Information  X 
Enter a valid email address

Kazakhmys PLC (KAZ)

  Print      Mail a friend       Annual reports

Tuesday 19 September, 2006

Kazakhmys PLC

Interim Results - Part 2

Kazakhmys PLC
19 September 2006

Notes to the interim consolidated financial statements
for the six months ended 30 June 2006

1. General information

Kazakhmys PLC (the 'Company', formerly KCC International Plc) is a public
limited company incorporated in the United Kingdom of Great Britain and Northern
Ireland. The Company's registered address is 6th Floor, Cardinal Place, 100
Victoria Street, London, SW1E 5JL, United Kingdom. The Group comprises the
Company and its consolidated subsidiaries as set out below.

The Group's operations are primarily conducted through the Company's principal
subsidiary, Kazakhmys Corporation LLC ('Kazakhmys LLC'), in which the Company
acquired a 97.40% interest as a result of a share exchange representing a
combination of businesses under common control on 23 November 2004. The share
exchange is described in Note 2(b). Subsequent to this share exchange, the
Company's interest in Kazakhmys LLC increased from 97.40% to 98.68% as a result
of a further share exchange with Kinton Trade Limited, a minority shareholder in
Kazakhmys LLC, on 26 September 2005 (refer Note 14(b)). As the result of
additional capital contributions to the charter capital of Kazakhmys LLC during
the six months ended 30 June 2006, the Company's interest in Kazakhmys LLC
increased from 98.68% as at 31 December 2005 to 99.08% as at 30 June 2006 (refer
Note 14(e)).

The Group operates in the mining industry. Its major business is the mining and
processing of copper ore into cathode copper and copper wire, and the refining
and sale of precious metals and other by-products of its copper mining process.
It also provides other services to various external customers.

These interim consolidated financial statements are for the six months ended 30
June 2006. The information for the year ended 31 December 2005 does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. A copy of the statutory accounts for that year, which were prepared in
accordance with International Financial Reporting Standards (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, has been
delivered to the Register of Companies. The auditor's report under Section 235
of the Companies Act 1985 in relation to those accounts was unqualified.

2. Basis of preparation

(a) Interim Consolidated Financial Statements

The interim consolidated financial statements have been prepared in accordance
with IAS 34, "Interim Financial Reporting". The interim consolidated financial
statements do not include all the information and disclosures required in the
annual financial statements, and should be read in conjunction with the Group's
annual financial statements for the year ended 31 December 2005.

(b) 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 (refer to Note 14) 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 interim consolidated financial statements, which present the
results of the Group as if the Company had always been the parent company of
Kazakhmys LLC.

(c) Comparative figures

Where a change in the presentational format of the interim consolidated
financial statements has been made during the period, comparative figures have
been restated accordingly.

3. Significant accounting policies

The interim consolidated financial statements have been prepared under 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
at that date, and derivative financial instruments which have been measured at
fair value. The interim consolidated financial statements are presented in US
dollars ('$') and all monetary amounts are rounded to the nearest million ('$
million') except when otherwise indicated.

The accounting policies adopted are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 31
December 2005.

In preparing the consolidated financial statements the Group has adopted all the
extant accounting standards issued by the IASB and all the extant
interpretations issued by the IFRIC as at 30 June 2006. The Group has not
applied IFRS 7 'Financial Instruments: Disclosures' and consequential amendments
IAS 1 'Presentation of Financial Statements' which are effective for annual
periods beginning on or after 1 January 2007.

The following foreign exchange rates vs. the US dollar have been used in the
preparation of the interim consolidated financial statements:


                                   30 June 2006    30 June 2005  31 December 2005        
                                  --------------  --------------  --------------
                                  Spot   Average  Spot   Average  Spot   Average
                                 -----------------------------------------------
Kazakhstan tenge                 118.69  127.10  135.26  131.20  133.77  132.88 
Euro                               0.80    0.81    0.84    0.78    0.84    0.80   
UK pound sterling                  0.55    0.56    0.55    0.53    0.58    0.55   

Where applicable, comparatives have been adjusted on the same basis as current
period figures. The material adjustments to the comparatives are the
reclassification within segment information of corporate head office costs,
assets and liabilities from Kazakh Mining to unallocated items.

4. Segment information

Segment information is presented in respect of the Group's primary basis of
segmentation in business segments, which are based on the Group's management and
internal reporting.

Segments 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 corporate head office assets and liabilities, income
taxes payable, deferred taxes and dividends payable/receivable.

The Group's activities principally relate to:

•  Kazakh Mining business which involves 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.

(a) Business segments

The Kazakh Mining business, which involves 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 substantially
all the copper ore it processes and utilises most of 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% of total revenues (both external
and internal) and the related assets are less than 10% of total assets.

The UK operation consists of two functions:

•            a trading function responsible for the purchases of products from
the Kazakh Mining operations, application of an appropriate mark-up and then
onward sale to third parties; and

•            a corporate head office function.

For the purposes of business segmental reporting, the trading function is
regarded as a sales function on behalf of the Kazakh Mining business and
consequently the assets and liabilities related to those trading operations,
i.e. trade creditors and trade receivables, are included with the Kazakh Mining
business segment. The expenses, assets and liabilities of the corporate head
office function are disclosed separately as unallocated items.

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 business and, therefore, from 1
January 2005 the Group has operated in two distinct business segments. Segmental
information in respect of these two business segments for the periods ended 30
June 2006, 30 June 2005 and 31 December 2005 is presented below.

(i) Income statement information

                       Six months ended      Six months ended          Year ended      
                         30 June 2006          30 June 2005         31 December 2005   
                    --------------------- --------------------- -----------------------                                 
                    Kazakh   MKM    Total  Kazakh  MKM    Total  Kazakh   MKM    Total 
                    Mining                 Mining                Mining                
---------------------------------------------------------------------------------------
$ million                                                                              
Sales to external   1,520.9 758.9  2,279.8 791.6  410.5  1,202.1 1,740.9 856.6  2,597.5
customers                                                                              
---------------------------------------------------------------------------------------
Gross profit        1,073.0  53.4  1,126.4 439.0   38.6    477.6 1,024.8  66.1  1,090.9
Operating costs       (99.9)(23.4)  (123.3)(91.8) (23.0)  (114.8) (184.6)(44.3)  (228.9)
---------------------------------------------------------------------------------------
Segment results       973.1  30.0  1,003.1 347.2   15.6    362.8   840.2  21.8    862.0  
Unallocated                          (18.6)                 (3.3)                 (19.5) 
corporate costs                                                                        
---------------------------------------------------------------------------------------
Profit before                        984.5                 359.5                  842.5  
taxation, finance                                                                      
items and negative                                                                     
goodwill                                                                               
Net finance (costs)                  (35.1)                 (0.5)                   5.6    
/income                                                                                
Recognition of                         6.5                     -                      -      
negative goodwill                                                                      
---------------------------------------------------------------------------------------
Profit before                        955.9                 359.0                  848.1  
taxation                                                                               
Income tax expense                  (317.0)               (126.9)                (297.3)
---------------------------------------------------------------------------------------
Profit for the                       638.9                 232.1                  550.8  
period                                                                                 
---------------------------------------------------------------------------------------



(ii) Balance sheet information

                       As at 30 June 2006          As at 30 June 2005          As at 31 December 2005     
                   -------------------------   -------------------------- ----------------------------
$ million          Kazakh    MKM       Total   Kazakh    MKM       Total   Kazakh    MKM       Total  
                   Mining                      Mining                      Mining    
------------------    ------  ------    ------    ------  ------    ------    ------  ------    ------                  
ASSETS                                                                                                
Tangible and       1,900.1   167.8   2,067.9   1,465.7   175.3   1,641.0   1,598.1   165.8   1,763.9  
intangible assets                                                                                     
Non-current            4.1     3.2       7.3       2.8     3.0       5.8       2.7     3.1       5.8  
investments                                                                                           
Operating assets     712.3   387.8   1,100.1     360.9   378.3     739.2     593.1   220.0     813.1  
(1)                                                                                                   
Current              823.8       -     823.8     313.5       -     313.5     356.5       -     356.5  
investments                                                                                           
Cash and cash         96.8    18.6     115.4      14.4    25.8      40.2      13.1     2.6      15.7  
equivalents           
------------------    ------  ------    ------    ------  ------    ------    ------  ------    ------                  
                                                             
