News and events

17 May 2011

The Board of Directors of OJSC "Kuzbasskaya Toplivnaya Company” reviewed questions about preparing for annual general meeting of shareholders

On May 16, 2011 the session of the Board of Directors took place in Kemerovo. Questions concerning preparing for annual meeting of shareholders were discussed, as well as questions of current activities of the Company.

The annual general meeting of shareholders will take place at 15:00, 23 June, 2011, address: Kemerovo, ul. 50 let Oktyabrya, 4, conference room.

The Board of Directors accepted the plan of financial and economic activity of OJSC "Kuzbasskaya Toplivnaya Company" and its subsidiaries for 2011, appointed managers in charge of performing parts of the plan, approved the agenda of meeting of shareholders, and also made a decision to approve preliminary and to introduce to shareholders the annual report and financial statements for 2010.

During the meeting it was decided to introduce the following redrafted documents for approval on the general meeting of shareholders: Regulations of OJSC "Kuzbasskaya Toplivnaya Company"; Regulations on the procedure for preparing and holding the general meeting of shareholders; Regulations on the Board of Directors; Regulations on the General Director and Regulations on the Audit Committee.

The Board of Directors recommended the annual general meeting of shareholders to make a decision to distribute dividends for 2010 at the rate of RUR 3 for 1 common share of nominal value of RUR 0.2 each, and to direct for this purpose a part of the Company’s 2010 net profit amounting to RUR 297 775 065. Dividends will be transferred to shareholders within 60 days from the date of making a decision of their payment.

The Company's Share Register Book's closing date for the rights to receive dividends was scheduled on May 16 2011.

Based on the offers received from shareholders the Board of Directors approved the list of candidates for election to the Board of Directors on the annual general meeting of shareholders, including:

  • Igor Prokudin – the General Director OJSC "Kuzbasskaya Toplivnaya Company";
  • Eduard Alexeenko - First Deputy General Director of OJSC "Kuzbasskaya Toplivnaya Company";
  • Ivan Gepting - Deputy General Director of OJSC "Kuzbasskaya Toplivnaya Company", Sales;
  • Vadim Danilov – the Chairman of the Board of Directors of OJSC "Kuzbasskaya Toplivnaya Company";
  • Yuriy Fridman - Independent Director of OJSC "Kuzbasskaya Toplivnaya Company";
  • David Stewart - Independent Director of OJSC "Kuzbasskaya Toplivnaya Company".

 

Informational note:

The Agenda of the annual General meeting of shareholders of OJSC "Kuzbasskaya Toplivnaya Company", approved by the Board of Directors, includes following questions:
1. Approving the annual report of OJSC "Kuzbasskaya Toplivnaya Company" for 2010.
2. Approving the annual financial statements, including report of profit and loss of OJSC "Kuzbasskaya Toplivnaya Company" for 2010.
3. Distribution of profit and loss of OJSC "Kuzbasskaya Toplivnaya Company", including payment of dividends following the financial results of 2010.
4. Electing of the members of the Board of Directors of OJSC "Kuzbasskaya Toplivnaya Company".
5. Approving of the size of remuneration, paid to the members of the Board of Directors of OJSC "Kuzbasskaya Toplivnaya Company".
6. Electing of members of the audit committee of OJSC "Kuzbasskaya Toplivnaya Company".
7. Approving of the size of remuneration, paid to the members of the audit committee of OJSC "Kuzbasskaya Toplivnaya Company".
8. Approving of the Auditor of OJSC "Kuzbasskaya Toplivnaya Company".
9. Approving of the regulations of OJSC "Kuzbasskaya Toplivnaya Company".
10. Approving of the regulations on the procedure for preparing and holding the general meeting of shareholders of OJSC "Kuzbasskaya Toplivnaya Company", new edition.
11. Approving of the regulations on the Board of Directors of OJSC "Kuzbasskaya Toplivnaya Company", new edition.
12. Approving of the regulations on the General Director of OJSC "Kuzbasskaya Toplivnaya Company", new edition.
13. Approving of the regulations on the audit committee of OJSC "Kuzbasskaya Toplivnaya Company".

