AGMK receives an audit report from the "Big Four" Company

Tashkent, Uzbekistan (UzDaily.com) -- For the first time in the history of Almalyk Mining and Metallurgy Combine (AGMK) received an audit report from the Big Four Company, from the international auditing organization Ernst & Young (EY) on the preliminary consolidated financial statements of the plant, prepared in accordance with international financial reporting standards (IFRS).

In order to fulfill the Decree of the President of the Republic of Uzbekistan "On measures to further improve the activities of enterprises in the mining and metallurgical industry" and the implementation of preparatory and basic measures for the primary (IPO) and secondary (SPO) placement of the plant’s shares in international stock exchanges in 2023, in AGMK, an independent external audit was carried out with the involvement of the international auditing company Ernst & Young (EY).

As part of the audit, the plant prepared preliminary financial statements in accordance with International Financial Reporting Standards (IFRS) as of 1 January 2020. An appraisal of the plant’s fixed assets was also carried out to determine the fair value of AGMK’s long-term assets and the actual value of long-term social obligations.

With the help of this auditor’s report, the plant aims to obtain an international credit rating and attract international financial institutions for effective financing of investment projects at the Yoshlik 1 field.

In pursuance of the Resolutions of the President of the Republic of Uzbekistan, the necessary work is currently being carried out for the timely transition of the plant to accounting and financial reporting in accordance with IFRS. A new department has been created in the structure of the executive office, whose employees have extensive experience in international companies of the Big Four. 

The plant also attracted the international consulting company KPMG to assess the readiness of AGMK for the initial public offering, the operational efficiency of business processes and assess the level of development of management systems in areas. In the above areas, reports and roadmaps have been prepared for the implementation of the recommendations of the international consulting company KPMG.

Currently, the plant is negotiating with the State Development Corporation VEB.RF (Russian Federation) on the issue of attracting a direct loan to finance an investment project; as of today, a loan agreement has been signed in the amount of 1.8 billion rubles (equivalent to 20.0 million euro) to finance supplies of Russian-made equipment. 

Also, the issue of attracting 59.0 million US dollars to finance the supply of mining dump trucks manufactured by OJSC BELAZ (Republic of Belarus) has been worked out, at the stage of signing a loan agreement. Loans are attracted on concessional terms, subject to subsidies from the Government of the Russian Federation and the Republic of Belarus, without collateral or additional guarantees.