Segment assets     3,537.1   577.4   4,114.5   2,157.3   582.4   2,739.7   2,563.5   391.5   2,955.0  
------------------    ------  ------    ------    ------  ------    ------    ------  ------    ------
Unallocated                                                                                           
assets:                                                                                               
Non-current assets                       3.2                         0.6                         0.8  
- Corporate                                                                                           
Current assets -                        21.6                       112.3                        13.3  
Corporate                                                                                             
Dividends                                  -                           -                       164.5  
receivable -                                                                                          
Corporate                                                                                             
Cash and cash                          466.8                       128.8                       506.3  
equivalents -                                                                                         
Corporate                                                                                             
Elimination                           (194.0)                     (291.0)                     (359.9) 
------------------    ------  ------    ------    ------  ------    ------    ------  ------    ------
TOTAL ASSETS                         4,412.1                     2,690.4                     3,280.0  
------------------    ------  ------    ------    ------  ------    ------    ------  ------    ------
LIABILITIES                                                                                           
Employee benefits     82.9     8.9      91.8      69.4    10.1      79.5      67.3     7.3      74.6  
and provisions                                                                                        
Operating            145.9    20.3     166.2     107.5    36.2     143.7     273.5    29.6     303.1  
liabilities (2)                                                                                       
Borrowings               -   378.6     378.6     204.2   191.5     395.7      41.6   202.8     244.4  
------------------    ------  ------    ------    ------  ------    ------    ------  ------    ------
Segment              228.8   407.8     636.6     381.1   237.8     618.9     382.4   239.7     622.1  
liabilities           
------------------    ------  ------    ------    ------  ------    ------    ------  ------    ------                  
                                                             
Unallocated                                                                                           
liabilities:                                                                                          
Other payables -                        26.9                       119.7                        20.1  
Corporate                                                                                             
Deferred tax                           280.2                       232.7                       260.9  
liability - Group                                                                                     
Income tax payable                     285.5                       108.8                       107.6  
- Group                                                                                               
Dividend payable -                       1.9                         1.1                         3.1  
Group                                                                                                 
Elimination                           (194.0)                     (291.0)                     (359.9) 
------------------    ------  ------    ------    ------  ------    ------    ------  ------    ------
TOTAL LIABILITIES                    1,037.1                       790.2                       653.9  
------------------    ------  ------    ------    ------  ------    ------    ------  ------    ------

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

(2) Operating liabilities include trade and other payables and dividends payable
by Kazakhmys LLC to the Company.

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

                           Six months ended 30 June 2006           Six months ended 30 June 2005      
                        ------------------------------------- -----------------------------------
$ million               Kazakh    MKM     Corporate     Total Kazakh     MKM     Corporate   Total  
                        Mining          unallocated           Mining           unallocated 
-------------------      ------- -------     -------   ------- ------- -------     ------- -------                      
Profit before            973.1    30.0       (18.6)    984.5   347.2    15.6        (3.3)  359.5  
taxation, finance                                                                                 
items and negative                                                                                
goodwill                                                                                          
Special items:                                                     -       -           -          
(Less)/add: write        (10.2)      -           -     (10.2)    0.3       -           -     0.3  
(back)/off of                                                                                     
property, plant and                                                                               
equipment                                                                                         
Add/(less): loss/          3.6    (0.1)        0.5       4.0    10.6       -           -    10.6  
(gain) on disposal of    
property, plant and                                                                               
equipment                                                                                         
-------------------      ------- -------     -------   ------- ------- -------     ------- -------                      
                                                  
Profit before            966.5    29.9       (18.1)    978.3   358.1    15.6        (3.3)  370.4  
taxation, finance                                                                                 
items and negative                                                                                
goodwill excluding                                                                                
special items                                                                                     
Add: depreciation and     91.4    10.4         0.1     101.9   101.4    10.3           -   111.7  
depletion                                                                                         
Add: amortisation          0.9     0.2           -       1.1     0.6     0.1           -     0.7  
-------------------      ------- -------     -------   ------- ------- -------     ------- -------
EBITDA excluding       1,058.8    40.5       (18.0)  1,081.3   460.1    26.0        (3.3)  482.8  
special items            
-------------------      ------- -------     -------   ------- ------- -------     ------- -------                      
                                                  

 
                                            Year ended 31 December 2005 
                                      -------------------------------------------
$ million                               Kazakh        MKM     Corporate      Total  
                                        Mining              unallocated   
----------------------------          ---------- ----------  ---------- ----------                                      
Profit before taxation, finance items    840.3       21.7       (19.5)     842.5  
and negative goodwill                                                             
Special items:                               -                      -             
(Less)/add: write (back)/off of            6.8          -           -        6.8  
property, plant and equipment                                                     
Add/(less): loss/(gain) on disposal        8.6       (4.0)          -        4.6  
of property, plant and equipment      
----------------------------          ---------- ----------  ---------- ----------                                      
     
Profit before taxation, finance items    855.7       17.7       (19.5)     853.9  
and negative goodwill excluding                                                   
special items                                                                     
Add: depreciation and depletion          196.5       21.0         0.2      217.7  
Add: amortisation                          1.5        0.4           -        1.9  
----------------------------          ---------- ----------  ---------- ----------
EBITDA excluding special items         1,053.7       39.1       (19.3)   1,073.5  
----------------------------          ---------- ----------  ---------- ----------

         

(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.

(iv) Net liquid funds/(debt) by business segments

                                   As at 30 June 2006                    As at 30 June 2005                  
                          -----------------------------------  ------------------------------------
$ million                 Kazakh  MKM (1) Corporate     Total   Kazakh    MKM (1)  Corporate  Total  
                          Mining        unallocated             Mining           unallocated  
                                                                                        (2)                 
-------------------       ------- -------     -------   ------- -------   -------  -------   -------                    
Cash and cash equivalents  96.8    18.6       466.8     582.2    14.4      25.8    128.8     169.0  
Current investments       823.8       -           -     823.8   313.5         -        -     313.5  
Borrowings                    -  (378.5)         -     (378.5) (204.2)   (191.0)  (100.0)   (495.2) 
                                                                                                    
Inter-segment borrowings      -   194.0           -     194.0   100.0     191.0        -     291.0  
(1) (2)                                                                                             
Finance leases                -    (0.1)          -      (0.1)      -      (0.5)       -      (0.5) 
Redeemable preference         -       -           -         -       -         -     (0.1)     (0.1) 
shares                    
-------------------       ------- -------     -------   ------- -------   -------  -------   -------                    
Net liquid funds/(debt)   920.6   (166.0)     466.8   1,221.4   223.7      25.3     28.7     277.7  
-------------------       ------- -------     -------   ------- -------   -------  -------   -------


 
                                                As at 31 December 2005 
                                      -------------------------------------------
$ million                             Kazakh     MKM (1)    Corporate      Total  
                                      Mining              unallocated 
----------------------------          ---------- ---------- ----------  ----------          
Cash and cash equivalents                 13.1        2.6       506.3      522.0  
Current investments                      356.5          -           -      356.5  
Borrowings                               (41.6)    (202.6)          -     (244.2) 
Inter-segment borrowings (1) (2)             -      195.4           -      195.4  
Finance leases                               -       (0.2)          -       (0.2) 
Redeemable preference shares                 -          -           -          -  
----------------------------          ---------- ----------  ---------- ----------
Net liquid funds/(debt)                  328.0       (4.8)      506.3      829.5  
----------------------------          ---------- ----------  ---------- ----------

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

(2) Borrowings of Kazakh Mining include amounts borrowed from the Corporate head
office as at 30 June 2005.