For more information please contact:

OJSC "Kuzbasskaya Toplivnaya Company" (Kemerovo)
Elena Sarycheva
Head of public affars department
+7 384 236 47 62

For investor enquiries please contact:

OJSC "Kuzbasskaya Toplivnaya Company" (Moscow)
Anton Rumyantsev
Investor relatinons manager
+7 495 787 68 05

Notes to editors:

Company Overview

OJSC "Kuzbasskaya Toplivnaya Company" ("KTK" or the "Company") is one of the fastest-growing thermal coal producers in Russia. In terms of 2010 production volume, it was ranked 7th among the largest thermal coal producers in the country. In the ten years since its establishment in 2000, the Company has commissioned and launched three open-pit mines and an enrichment plant, achieving annual production volume of 6.8 million tonnes of coal in 2010. The Company expects to continue to grow its production volume, in particular, following the launch of the Cheremshansky mine in 2008 and ongoing investments into its high performance modern mining technology, aimed at achieving the aggregate structural capacity1 of existing mines of 11 million tonnes of coal per year.

The Company’s JORC coal resources totaled 402 million tonnes of ROM coal as of January 1, 2011 and proven and probable reserves amounted to 185 million tonnes of ROM coal, recoverable during the period of 2011-2030. The Company produces exclusively thermal coal, classified as grade "D" under the Russian classification system, with a naturally low sulphur and phosphorus content, as well as a relatively high calorific value.

The Company conducts mining operations at three open-pit mines, located in the Kuzbass area, Russia’s largest coal producing region. The Company’s mining operations are supported by an extensive production and logistics infrastructure, including its own railway network and facilities, which enable the Company to transport 100% of produced coal from the open-pit mines to the main railway hub at the long-distance railway network, operated by the Russian Railways. Furthermore, as the Company’s mines are located within 5 km from each other, a number of operations are centralized, thereby minimising overhead costs and expenses.

In 2010, the Company’s total coal sales amounted to 8.5 million tonnes of coal, of which 6.4 million tonnes were produced by the Company and 2.1 million tonnes were retailed after purchasing from other coal producers. The Company maintains a diversified sales structure balanced between export and domestic sales with approximately 56% of the coal sold to domestic consumers and approximately 44% exported, primarily to Poland, South Korea and China, in 2010.

The Company’s strong regional presence is supported by an extensive retail distribution network, located throughout the Kemerovo, Novosibirsk, Omsk and Altay regions of Western Siberia. As of 01 January 2011, the Company’s distribution network included 65 owned and operated points of sale and delivered 3.3 million tonnes of coal in 2010, positioning KTK as one of the principal suppliers of coal to retail customers in Western Siberia.

Consolidated IFRS 2010 Financial Highlights

  • Revenue increased by 33% to RUR 14,160 mln (2009: RUR 10,658 mln)
  • EBITDA2 – RUR 2,134 mln (2009: RUR 2,178 mln)
  • EBITDA margin – 15% (2009: 20%)
  • Net income – RUR 823 mln (2009: RUR 663 mln)
  • Net income margin – 6% (2009: 6%)

1 The maximum production capacity that the Company believes could be achieved (taking into account projected stoppages for planned repair and maintenance) in an annual period if the Company were able to process all the coal that could be mined using the Company’s existing mine facilities after acquisition of certain mining equipment and construction of three processing/enrichment facilities in accordance with its current capital expenditure program

2 EBITDA for each period is defined as results from operating activities, adjusted for amortization and depreciation, impairment loss and loss on disposal of property, plant and equipment. EBITDA is not a measurement of the Company’s operating performance under IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS or as an alternative to cash flow from operating activities or as a measure of the Company’s liquidity.