.7
Nikolaevskoe            53      25    38.1    40.2  100.5   93.2    0.7    0.7
Karagaily               15       -    36.0       -  194.3      -   16.2      - 
YSR (KazZinc)           15       -    34.4       -      -      -      -      -
Artemjevka              14       -    51.1       -      -      -      -      -
(KazZinc)                                                                     
------------------------------------------------------------------------------
TOTAL EAST REGION      231     150    40.9    43.8  119.0  107.9    2.0    1.0
------------------------------------------------------------------------------
TOTAL KAZAKHMYS        231     15040.9 (1)43.8 (1)  119.0  107.9    2.0    1.0
------------------------------------------------------------------------------

(1) Production from own concentrators within East Region.



Copper Smelter/Refinery- copper cathodes production

----------------------------------------------------------------------------------
                    Concentrate smelted   Copper in concentrate   Copper cathodes  
                         2005      2004        2005       2004      2005     2004
                           kt        kt           %          %        kt       kt
----------------------------------------------------------------------------------
Own concentrate           667       687        33.8       34.4       227      235
Purchased                  31         3        25.4       20.5         8        1
concentrate                                                                  
Other (1)                 192       119         3.2        3.8         -        -
----------------------------------------------------------------------------------
TOTAL ZHEZKAZGAN COMPLEX                                                                      
                          890       809        26.9       29.8       235      236
----------------------------------------------------------------------------------
Own concentrate           706       966        16.5       18.4       112      170
Purchased                 232         1        18.5       22.3        40        2
concentrate                                                                  
Other (1)                 146       106         1.3        3.7         -        -
----------------------------------------------------------------------------------
TOTAL BALKHASH          1,084     1,073        14.9       16.9       152      172
----------------------------------------------------------------------------------
TOTAL KAZAKHMYS                                                              
(excluding tolling)     1,974     1,882        20.3       22.5       387      408
----------------------------------------------------------------------------------
Tolling                    11       117           -          -        10       20
----------------------------------------------------------------------------------
TOTAL KAZAKHMYS         1,985     1,999        20.3       22.4       397      428
(including tolling)                                                          
----------------------------------------------------------------------------------

(1) Includes materials recovered (slag, scrap, etc.) reprocessed at both
Zhezkazgan and Balkhash.


Copper Smelter/Refinery- copper rod and acid production

--------------------------------------------------------------------------------
                                   Copper rod                  Acid production       
                               2005           2004           2005           2004
                                 kt             kt             kt             kt
--------------------------------------------------------------------------------
Zhezkazgan                        9             49            245            259
Balkhash                          -              -              -              -
--------------------------------------------------------------------------------
TOTAL KAZAKHMYS                   9             49            245            259
--------------------------------------------------------------------------------




Zinc Smelter/Refinery- zinc metal production

-----------------------------------------------------------------------------
                       Zinc concentrate   Zinc in concentrate    Zinc metal    
                           smelted                                            
                         2005      2004      2005      2004     2005     2004
                           kt        kt         %         %       kt       kt
-----------------------------------------------------------------------------
TOTAL KAZAKHMYS                                                              
(all Balkhash)            186        77      41.2      44.6       51       18
-----------------------------------------------------------------------------


Precious metal production

--------------------------------------------------------------------------------
                                     Silver                         Gold             
                               2005           2004           2005           2004
                                koz            koz            koz            koz
--------------------------------------------------------------------------------
Kazakhmys                    20,426         17,715            101             54
Tolling                          90              3             45             32
--------------------------------------------------------------------------------
TOTAL KAZAKHMYS                                                                 
(including tolling)          20,516         17,718            146             86
--------------------------------------------------------------------------------



Other production - Kazakhmys

--------------------------------------------------------------------------------
                                                         2005               2004
--------------------------------------------------------------------------------
Electricity power space (MJ)                            6,441              5,966
Heating power (KHcal)                                   4,013              4,014
Enamel wire (t)                                           506                412
Lead dust (t)                                          13,697             13,727
--------------------------------------------------------------------------------


KAZAKHMYS SALES


--------------------------------------------------------------------------------
                                     2005                          2004             
--------------------------------------------------------------------------------
                             kt (1)          $'000         kt (1)          $'000
--------------------------------------------------------------------------------
Copper cathode                  362      1,377,199            366        911,523
Copper rod                        8         26,535             48        134,658
--------------------------------------------------------------------------------
TOTAL COPPER SALES              370      1,403,734            414      1,046,181
--------------------------------------------------------------------------------
Zinc metal in                    17         14,986             18          9,262
concentrate                                                                     
Zinc metal                       52         64,326              6          5,724
Silver (koz)                 20,174        147,267         17,619        115,225
Gold (koz)                       84         37,722             42         14,393
--------------------------------------------------------------------------------