(v) Capital expenditure, depreciation, write (back)/off and impairment losses by
business segments
                            Six months ended 30 June 2006       Six months ended 30 June 2005      
                         ---------------------------------- -----------------------------------
$ million                Kazakh    MKM   Corporate   Total   Kazakh    MKM   Corporate   Total  
-------------------      Mining        unallocated           Mining        unallocated 
                         ------- -------   -------  ------- ------- -------    -------  -------       
Property, plant and      159.0     3.0         3.0   165.0   137.0     7.1         0.5   144.6  
equipment                                                                                       
Mine stripping costs       5.9       -           -     5.9     7.0       -           -     7.0  
Intangible assets          0.7       -           -     0.7     3.4       -         0.4     3.8  
-------------------      ------- -------     ------- ------- ------- -------     ------- -------
Capital expenditure      165.6     3.0         3.0   171.6   147.4     7.1         0.9   155.4  
-------------------      ------- -------     ------- ------- ------- -------     ------- -------
Depreciation and          91.4    10.4         0.1   101.9   101.4    10.3           -   111.7  
depletion                                                                                       
Amortisation               0.9     0.2           -     1.1     0.6     0.1           -     0.7  
-------------------      ------- -------     ------- ------- ------- -------     ------- -------
Depreciation, depletion   92.3    10.6         0.1   103.0   102.0    10.4           -   112.4  
and amortisation         
-------------------      ------- -------     ------- ------- ------- -------     ------- -------                        
                                              
Write (back)/off of       (7.0)    1.3           -    (5.7)    3.6       -           -     3.6  
assets and impairment    
losses                                                                                          
-------------------      ------- -------     ------- ------- ------- -------     ------- -------                        
                                              

 

 
                                            Year ended 31 December 2005   
                                      -------------------------------------------
$ million                               Kazakh        MKM   Corporate      Total  
----------------------------            Mining            unallocated 
                                      ---------- ---------- ----------  ----------          
Property, plant and equipment            320.7       12.5         0.5      333.7  
Mine stripping costs                      26.5          -           -       26.5  
Intangible assets                          4.2        1.0           -        5.2  
----------------------------          ---------- ----------  ---------- ----------
Capital expenditure                      351.4       13.5         0.5      365.4  
----------------------------          ---------- ----------  ---------- ----------
Depreciation and depletion               196.5       21.0         0.2      217.7  
Amortisation                               1.5        0.4           -        1.9  
----------------------------          ---------- ----------  ---------- ----------
Depreciation, depletion and              198.0       21.4         0.2      219.6  
amortisation                          
----------------------------          ---------- ----------  ---------- ----------                                      
Write (back)/off of assets and            11.4          -         0.4       11.8  
impairment losses                     
----------------------------          ---------- ----------  ---------- ----------                                      
     

(b) Revenues by product
$ million                                  Six months  Six months Year ended
                                                ended    ended 30         31        
                                              30 June        June   December  
                                                 2006        2005       2005      
-----------------------------                 ---------   ---------  ---------
Kazakh Mining                                                                 
Copper cathodes                               1,060.2       595.5    1,377.2  
Silver in granules                              117.8        77.2      147.3  
Zinc metal                                      102.4        46.8       64.3  
Copper rods                                      98.6        20.1       26.5  
Zinc concentrate                                 59.1         1.6       15.0  
Gold bullion                                     28.2        14.2       37.7  
Other by-products                                14.7        10.0       14.5  
Other revenue                                    39.9        26.2       58.4  
-----------------------------                 ---------   ---------  ---------
                                              1,520.9       791.6    1,740.9  
-----------------------------                 ---------   ---------  ---------
MKM                                                                           
Wire                                            416.5       178.5      389.1  
Sheet steel and steel strips                    190.6       125.3      252.3  
Tubes and bars                                  119.5        79.4      167.3  
Metal trade                                      32.3        27.3       47.9  
-----------------------------                 ---------   ---------  ---------
                                                758.9       410.5      856.6  
-----------------------------                 ---------   ---------  ---------
Total revenues                                2,279.8     1,202.1    2,597.5  
-----------------------------                 ---------   ---------  ---------

Provisional pricing

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

For the six months ended 30 June 2006 gains of $57.5 million (six months ended
30 June 2005: $8.4 million, year ended 31 December 2005: $52.4 million) relating
to the difference between provisional pricing and final pricing have been
included within revenues.

At 30 June 2006, copper sales totalling 2,496 tonnes (30 June 2005: 15,375
tonnes, 31 December 2005: 20,881 tonnes) remained to be finally priced and were
recorded at that date at an average price of $8,474 per tonne (30 June 2005:
$3,323 per tonne, 31 December 2005: $4,342 per tonne) based on provisional
invoices.

The loss on sales contracts of $1.6 million arising in July 2006 and relating to
contracts previously priced in June 2006, will be recognised in the second half
of the year ended 31 December 2006.

(c) Revenues by destination
                                              Six months ended 30 June 2006          
                                         ---------------------------------------               

$ million                                 Europe    China     Other       Total  
----------------------------             -------   -------   -------     -------
Sales to third parties                   1,659.2     302.5     318.1   2,279.8  
----------------------------               -------   -------   -------   -------
                                                                                
                                             Six months ended 30 June 2005          
                                         ---------------------------------------               
$ million                                 Europe     China     Other      Total  
----------------------------              -------   -------   -------    -------
Sales to third parties                     607.4     423.3     171.4   1,202.1  
----------------------------               -------   -------   -------   -------
                                                                                
                                              Year ended 31 December 2005            
                                         ---------------------------------------               
$ million                                 Europe    China      Other     Total  
----------------------------              -------   -------   -------   -------
Sales to third parties                     995.1   1,303.0     299.4   2,597.5  
----------------------------               -------   -------   -------   -------



5. Write back/(off) of assets and impairment losses

$ million                                  Six months   Six months Year ended
                                                ended     ended 30         31        
                                              30 June    June 2005   December  
                                                 2006                    2005      
-----------------------------                 ---------   ---------  ---------                                
Write back/(off) of property, plant and          10.2        (0.3)      (6.8) 
equipment                                                                     
Release of provisions for/(provisions             1.2        (2.7)      (3.8) 
against) prepayments and other current                                        
assets                                                                        
Impairment of investments                           -           -       (1.8) 
Write-off of goodwill                               -        (0.4)      (0.4) 
Provisions against trade and other               (1.1)       (0.2)      (0.3) 
receivables                                                                   
(Provisions against)/release of provisions       (4.6)          -        1.3  
for obsolete inventories                      
-----------------------------                 ---------   ---------  ---------                                
                                                  5.7        (3.6)     (11.8) 
-----------------------------                 ---------   ---------  ---------                                

6. Finance income and finance costs
$ million                                  Six months   Six months Year ended
                                                ended     ended 30         31        
                                              30 June    June 2005   December  
                                                 2006                    2005      
-----------------------------                 ---------   ---------  ---------
Finance income:                                                               
Interest income                                  34.0        10.0       30.6  
Foreign exchange gains                           28.9        43.8       56.8  
-----------------------------                 ---------   ---------  ---------
Total finance income                             62.9        53.8       87.4  
-----------------------------                 ---------   ---------  ---------
Finance costs:                                                                
Interest expense                                 (1.7)       (6.3)      (8.8) 
Interest on employee obligations                 (1.0)       (0.4)      (2.0) 
Unwinding of discount on provisions              (2.6)       (2.1)      (3.2) 
-----------------------------                 ---------   ---------  ---------
Finance costs before foreign exchange losses     (5.3)       (8.8)     (14.0) 
Foreign exchange losses                         (92.7)      (45.5)     (67.8) 
-----------------------------                 ---------   ---------  ---------
Total finance costs                             (98.0)      (54.3)     (81.8) 
-----------------------------                 ---------   ---------  ---------

7. Business combination

On 10 February 2006, the Group acquired 90% of ZhREK JSC, a power transmission
company in Kazakhstan, for $2.3 million. The fair value of the net identifiable
assets was $9.7 million, minority interests were $0.9 million and negative
goodwill on acquisition was $6.5 million. Upon acquisition, the Group acquired
cash of $0.3 million.



