Download 2004 Annual Report - Polymetal

JSC “ISPA “POLYMETAL”CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands of U.S. Dollars, except as indicated)Year endedDecember 312004Year endedDecember 312003Cash flows from operating activitiesNet income 83 583 13 468Adjustments to reconcile net income to cash provided by operations:Depreciation and depletion 12 341 6 662Amortization of intangible assets 168 224Accretion of reclamation and mine closure obligation 665 581Gain on disposal of subsidiaries (47 551) −Gain on partial disposal of interest in a consolidated subsidiary − (13 850)Deferred income tax expense (benefit) 7 863 (3 221)Loss on disposal of property, plant and equipment 1 338 475Exchange gains, net (8 873) (8 868)Minority interest 12 782 642Changes in operating working capital, excluding cash and debt:Prepayments to suppliers (2 551) 1 644Related party receivables and prepayments 10 971 (7 084)Inventories (16 812) (12 211)VAT receivable (9 687) (16 972)Other current assets (21 297) 1 239Accounts payable and accrued liabilities 7 401 2 414Tax payable 1 625 (120)Net cash provided by (used in) operating activities 31 966 (34 977)Cash flows from investing activitiesAdditions to property, plant and equipment (29 595) (46 660)Purchase of additional shares in subsidiary (21 226) (296)Proceeds from disposal of interest in consolidated subsidiaries 10 890 20 787Prepayments for acquisition of third party promissory notes − (12 277)Loans made to third parties (31 117) −Repayment of loans made to third parties 9 670 −Loans made to related parties (12 783) (3 593)Repayment of loans made to related parties 10 766 −Net cash used in investing activities (63 395) (42 039)Cash flows from financing activitiesOrdinary shares issuance − 27 160Proceeds from short−term loans and borrowings 138 713 38 518Repayment of short−term loans and borrowings (202 913) (12 317)Proceeds from long−term debt 105 000 135 001Repayment of long−term debt (21 893) (145 952)Proceeds from short−term loans and borrowings – related parties 141 454 50 520Repayment of short−term loans and borrowings – related parties (141 999) (14 841)Proceeds from long−term debt – related parties 203 040 62 978Repayment of long−term debt – related parties (176 807) (38 971)Purchase of bonds − (8 093)Sale of bonds 6 520 −Lease payments (20 406) (15 689)Net cash provided by financing activities 30 709 78 314Exchange effects on cash balances 148 46Net (decrease) increase in cash and equivalents (572) 1 344Cash and cash equivalents, beginning of the year 1 925 581Cash and cash equivalents, end of the year 1 353 1 925Supplementary cash flow informationInterest paid, except for interest capitalized 33 230 16 843Income taxes paid 3 300 54Accounts receivable for subsidiary disposal 1 401 −Noncash additions to property, plant and equipment – capital lease 17 715 24 756The accompanying notes are an integral part of these consolidated financial statements.52 Polymetal annual report 2004