(1) Kilotonne unless stated



Average Realised Prices

                                                                               
----------------------------------------------------------------------------------
                                                       2005                  2004
----------------------------------------------------------------------------------
Copper ($/t)                                          3,794                 2,527
Zinc ($/t)                                            1,231                   914
Silver ($/oz)                                          7.30                  6.54
Gold ($/oz)                                             449                   344
----------------------------------------------------------------------------------





MKM PRODUCTION AND SALES


---------------------------------------------------------------------------------
                                                      2005                      
---------------------------------------------------------------------------------
                                                Production                  Sales
                                                         t                      t
---------------------------------------------------------------------------------
Wire rod                                            88,913                 88,047
Drawn wire                                          31,406                 31,321
---------------------------------------------------------------------------------
Total wire                                         120,319                119,368
---------------------------------------------------------------------------------
Pre-rolled                                           4,942                  4,907
Sheets                                              12,176                 11,695
Strips                                              41,563                 41,264
---------------------------------------------------------------------------------
Total flat                                          58,681                 57,866
---------------------------------------------------------------------------------
Tubes                                               19,008                 19,151
Bars                                                21,419                 21,622
---------------------------------------------------------------------------------
Total tubes and bars                                40,427                 40,773
---------------------------------------------------------------------------------
TOTAL MKM                                          219,427                218,007
---------------------------------------------------------------------------------




                                    Glossary

AGM or Annual General Meeting

The Annual General Meeting of the Company which is scheduled to be held on
Tuesday 23 May 2006 at 2.00 pm in the London Marriott Hotel, County Hall,
Westminster Bridge Road, London SE1 7PB


Apro
Apro Limited, a company incorporated in England, and a related party of the
Group


bcm:t
Bank cubic metres excavated to recover one tonne of coal


Board or Board of Directors
The board of directors of the Company


Capital Employed
The aggregate of equity attributable to shareholders, minority interests and
borrowings


Cash cost of copper after by-products
The US dollar cash cost of copper per tonne after revenues arising from
by-products


Company or Kazakhmys
Kazakhmys PLC


Directors
The directors of the Company


Dollar or $
United States dollars, the currency of the United States of America


EBITDA
Earnings before interest, tax, depreciation and amortisation


EPS
Earnings per share



EPS based on Underlying Profit
Earnings per share based on Underlying Profit is calculated by dividing
Underlying Profit by the weighted average number of ordinary shares of 20 pence
each outstanding during the year.


EPT
Excess profits tax


Free Cash Flow
Net cash flows from operating activities less sustaining capital expenditure on
tangible and intangible assets and investment in mine stripping costs


FTSE 100
Financial Times Stock Exchange top 100 companies


g/t
grammes per tonne


The Group
Kazakhmys PLC and its subsidiary companies


HSE Committee
Health Safety and Environment Committee


IASB
International Accounting Standards Board


IFRIC
International Financial Reporting Interpretations Committee


IFRS
International Financial Reporting Standards


Kazakh Mining business
The Kazakh mining operations, which involve the processing and sale of copper
and other metals


Kazakhmys LLC
Kazakhmys Corporation LLC, the Group's principal operating subsidiary in
Kazakhstan


Kazakhstan
The Republic of Kazakhstan


kbcm
Thousand bank cubic metres


koz
Thousand ounces


kt
Thousand tonnes


Listing
The listing of the Company's ordinary shares on the London Stock Exchange on 12
October 2005


LME
London Metals Exchange


LSE
London Stock Exchange


MKM
Mansfelder Kupfer und Messing GmbH, the Group's operating subsidiary in the
Federal Republic of Germany


MJ
Megajoules of electric power


ROCE
Return On Capital Employed, defined as profit before taxation, finance items and
negative goodwill over capital employed


$/t , $/tonnes
US dollars per tonne





Special Items
Those items which are non-recurring or variable in nature and which do not
impact the underlying trading performance of the business. Special Items are set
out in note 2(a) to the financial information


t
tonnes


Tenge or KZT
The official currency of the Republic of Kazakhstan


Underlying Profit
Profit for the year after adding back items which are non-recurring or variable
in nature and which do not impact the underlying trading performance of the
business and their resultant tax and minority interest effects.








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            The company news service from the London Stock Exchange