8. Income tax

(a) Income tax expense

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

$ million                                   Six months Six months Year ended
                                                 ended   ended 30         31        
                                               30 June  June 2005   December  
                                                 2006                   2005      
-----------------------------                 ---------   ---------  ---------
Current income tax                                                            
Corporate income tax - current period (UK)        0.2         1.0        2.2  
Corporate income tax - current period           281.0       137.9      269.8  
(overseas)                                                                    
Corporate income tax - prior periods             15.0         1.3        1.3  
Excess profits tax                               24.3        13.8       27.0  
-----------------------------                 ---------   ---------  ---------
                                                320.5       154.0      300.3  
-----------------------------                 ---------   ---------  ---------
Deferred income tax                                                           
Corporate income tax - current period            (4.5)      (26.1)      (8.1) 
Excess profits tax                                1.0        (1.0)       5.1  
-----------------------------                 ---------   ---------  ---------
                                                 (3.5)      (27.1)      (3.0) 
-----------------------------                 ---------   ---------  ---------
Income tax expense                              317.0       126.9      297.3  
-----------------------------                 ---------   ---------  ---------

(b) Income tax reconciliation

The tax assessed on the profit for the period 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:

$ million                                  Six months  Six months Year ended
                                                ended    ended 30         31        
                                              30 June   June 2005   December  
                                                 2006                   2005      
-----------------------------                 ---------   ---------  ---------
Profit before taxation                          955.9       359.0      848.1  
-----------------------------                 ---------   ---------  ---------
At statutory income tax rate of 30%             286.8       107.7      254.4  
Underprovided in previous periods                15.0         1.3        1.3  
Unrecognised tax losses                           5.6         2.4        4.7  
Effect of higher tax rate in Germany              1.4         1.0        1.0  
Change in the tax rate in Germany                   -           -       (2.7) 
Unremitted overseas earnings                      6.8         4.8       11.9  
Non deductible expenses/(non taxable                                          
income):                                                                      
Non taxable income of zinc plant                (26.5)       (4.0)      (8.3) 
Recognition of negative goodwill                 (2.0)          -          -  
Non deductible expenses                           4.6         0.9        2.9  
Excess profits tax                               25.3        12.8       32.1  
-----------------------------                 ---------   ---------  ---------
At effective income tax rate of 33.2%           317.0       126.9      297.3  
(30.06.05: 35.3%, 31.12.05: 35.1%)            
-----------------------------                 ---------   ---------  ---------                                

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% (30 June 2005 and 31 December 2005: 35.98%) and relates to German
corporate income tax and trade tax. The Directors have estimated the tax expense
for the six months period ended 30 June 2006 based on the projected tax rate for
the Group for the 12 months to 31 December 2006.

Excess profits tax is levied on profitable subsoil contracts where the Internal
Rate of Return for the current period exceeds 20%. The effective rate for excess
profits tax for those subsoil contracts liable to this tax is 36% (30 June 2005:
35%, 31 December 2005: 37%).



9. 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 from 1 January 2004 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.

(a) Basic and diluted EPS

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

The following reflects the income and share data used in the EPS computations.

$ million                               Six months    Six months    Year ended   
                                             ended ended 30 June   31 December  
                                      30 June 2006          2005          2005         
-----------------------------            ---------     ---------     ---------                                         
Net profit attributable to equity            632.7         226.1         538.8  
shareholders of the Company                  
-----------------------------            ---------     ---------     ---------                                         
                                                                                  
                                         Six months    Six months    Year ended   
                                              ended ended 30 June   31 December  
                                       30 June 2006         2005          2005         
                                                No.           No.           No.          
-----------------------------             ---------     ---------     ---------                                     
Number of shares                                                                  
Weighted average number of ordinary     467,474,200   403,725,750   418,105,627  
shares of 20 pence each for EPS              
calculation                                                                       
-----------------------------             ---------     ---------     ---------                                     
EPS - basic and diluted                       $1.35         $0.56         $1.29  
-----------------------------             ---------     ---------     ---------

(b) EPS based on Underlying Profit

The Group's Underlying Profit is the profit for the period 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 weighted average
number of ordinary shares of 20 pence each outstanding during the period. The
Directors believe EPS based on Underlying Profit provides a more consistent
measure for comparing the underlying trading performance of the Group.

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:

$ million                                   Six months   Six months    Year ended   
-----------------------------                   ended ended 30 June   31 December  
                                         30 June 2006         2005          2005         
                                            ---------     ---------     ---------    
Net profit attributable to equity              632.7         226.1         538.8  
shareholders of the Company                                                       
Special items:                                                                    
Recognition of negative goodwill                (6.5)            -             -  
Write (back)/off of property, plant and        (10.2)          0.3           6.8  
equipment                                                                         
Loss on disposal of property, plant and          4.0          10.6           4.6  
equipment                                                                         
Tax effect of special items                     (0.8)         (0.2)         (0.5) 
Minority interest effect of special              0.1          (0.1)          0.1  
items                                        
-----------------------------                ---------     ---------     ---------                                     
Underlying Profit                              619.3         236.7         549.8  
-----------------------------                ---------     ---------     ---------

                                          Six months    Six months    Year ended   
                                               ended ended 30 June   31 December  
                                        30 June 2006          2005          2005         
                                                No.             No.           No.          
-----------------------------                ---------     ---------     ---------                                      
Weighted average number of ordinary      467,474,200   403,725,750   418,105,627  
shares of 20 pence each for EPS based on     
Underlying Profit calculation                
-----------------------------                ---------     ---------     ---------                                      
                                   
EPS based on Underlying Profit - basic         $1.32         $0.59         $1.31  
and diluted                                  
-----------------------------                ---------     ---------     ---------                                     



10. 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 six months ended 30 June 2006 and 2005, and the year ended
31 December 2005 are as follows:

                                                          Per share      Amount    
                                                                  $   $ million 
-------------------------------------                       --------   --------                   
Six months ended 30 June 2006                                                  
Declared by the Company:                                                       
Final dividend in respect of year ended 31 December 2005      0.36      168.3  
(sourced from 2005 earnings)                                
-------------------------------------                       --------   --------                   
Six months ended 30 June 2005                                                  
Declared by Kazakhmys LLC:                                                     
Interim dividend payable to former shareholders (sourced      0.13       52.1  
from 2004 earnings)                                         
-------------------------------------                       --------   --------                   
Year ended 31 December 2005                                                    
Declared by the Company:                                                       
Interim dividend in respect of year ended 31 December         0.27      110.0  
2005 (sourced from 2004 earnings)                                              
Declared by Kazakhmys LLC:                                                     
Interim dividend payable to former shareholders (sourced      0.13       52.1  
from 2004 earnings)                                         
-------------------------------------                       --------   --------                   
                                                              0.40      162.1  
-------------------------------------                       --------   --------                   

The dividends shown above are those that have been declared and paid 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.

Dividends declared by Kazakhmys LLC

On 24 February 2005, Kazakhmys LLC paid an interim dividend in respect of the
year ended 31 December 2004 of $52.1 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 interim consolidated financial
statements as cash outflows for the Group, consistent with the pooling of
interests method of accounting.

Dividends 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. This interim dividend was sourced from 2004 earnings by way of
payment of the final dividend in respect of the year ended by 31 December 2004
by Kazakhmys LLC.

On 26 May 2006 the Company paid the final dividend of $168.3 million in respect
of the year ended 31 December 2005 to shareholders on the register as at 28
April 2006. This final dividend was sourced from 2005 earnings by way of payment
of the interim dividend in respect of the year ended by 31 December 2005 by
Kazakhmys LLC.

Dividend declared by the Company
                                                         Per share     Amount    
                                                                 $  $ million 
------------------------------------                      ---------  ---------                    
Declared by Directors on 18 September 2006 (not                               
recognised as a liability as at 30 June 2006)                                 
Interim dividend in respect of year ended 31 December        0.13       59.8  
2006                                                      
------------------------------------                      ---------  ---------                    

 



11. Property, plant and equipment

During the six months ended 30 June 2006, the Group acquired assets with a cost
of $165.0 million (30 June 2005: $144.6 million, 31 December 2005: $333.7
million), of which $95.4 million related to new and expansionary projects (30
June 2005: $50.0 million, 31 December 2005: $181.4 million).

