News and events

18 October 2012

OJSC "Kuzbasskaya Toplivnaya Company" held an extraordinary general meeting of shareholders

Kemerovo, Russia – OJSC "Kuzbasskaya Toplivnaya Company" on October 16, 2012 at 14:00 (Kemerovo time) at the city of Kemerovo, 4, 50th October street, held an extraordinary general meeting of the Company’s shareholders.

By a vote of shareholders decided three of the four questions that were on the agenda:

  1. Shareholders' decision Igor Prokudin elected the General Director of the OJSC "Kuzbasskaya Toplivnaya Company" for a term of five (5) years.
  2. Approved changes to the Constitution and Regulations of the Board of Directors of OJSC "Kuzbasskaya Toplivnaya Company" associated with the introduction of part-time voting at meetings of the Board of Directors.
  3. Due to the new requirements of the Federal Law of 26.12.1995 № 208-FZ "On Joint Stock Companies" submitted changes in the procedure for the preparation and holding of the General Shareholders' Meeting of OJSC "Kuzbasskaya Toplivnaya Company".
  4. The proposal to amend the Constitution and the Regulations on the procedure for the preparation and holding of the General Shareholders' Meeting of OJSC "Kuzbasskaya Toplivnaya Company", associated with the introduction of a mandatory direction (delivery) of the ballots prior to the General Meeting of Shareholders of the Company, was not accepted. In the opinion of management, the implementation of this procedure prolongs the preparation and holding of shareholders meetings and thus prolongs the decision to pay dividends.

Contacts for press:

OJSC "Kuzbasskaya Toplivnaya Company" (Kemerovo)

Elena Sarycheva
Head of public affairs department

Tel.: +7 (3842) 36-47-62

Contacts for analysts and investors:

OJSC "Kuzbasskaya Toplivnaya Company" (Moscow)

Vasily Rumyantsev
Investor Relations Manager

Tel.: +7 (495) 787-68-05

Notes to editors:

Company Overview

OJSC "Kuzbasskaya Toplivnaya Company" ("KTK" or the "Company") is one of the fastest-growing thermalcoal producers in Russia. In terms of 2011 production volume1, it was ranked 7th among the largest thermalcoal producers in the country. In the twelve years since its establishment, the Company has commissionedand launched three open-pit mines and a washing plant, achieving annual production volume of 8.74 mln.tonnes of coal in 2011.

The Company’s JORC coal resources totaled 402 mln. tonnes of ROM coal as of January 1, 2011 and provenand probable reserves amounted to 185 mln. tonnes of ROM coal, recoverable during the period of 2011-2030. In December 2011 the Company won an auction for the right to use subsurface of "Bryansky" coaldeposit with reserves of 250 mln. tonnes of coal in the C2 category. The surface mine is located in closeproximity to existing infrastructure and production assets.

The Company produces exclusively thermal coal, classified as grade "D" under the Russian classificationsystem, 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’slargest coal producing region. The Company’s mining operations are supported by an extensive productionand logistics infrastructure, including its own railway network and facilities, which enable the Companyto transport 100% of produced coal from the open-pit mines to the main railway hub at the long-distancerailway network, operated by the Russian Railways. Furthermore, as the Company’s mines are compactlylocated within 5 km from each other, a number of operations are conducted centrally, thereby minimizingoverhead costs and expenses.

In 2011, the Company’s total coal sales amounted to 10.66 mln. tonnes of coal, of which 8.58 mln. tonneswere produced by the Company and 2.08 mln. tonnes were retailed after purchasing from other coalproducers. The Company maintains a diversified sales structure balanced between export and domesticsales: in 2011 about 39% of total sales were sold to domestic consumers and approximately 61% exported,primarily to Eastern Europe and the Asia-Pacific region.

The Company’s strong regional presence is supported by an extensive retail distribution network, locatedthroughout the Kemerovo, Novosibirsk, Omsk and Altay regions of Western Siberia. As of June 30, 2012the Company’s distribution network included 71 owned and operated points of sale and delivered 3.18mln. tonnes of coal in 2011, positioning KTK as one of the principal suppliers of coal to retail customers inWestern Siberia.

65.61% of share capital is owned by the management (I. Prokudin – 50,001%, V. Danilov – 15.61%), free-float – 34.39% is distributed between over 20 investment funds.

FY 2011 Financial Highlights

  • Revenue increased by 69% to RUB 23,939 mln. (2010: RUB 14,160 mln.)
  • EBITDA2 – RUB 3.911 mln. (2010: RUB 2,134 mln.)
  • EBITDA margin – 16.3% (2010: 15.1%)
  • Net income – RUB 2,018 mln. (2010: RUB 823 mln.)
  • Net income margin – 8.4% (2010: 5.8%)

Additional information about the Company and investor calendar:

KTK in social networks:

News and announcements (Russian only)



1 Metal Expert, January 2012

2 EBITDA for each period is defined as results from operating activities, adjusted for amortization and depreciation, impairment loss and loss ondisposal 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.