Untitled - PRIME Gold

1542005NORILSK NICKEL • ANNUAL REPORT •NORILSK NICKEL • ANNUAL REPORT •2005155MINING AND METALLURGICAL COMPANY NORILSK NICKELNOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005(US dollars million)MINING AND METALLURGICAL COMPANY NORILSK NICKELNOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005(US dollars million)Holdings in the following companies were acquired:Russian gold mining companies2005 2004OJSC "Aldanzoloto GRK" 99.2% –OJSC "Yuzhno-VerkhoyanskayaGornaya Kompaniya" 50.0% –OJSC "Yakutskaya Gornaya Kompaniya" 100.0% –OJSC "Pervenets" 74.0% –OJSC "Lenzoloto" 11.2% 57.0%OJSC "Matrosov Mine" 30.3% 57.1%OJSC "Tonoda" – 100.0%Other acquisitionsLLC "Terminal" 100.0% –LLC "Gornaya Leasingovaya Kompaniya" 80.1% –CJSC "Kraus-M" – 40.0%39. DISPOSAL OF SUBSIDIARIESNet assets disposed ofProperty, plant and equipment(refer to note 19) 12 28Other assets 10 28Trade and other payables (21) (28)40. DIVIDENDS2005 2004On 30 December 2005 the Company declaredan interim dividend of RUR 43 (USD 1.49) pershare in respect of the year ended 31 December2005. The dividend was paid to shareholderson 28 February 2006. This amount is net ofUSD 3 million paid to Group subsidiaries. 298 –On 30 June 2005 the Company declared afinal dividend for the year ended 31 December2004 of RUR 28 (USD 0.98) per share. The dividendwas paid to shareholders on 31 August2005. This amount is net of USD 3 million paidto Group subsidiaries. 194 –On 26 November 2004 the Company declaredan interim dividend of RUR 41.4 (USD 1.46)per share in respect of the year ended31 December 2004. The dividend was paid toshareholders on 30 December 2004. Thisamount is net of USD 5 million paid to Groupsubsidiaries. – 308àÚÓ„Ó 492 30841. RELATED PARTIESRelated parties are considered to include shareholders, associates,entities under common ownership and control withthe Group and members of key management personnel. TheCompany and its subsidiaries, in the ordinary course of theirbusiness, enter into various sales, purchases and service transactionswith related parties.Transactions with related parties2005Sale Purchase Purchase Purchaseof goods of goods of services of investmentsBy the Company 52 54 63 47By subsidiaries of the Group 12 62 37 –Total 64 116 100 472004By the Company 19 65 26 8By subsidiaries of the Group – 68 7 38Total 19 133 33 46Outstanding balances with related partiesCONSOLIDATED ANNUAL FINANCIAL STATEMENTS OF MMCNORILSK NICKEL FOR THE YEAR ENDED 31 DECEMBER 2005Net assets at date of disposal 1 28Less: Minority interest – –Group's share of assets disposed of 1 28Less: Loss on disposal – (1)Proceeds from disposal of subsidiaries 1 27Less: Cash and cash equivalentsdisposed of – (2)Net cash inflow fromdisposal of subsidiaries 1 25The following entities were disposed of or the Group's holdingdecreased:31 December 2005Loans and Investments Trade Tradeborrowings and cash receivables PayablesBy the Company – 242 2 20By subsidiaries of the Group 31 214 6 14Total 31 456 8 3431 December 2004By the Company – 732 6 15By subsidiaries of the Group 9 111 4 3Total 9 843 10 1813OJSC "Nedra Bodaybo" 51.0% –LLC "Norilskiye Metally" 100.0% –OJSC "Monchebank" – 15.4%OJSC "Olenegorsky Mekhanichesky Zavod" – 100.0%OJSC "Tuimsky Zavod Tsvetnykh Metallov" – 99.9%OJSC "PromEstate" – 99.1%The amounts outstanding were unsecured and will be settledin cash. No guarantees have been given or received. Noexpense has been recognised for bad or doubtful debts inrespect of the amounts owed by related parties.Compensationof key management personnelThe remuneration of key management personnel of theCompany for the year ended 31 December 2005 amountedto USD 14 million (2004: USD 11 million).