Assets with a book value of $4.1 million were disposed of by the Group during
the six months ended 30 June 2006 (30 June 2005: $14.5 million, 31 December 2005
: $11.9 million) resulting in a loss on disposal of $4.0 million (30 June 2005:
$10.6 million, 31 December 2005: $4.6 million).

In addition to the above additions and disposals, during the six months ended 30
June 2006 property, plant and equipment:

•  increased by $216.0 million as a result of foreign exchange movements
   on translation;

•  increased by $10.2 million as a result of write backs;

•  decreased by $100.1 million as a result of depreciation expense.

12. Current investments

Current investments include bank deposits of $823.8 million (30 June 2005:
$313.0 million, 31 December 2005: $355.5 million) and available for sale
securities of nil (30 June 2005: $0.5 million, 31 December 2005: $1.0 million).
Bank deposits are deposits held at ABN Amro Bank, Citibank Kazakhstan, Bank
Turan Alem, HSBC Bank Kazakhstan and Halyk Bank.

13. Cash and cash equivalents
$ million                                       As at      As at       As at      
                                              30 June    30 June 31 December
                                                 2006       2005        2005       
-----------------------------                 ---------  ---------   ---------
Cash deposits with maturities of less than      435.4          -       496.7  
three months                                                                  
Cash at bank                                    146.6      168.8        25.1  
Petty cash                                        0.2        0.2         0.2  
-----------------------------                 ---------  ---------   ---------
                                                582.2      169.0       522.0  
-----------------------------                 ---------  ---------   ---------

Cash deposits are principally held at Credit Suisse First Boston, ABN Amro Bank
and HSBC Bank.

14. Share capital and reserves

(a) Authorised and allotted share capital

As described in the annual financial statements for the year ended 31 December
2005, 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.

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

                                                 Number  £ million  $ million 
-----------------------------                   ---------  ---------  ---------
Authorised                                                                     
As at 30 June 2006                          750,000,000      150.0          -  
-----------------------------                   ---------  ---------  ---------
Allotted and called up share capital (1)                                       
As at 30 June 2006                          467,474,200       93.5      173.3  
As at 30 June 2005                          403,725,750       80.7      151.1  
As at 31 December 2005                      467,474,200       93.5      173.3  
-----------------------------                   ---------  ---------  ---------

(1) Excluding the one special share of £1 each which was cancelled on 23 May
2005 (refer Note 14(c)).


The changes in share capital, including the impact of the share split are shown
below:
                                     Number of       Share      Share      Total    
                                        shares     capital    premium                                    
                                                 $ million  $ million  $ million
-------------------------               --------   --------   --------  --------                                        
Ordinary shares of £5 each issued                                               
and fully paid                                                                  
Issued to initial shareholders               2          -          -         -  
Issued pursuant to share exchange   16,149,028      151.1          -     151.1  
agreements (1)                          
-------------------------               --------   --------   --------  --------                                        
At 23 September 2005                16,149,030      151.1          -     151.1  
-------------------------               --------   --------   --------  --------
                                                                                
Share capital following the share                                              
split:                                                                         
                                                                               
Ordinary shares of 20 pence each                                               
issued and fully paid                                                          
Shares in issue at 23 September     403,725,750     151.1         -     151.1  
2005                                                                           
Issued pursuant to transaction with   5,314,425       1.9      32.5      34.4  
Kinton Trade Limited                                                           
Issued pursuant to the Company's     58,434,025      20.3     470.9     491.2  
Listing                                  
(net of expenses $57.2 million)                                                
-------------------------                --------  --------  --------  --------                                      
At 31 December 2005 and 30 June     467,474,200     173.3     503.4     676.7  
2006                                     
-------------------------                --------  --------  --------  --------                                      

(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

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.

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 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 at 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

At 30 June 2005 and 31 December 2005 the Company had 1 special share of £1 as
part of its authorised share capital. The special share was cancelled by special
resolution at the Company's Annual General Meeting on 23 May 2006.

(d) Reserves

(i) Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences
arising from the translation of the financial statements of Kazakhmys LLC and
MKM into US dollars.

(ii) Reserve fund

In accordance with legislation of the Republic of Kazakhstan the reserve fund
comprises prescribed transfers from retained earnings amounting to 15% of
Kazakhmys LLC's charter capital. During the six months ended 30 June 2006, the
reserve fund was increased by $28.2 million as a result of the contributions to
charter capital of Kazakhmys LLC (see Note 14(e)). During the year ended 31
December 2005, the reserve fund was reduced by $5.4 million to match a reduction
in Kazakhmys LLC's capital.

(e) Capital contributions to charter capital of Kazakhmys LLC

Between 31 January 2006 and 14 March 2006, the Company made capital
contributions of $186.7 million to its subsidiary, Kazakhmys LLC. Minority
shareholders contributed a further $1.6 million to the charter capital. As the
Company took up the rights of minority shareholders who did not subscribe to the
initial capital contribution, the Company's share in Kazakhmys LLC increased
from 98.68% at 31 December 2005 to 99.08% at 30 June 2006.

15. Borrowings

During the period, the Group via its subsidiary MKM, obtained a borrowing
facility from Deutsche Bank. The maximum amount that can be borrowed under the
facility is conditional upon a maximum of 80% of trade debtors plus the market
value of inventory minus the trade creditors for metal purchases but not more
than $250.0 million, of which $184.5 million has been drawn down at 30 June 2006. 
The loan bears interest at Euribor +1.45% and is repayable over 4 years. The
loan is secured over the receivables and inventory of MKM. Proceeds of the loan
were used to repay borrowings of $25.4 million from Kazakhmys LLC and support
additional working capital requirements of MKM.



16. Reconciliation of profit before taxation to net cash inflow from operating
activities

$ million                                  Six months  Six months Year ended
                                                ended    ended 30         31        
                                              30 June   June 2005   December  
                                                 2006                   2005      
-----------------------------                ---------  ---------   --------- 
Profit before taxation                          955.9       359.0      848.1  
Interest income                                 (34.0)      (10.0)     (30.6) 
Interest expense                                  1.7         6.3        8.8  
Depreciation and depletion                      101.9       111.7      217.7  
Amortisation                                      1.1         0.7        1.9  
Recognition of negative goodwill                 (6.5)          -          -  
Write (back)/off and impairment losses           (5.7)        3.6       11.8  
Loss on disposal of property, plant and           4.0        10.6        4.6  
equipment                                                                     
Unrealised foreign exchange loss                 46.5         1.7        0.3  
-----------------------------                 ---------   ---------  ---------
Operating cash flows before changes in        1,064.9       483.6    1,062.6  
working capital and provisions                                                
Increase in inventories                        (123.0)      (42.6)     (97.1) 
(Increase)/decrease in prepayments and other    (31.0)      (28.6)      18.0  
current assets                                                                
Increase in trade and other receivables          (7.3)      (17.5)     (69.5) 
(Increase)/decrease in restricted cash           (1.7)       27.5       29.0  
Increase in employee benefits                     0.7         0.1        1.2  
(Decrease)/increase in provisions                (9.5)        0.3        3.4  
(Decrease)/increase in trade and other          (25.2)       29.4       20.3  
payables                                      
-----------------------------                 ---------   ---------  ---------                                
Cash flows from operations before income        867.9       452.2      967.9  
taxes and interest                                                            
Interest paid                                    (0.2)       (7.1)      (9.0) 
Income taxes paid                              (169.2)     (190.2)    (333.3) 
-----------------------------                 ---------   ---------  ---------
Net cash inflow from operating activities       698.5       254.9      625.6  
-----------------------------                 ---------   ---------  ---------

17. Movement in net liquid funds

$ million                  As at  Cash flow         Net Other non       As at     
                       1 January               exchange      cash     30 June   
                            2006            adjustments movements        2006      
                                                              (1)        
-----------------       ---------  ---------   ---------   ---------  ---------           
Cash and cash              522.0       81.0       (20.8)         -      582.2  
equivalents                                                                    
Current investments        356.5      446.2        73.2      (52.1)     823.8  
Borrowings                 (48.8)    (125.7)      (10.8)       0.8     (184.5) 
Finance leases              (0.2)       0.1           -          -       (0.1) 
-----------------        ---------  ---------   ---------  ---------  ---------
Net liquid funds           829.5      401.6        41.6      (51.3)   1,221.4  
-----------------        ---------  ---------   ---------  ---------  ---------

 
$ million                  As at   Cash flow         Net Other non      As at     
                       1 January                exchange      cash    30 June   
                            2005             adjustments movements       2005      
                                                                (1)        
-----------------        ---------  ---------   ---------  ---------  ---------
Cash and cash               74.1       99.6        (4.7)         -      169.0  
equivalents                                                                    
Current investments        259.9       57.0       (12.6)       9.2      313.5  
Borrowings                (101.0)    (103.6)        6.5       (6.1)    (204.2) 
Finance leases              (1.0)       0.4         0.1          -       (0.5) 
Redeemable preference       (0.1)         -           -          -       (0.1) 
shares                  
-----------------        ---------  ---------   ---------  ---------  ---------                                         
             
Net liquid funds           231.9       53.4       (10.7)       3.1      277.7  
-----------------        ---------  ---------   ---------  ---------  ---------

(1) Other non cash movements comprise foreign exchange losses/gains incurred by
the Company's subsidiaries and recognised in the consolidated income statement.


$ million                   As at  Cash flow          Net Other non     As at     
                        1 January                exchange      cash        31        
                             2005            adjustments  movements  December  
                                                                 (1)     2005      
-----------------        ---------  ---------   ---------  ---------  ---------                                         
Cash and cash               74.1      453.0        (5.1)         -      522.0  
equivalents                                                                    
Current investments        259.9       98.8        (8.5)       6.3      356.5  
Borrowings                (101.0)      54.0         2.5       (4.3)     (48.8) 
Finance leases              (1.0)       0.7         0.1          -       (0.2) 
Redeemable preference       (0.1)       0.1           -          -          -  
shares                   
-----------------        ---------  ---------   ---------  ---------  ---------                                         
            
Net liquid funds           231.9      606.6       (11.0)       2.0      829.5  
-----------------        ---------  ---------   ---------  ---------  ---------

(1) Other non cash movements comprise foreign exchange losses gains incurred by
the Company's subsidiaries and recognised in the consolidated income statement.

18. Commitments and contingencies

There have been no material changes in commitments and contingencies since 31
December 2005.

19. Related party disclosures

(a) Transactions with related parties

Transactions between the Company and its subsidiaries, which are related parties
of the Company, have been eliminated on consolidation and are not disclosed in
this note. Details of transactions between the Group and other related parties
are disclosed below.

The following table provides the total amount of transactions which have been
entered into with related parties for the relevant financial period:

$ million                        Sales to   Purchases     Amounts     Amounts    
                                  related        from     owed by     owed to    
                                  parties     related     related     related    
                                              parties     parties     parties    
---------------------             ---------   ---------   ---------   ---------
Apro Limited:                                                                  
Six months to 30 June 2006              -           -           -           -  
Six months to 30 June 2005           20.6           -           -           -  
Year to 31 December 2005             20.6           -           -           -  
---------------------             ---------   ---------   ---------   ---------
                                                                               
HOZU Corporation:                                                              
Six months to 30 June 2006              -           -           -           -  
Six months to 30 June 2005              -         0.1        13.5           -  
Year to 31 December 2005                -         0.2         0.2           -  
---------------------             ---------   ---------   ---------   ---------
                                                                               
Companies under trust                                                          
management                                                                     
Six months to 30 June 2006            5.1         4.2   13.7 (1)          2.2  
Six months to 30 June 2005            5.5         4.0   14.9 (1)            -  
Year to 31 December 2005             15.7         7.6   12.4 (1)          1.6  
---------------------             ---------   --------- ---------     ---------
                                                                               
Other companies                                                                
Six months to 30 June 2006            7.9         1.3         5.9         0.5  
Six months to 30 June 2005            0.2         0.2           -           -  
Year to 31 December 2005              7.1         7.2         1.8         2.0  
---------------------             ---------   ---------   ---------   ---------

(1) A provision of $9.7 million (30 June 2005: $21.2 million, 31 December 2005:
$13.9 million) has been set against the balance.

The Group operates a number of companies under trust management agreements with
local and state authorities. The activities include heating distribution
systems, road maintenance and aviation services. The purpose of these agreements
is to provide public and social services without any material financial benefit
for the Group. Transactions between the Group and these companies are conducted
on an arm's length basis.

(b) 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.

The accounting treatment of the option is governed by International Accounting
Standard 39 "Financial Instruments: Recognition and Measurement". IAS 39
contains special accounting requirements for those equity instruments that do
not have a quoted market price in an active market and derivatives that are
linked to, and must be settled by delivery of, such unquoted equity instruments.
Specifically, they should be measured at cost, less impairment, if their fair
value cannot be reliably measured. The Directors have considered the
requirements of IAS 39 in this regard and are of the view that the fair value
cannot be reliably measured on the basis that, to-date, insufficient information
on EKH's financial performance, position and cash flows has been made available
to the Company in order to arrive at a reliable valuation of the option.
Consequently the option is valued at cost, which is nil, due to the fact that no
payment was made by the Company to enter into the option with Mr Kim.

(c) Directors' interests

The interests of the Directors who were in office at 30 June 2006 in the share
capital of the Company were as follows:
                                                30 June 2006 31 December 2005
                                                ------------     ------------    
Mr Vladimir Kim (1)                              186,685,950      186,685,950  
Mr Yong Keu Cha (2)(3)                            72,946,982       72,946,982  
Mr Oleg Novachuk (4)                              51,462,545       51,462,545  
Mr David Munro                                        41,211           41,211  
Mr Vladimir Ni                                             -                -  
Mr James Rutland                                           -                -  
Lord Renwick                                               -                -  

(1) Mr Kim's interest is represented through a 100% interest in Cuprum Holding
B.V. and a 50% interest in Harper Finance Limited. Additionally, Mr Kim is
registered and beneficial holder of 6,175 ordinary shares (31 December 2005:
6,175).

(2) Mr Cha's interest is represented through a 100% interest in Perry Partners
S.A.

(3) Mr Cha will cease to be a Director effective from 31 December 2006.

(4) Mr Novachuk's interest is represented through a 44.94% interest in Harper
Finance limited. In addition, Mr Novachuk holds a 50% interest in Kinton Trade
Limited, a minority shareholder of the Company, which owns 11,723,045 ordinary
shares.



20. Events after the balance sheet date

On 18 September 2006 the Directors declared an interim dividend in respect of
the year ended 31 December 2006 of 12.8 US cents per ordinary share. The
dividend shall be paid on 27 October 2006 to shareholders on the register as at
29 September 2006.

 


INDEPENDENT REVIEW REPORT TO KAZAKHMYS PLC

                                                                                

Introduction

We have been instructed by Kazakhmys PLC to review the financial information of
Kazakhmys PLC and it subsidiaries ("the Group") for the six months ended 30 June
2006 which comprises the interim consolidated balance sheet and the related
interim consolidated income statement, interim consolidated cash flow statement,
and the interim consolidated statement of changes in equity and related notes 1
to 20. We have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

 

This report is made solely to the Company in accordance with guidance contained
in Bulletin 1999/4 'Review of Interim Financial Information' issued by the
United Kingdom Auditing Practices Board. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the Company, for
our work, for this report, or for the conclusions we have formed.

 

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Directors
are responsible for preparing the interim report in accordance with
International Financial Reporting Standard IAS 34 "Interim Financial Reporting"
("IAS 34"). Our responsibility is to express a conclusion on these interim
consolidated financial statements based on our review.

 

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/
4. A review consists principally of making enquiries of Group management and
applying analytical procedures to the financial information and underlying
financial data, and based thereon, assessing whether the accounting policies and
presentation have been consistently applied unless otherwise disclosed. A review
excludes audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing (UK and Ireland
) and therefore provides a lower level of assurance than an audit. Accordingly
we do not express an audit opinion on the financial information.

 

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2006.

                                                                                

                                                                                

                                                                                

                                                                                

Ernst & Young LLP
London, United Kingdom
18 September 2006



Interim dividend

Interim dividend on the Company's ordinary share capital in respect of the six
months ended 30 June 2006 will be paid as follows:

Amount to be paid in US dollars                12.8 US cents per ordinary   
----------------------------------                                  share                        
                                                     --------------------         
Currency conversion dates (five business days)       12-18 September 2006         
----------------------------------                   --------------------         
Ex-dividend date                                        27 September 2006            
----------------------------------                   --------------------         
Record date                                             29 September 2006            
----------------------------------                   --------------------         
Dividend warrants posted                                  26 October 2006              
----------------------------------                   --------------------         
Payment date of dividend                                  27 October 2006              
----------------------------------                   --------------------         

The interim dividend will be paid on 27 October 2006 to shareholders on the
register at close of business on 29 September 2006.

 
Production and sales figures 
for the six months ended 30 June 2006


1. Summary of significant production and sales figures
                                                          30 June     30 June    
                                                             2006        2005       
Kazakh Mining:                                                                 
Ore mined (kt)                                             20,127      19,458  
Copper content in ore mined (%)                              1.10        1.03  
Copper cathode production (kt):                                                
From own concentrate                                          169         167  
From purchased concentrate                                     18          26  
Total copper cathodes produced (excluding tolling) (kt)       187         193  
Tolling (kt)                                                    1           7  
Total copper cathodes produced (including tolling) (kt)       188         200  
                                                                               
Total copper cathodes and copper rods sold (kt)               178         178  
                                                                               
MKM:                                                                           
Wire sales (kt)                                                82          59  
Flat sales (kt)                                                31          30  
Tubes and Bars sales (kt)                                      21          20  
Total MKM sales (kt)                                          134         109  

 

 


2. Mining

Metal Mining
                               Ore Mined       Copper        Zinc          Gold          Silver          
                          ----------------   ----------  ------------   -----------   ------------------
                         30 June  30 June     30     30     30     30     30     30  30 June 30 June
                            2006     2005   June   June   June   June   June   June     2006    2005   
                                            2006   2005   2006   2005   2006   2005                    
                              kt       kt      %      %      %      %    g/t    g/t      g/t     g/t    
Zhezkazgan Complex:                                                                                   
North                      1,620    1,705   0.67   0.74      -      -      -      -     7.31   10.46  
South                      3,434    3,541   0.73   0.87      -      -      -      -    12.82   13.45  
Stepnoy                    1,693    1,769   0.79   0.76      -      -      -      -    17.42   18.50  
East                       2,886    2,815   0.91   1.01      -      -      -      -    20.04   27.47  
West                       1,386    1,594   0.40   0.69      -      -      -      -    12.93   22.66  
Annensky                   2,435    2,328   1.13   1.11      -      -      -      -    22.17   21.26  
Zhaman-Aybat                 596        -   1.11      -      -      -      -      -     5.46       -  
                  TOTAL   14,050   13,752   0.82   0.89      -      -      -      -    15.54   18.99  
Balkhash Complex:                                                                                     
Kounrad                    1,175    1,828   0.34   0.29      -      -      -      -     1.89    1.62  
Shatyrkul                    244      217   2.04   2.34      -      -   0.29   0.33     2.48    2.65  
Sayak I & Sayak III          867      778   1.12   1.21      -      -   0.25   0.31     5.95    6.11  
                  TOTAL    2,286    2,823   0.82   0.70      -      -   0.26   0.31     3.49    2.94  
                                                                        (1)    (1)                    
East Region:                                                                                          
Orlovskoe                    833      833   4.28   4.34   3.90   3.92   0.57   0.54    54.47   53.21  
Belousovskoe                 132      116   0.91   0.72   3.26   2.40   0.50   0.47    49.85   46.50  
Irtyshskoe                   252      219   1.19   1.02   2.63   2.45   0.29   0.31    40.02   43.85  
Nikolaevskoe                 380    1,108   1.06   1.00   2.07   1.84   0.21   0.17    22.04   16.88  
Yubileyno-Snegirikhinskoe    189      152   4.32   3.62   3.17   4.97   0.57   0.65    42.74   45.14  
Artemyevskoe                 532        -   1.68      -   6.85      -   1.75      -   161.32       -  
                  TOTAL    2,318    2,428   2.63   2.30   4.04   2.83   0.75   0.35    70.90   34.96  
Karaganda Region:                                                                                     
Abyz                         184      233   1.68   0.80   3.47   4.71   3.71   6.38    47.65   62.62  
Nurkazgan                  1,023      222   1.22   0.35      -      -   0.31   0.13     3.76    1.24  
Kosmurun                     266        -   4.29      -      -      -   1.53      -     22.7       -  
                  TOTAL    1,473      455   1.83   0.58   3.47   4.71   0.96   3.33    12.67   32.67  
                                                          (2)    (2)                                  
TOTAL KAZAKH MINING       20,127   19,458   1.10   1.03   4.00   2.99   0.70   0.69    20.34   18.97  
                                                          (3)    (3)    (4)    (4)                    

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

(2) Production only from Abyz mine.

(3) Production only from East Region and Abyz mine of Karaganda Region.

(4) Production only from Balkhash Complex (excluding Kounrad mine), East Region
and Karaganda Region.

 

 

Coal Mining
                         Coal mined        Waste stripped    Strip ratio      
                      ---------------   ---------------   ----------------
                     30 June  30 June  30 June  30 June  30 June  30 June 
                        2006     2005     2006     2005     2006     2005    
                          kt       kt     kbcm     kbcm     bcm:t    bcm:t   
Borlynskoe             3,231    2,738    4,699    2,874     1.45     1.05  
Kuu - Chekinskoe         500      600    2,048    2,352     4.09     3.92  
              TOTAL    3,731    3,338    6,747    5,226     1.81     1.57  



3. Processing

Copper Processing
                                    Copper concentrate     Copper in concentrate  
                                           produced     
                                  --------------------- ------------------------
                                   30 June     30 June     30 June     30 June    
                                      2006        2005        2006        2005       
                                        kt          kt           %           %  
Zhezkazgan Complex:                                                              
Zhezkazgan No.1                         90          96        39.6        40.3  
Zhezkazgan No.2                        104         118        39.5        39.6  
Satpayev                                86          86        28.0        26.9  
                         TOTAL         280         300        36.0        36.2  
                                                                                
Balkhash Complex:                                                               
Balkhash                               133          92        18.3        18.0  
                         TOTAL         133          92        18.3        18.0  
                                                                                
East Region:                                                                    
Orlovskoe                              160         158        20.1        20.7  
Belousovskoe                             6           5        13.5        15.1  
Irtyshskoe                              13          10        13.4        14.3  
Nikolaevskoe                            81          68        16.0        14.4  
                         TOTAL         260         241        18.4        18.5  
                                                                                
Karaganda Region:                                                               
Karagaily (Abyz)                        44          39         3.8         2.1  
Karagaily (Kosmurun)                    27           -        17.3           -  
                         TOTAL          71          39         9.0         2.1  
                                                                                
Own copper concentrate processed        17          14        24.2        15.8  
by third party                                                                  
                                                                                
TOTAL (own concentrate)                761         686        24.1        25.2  
                                                                                
Purchased concentrate                   91         138        21.0        20.1  
                                                                                
TOTAL (own and purchased               852         824        23.8        24.3  
concentrate)                                                                    

 



4. Zinc and Precious Metals Processing

                             Zinc          Zinc in       Silver            Gold         
                          concentrate   concentrate                                  
                           produced                                                   
                          -----------  ------------- --------------- --------------
                            30     30     30     30   30 June 30 June     30     30    
                          June   June   June   June      2006    2005   June   June  
                          2006   2005   2006   2005                     2006   2005  
                            kt     kt      %      %       g/t     g/t    g/t    g/t   
Zhezkazgan Complex:                                                                  
Zhezkazgan No.1              -      -      -      -     776.6   825.5      -      -  
Zhezkazgan No.2              -      -      -      -     701.3   939.3      -      -  
Satpayev                     -      -      -      -     576.9   488.0      -      -  
                  TOTAL      -      -      -      -     687.5   772.8      -      -  
Balkhash Complex:                                                                    
Balkhash                     -      -      -      -      54.4    54.8    2.8    2.1  
                  TOTAL      -      -      -      -      54.4    54.8    2.8    2.1  
East Region:                                                                         
Orlovskoe                   51     54   45.0   42.3     106.7   120.2    1.2    1.2  
Belousovskoe                 7      5   43.9   43.8     590.8   611.6    5.7    5.8  
Irtyshskoe                   7      7   38.4   35.9     422.9   460.6    2.3    2.1  
Nikolaevskoe                28     27   40.9   35.4     137.2    90.3    1.4    0.7  
Yubileyno-Snegirikhinskoe    -      8      -   32.0         -   177.5      -    2.0  
(KazZinc)                                                                            
Artemyevskoe (KazZinc)      56      -   51.7      -   2,697.5       -   14.5      -  
                  TOTAL    149    101   43.2   39.9     143.2   135.9    1.4    1.2  
Karaganda Region:                                                                    
Karagaily                    5      8   33.8   34.8     124.7   178.9    8.4   18.3  
                  TOTAL      5      8   33.8   34.8     124.7   178.9    8.4   18.3  
TOTAL KAZAKH MINING        154    109   42.7   39.5   330.5(1)  411.7   2.9(1) 3.2(1)
                                        (1)    (1)              (1)                  

(1) Production from own concentrators within East Region and Karaganda Region.

 

5. Copper Smelter/Refinery - copper cathodes production

                         Concentrate       Copper in       Copper cathodes  
                            smelted        concentrate   
                      ----------------- ----------------- -----------------
                     30 June  30 June  30 June  30 June  30 June  30 June 
                        2006     2005     2006     2005     2006     2005    
                          kt       kt        %        %       kt       kt      
Zhezkazgan Complex:                                                        
Own concentrate          317      316     34.0     34.9      102      108  
Purchased concentrate      9       27     26.8     24.7        3        7  
Other (1)                 71       77        -        -        1        3  
              TOTAL      397      420     28.6     28.7      106      118  
Balkhash Complex:                                                          
Own concentrate          461      345     16.6     17.1       65       56  
Purchased concentrate     83      107     20.1     18.8       15       19  
Other (1)                 46       79        -        -        1        -  
              TOTAL      590      531     16.0     15.2       81       75  
TOTAL KAZAKH MINING      987      951     21.2     21.2      187      193  
(excluding tolling)                                                        
Tolling                    -        6     83.0     82.2        1        7  
TOTAL KAZAKH MINING      987      957     21.1     21.5      188      200  
(including tolling)                                                        

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



6. Copper Smelter/Refinery - copper rod and acid production

                              Copper rod                  Acid production              
--------------         ----------------------          ---------------------
                    30 June 2006   30 June 2005   30 June 2006   30 June 2005  
--------------         -----------    -----------    -----------    -----------
                              kt             kt             kt             kt            
--------------         -----------    -----------    -----------    -----------
Zhezkazgan                    14              6            106            117  
--------------         -----------    -----------    -----------    -----------
Balkhash                       -              -              -              -  
--------------         -----------    -----------    -----------    -----------
            TOTAL             14              6            106            117  
--------------         -----------    -----------    -----------    -----------

 

7. Zinc Smelter/Refinery - zinc metal production

                           Zinc concentrate        Zinc in           Zinc metal       
                                smelted           concentrate                        
                           ---------------- ------------------  ---------------
                           30 June  30 June  30 June  30 June  30 June  30 June 
                             2006     2005     2006     2005     2006     2005    
                               kt       kt        %        %       kt       kt      
TOTAL (all Balkhash            85      113     45.7     41.1       34       29  
Complex)                                                                        

 

8. Precious metal production
                                               Silver              Gold               
                                          ---------------    -----------------
                                         30 June   30 June   30 June   30 June  
                                            2006      2005      2006      2005     
                                             koz       koz       koz       koz      
Kazakhmys                                 10,660    10,593        54        47  
Tolling                                       32        45        24        16  
TOTAL (including tolling)                 10,692    10,638        78        63  

 

9. Other production - Kazakh Mining
                                              30 June 2006       30 June 2005
                                                ----------        -----------
Electricity power space (GWh)                        3,358              3,137  
Heating power (KGcal)                                2,431              2,444  
Enamel wire (t)                                        195                264  
Lead dust (t)                                        7,236              7,443  

 

10. Kazakh Mining sales
                                           30 June 2006        30 June 2005       
                                        ------------------    ---------------
                                          kt (1) $ million    kt (1) $ million
Copper cathode                               163   1,060.2       173     595.5  
Copper rod                                    15      98.6         5      20.1  
TOTAL COPPER SALES                           178   1,158.8       178     615.6  
                                                                                
Zinc concentrate                              81      59.1         8       1.6  
Zinc metal                                    37     102.4        38      46.8  
Silver (koz)                              10,835     117.8    10,963      77.2  
Gold (koz)                                    47      28.2        33      14.2  

(1) Kilotonne unless stated



11. Average realised prices
                                              30 June 2006       30 June 2005 
                                                 ---------        -----------
Copper ($/t)                                         6,510              3,458  
Zinc ($/t)                                           2,767              1,231  
Silver ($/oz)                                        10.87               7.04  
Gold ($/oz)                                            600                430  

 

12. MKM production and sales
                                           30 June 2006        30 June 2005 
                                         ----------------  ------------------
                                         Production Sales    Production Sales   
                                             kt        kt         kt       kt      
Wire rod                                    62.5     62.2       43.8     43.4  
Drawn wire                                  19.9     19.6       15.4     15.6  
Total wire                                  82.4     81.8       59.2     59.0  
Pre-rolled                                   1.1      1.2        3.8      3.8  
Sheets                                       7.7      7.6        6.3      5.9  
Strips                                      22.7     22.6       20.9     20.6  
Total flat                                  31.5     31.4       31.0     30.3  
Tubes                                       10.1      9.9        9.5      9.3  
Bars                                        11.3     11.1       10.8     10.9  
Total tubes and bars                        21.4     21.0       20.3     20.2  
TOTAL MKM                                  135.3    134.2      110.5    109.5  

 


                                    Glossary                                    

AGM or Annual General Meeting

The Annual General Meeting of the Company which was held on 23 May 2006.

 

Apro

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

 

bcm:t

Bank cubic metres excavated to recover one metric 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-product credits

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

 

CIS

Commonwealth of Independent States.

 

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

 

EKH

ENRC Kazakhstan Holding B.V., the holding company for certain assets of the
Eurasia Natural Resources group's metals and mining business.

 

 

EURIBOR

European Inter Bank Offer Rate

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

 

GWh

Gigawatt-hour, one gigawatt-hour represents one hour of electricity consumed at
a constant rate of one gigawatt

 

g/t

grammes per metric tonne

 

The Group

Kazakhmys PLC and its subsidiary companies

 

HSE Committee

Health Safety and Environment Committee

 

IAS

International Accounting Standards

 

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

 

KGcal

One thousand Gigacalories, units of heat energy

 

koz

Thousand ounces

 

kt

Thousand metric tonnes

 

Listing

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

 

LME

London Metal Exchange

 

LSE

London Stock Exchange

 

MKM

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

 

ROCE

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

 

$/t , $/tonnes

US dollars per metric 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 4(a) to the financial information

 

t

Metric 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

 

 

 

 

 




                      This information is provided by RNS
            The company news service from the London Stock Exchange