INTEGRATED REPORT 2016
Consolidated Statement of Cash Flows
(in thousands of US dollars, unless otherwise stated)
| Note | 2016 | 2015 | |
| Cash flows from operating activities | |||
| Profit before income tax | 1,756,696 | 207,599 | |
| Adjustments for: | |||
| Depreciation of property, plant and equipment and amortisation of intangible assets | 8, 10 | 194,151 | 220,346 |
| Expenses related to mine flooding provision | 25 | 207 | 10,113 |
| Reversal of impairment of Solikamsk-2 property, plant and equipment and assents under construction | 25 | (582) | (27,248) |
| Loss on disposals of property, plant and equipment and intangible assets | 25 | 9,322 | 22,390 |
| Loss on impairment of prepayments for acquisition of property, plant and equipment and intangible assets | 25 | (2,207) | 2,414 |
| Impairment of financial assets | 26 | 297 | - |
| Provision for obsolete inventories | 3,770 | - | |
| Impairment of property, plant and equipment and assets under construction | 25 | 3,773 | 1,558 |
| (Reversal)/accrual of provision for impairment of trade and other receivables and advances given | 25 | (991) | 8,337 |
| Accrual of resettlement provision | 25 | 9,792 | - |
| Change in provisions, net | (563) | (33,782) | |
| Fair value (gain)/loss on derivative financial liabilities, net | 26 | (184,983) | 232,759 |
| Foreign exchange (gain)/loss, net | 26 | (888,967) | 1,038,810 |
| Other finance income and expense, net | 26 | 305,527 | 246,073 |
| Operating cash flows before working capital changes | 1,205,242 | 1,929,369 | |
| Decrease in trade and other receivables and advances to suppliers | 165,064 | 132,993 | |
| Increase in inventories | (4,042) | (29,742) | |
| (Decrease)/increase in trade and other payables and advances received | (4,634) | 77,447 | |
| Increase in other taxes payable/receivable | 16,037 | 11,664 | |
| Cash generated from operations | 1,377,667 | 2,121,731 | |
| Interest paid | (318,848) | (278,042) | |
| Income taxes paid net of refunds received | (46,835) | (62,601) | |
| Net cash generated from operating activities | 1,011,984 | 1,781,088 | |
| Cash flows from investing activities | |||
| Acquisition of intangible assets | (5,732) | (3,461) | |
| Acquisition of property, plant and equipment | (317,399) | (339,169) | |
| Proceeds from sales of property, plant and equipment | 590 | - | |
| Loan issued | (477,438) | - | |
| Loan repaid | 292,536 | - | |
| Purchase of other financial assets at fair value through profit or loss | - | (7,792) | |
| Proceeds from sale of other financial assets at fair value through profit or loss | - | 8,367 | |
| Deferred payment for the share in associate | - | (4,000) | |
| Decrease in deposits | - | 370,000 | |
| Increase in deposits | - | (70,000) | |
| Dividends and interest received | 13,504 | 36,632 | |
| Net cash used in investing activities | (493,939) | (9,423) | |
| Cash flows from financing activities | |||
| Repayments of borrowings | 17 | (898,025) | (929,885) |
| Proceeds from borrowings | 17 | 1,350,389 | 1,924,709 |
| Arrangement fees and other financial charges paid | (112,269) | (32,678) | |
| Cash proceeds from derivatives | 19 | 14,671 | 49,621 |
| Cash paid for derivatives | 19 | (215,620) | (94,337) |
| Purchase of treasury shares | 15 | (506,134) | (3,366,878) |
| Decrease/(increase) in restricted cash | 200,000 | (200,000) | |
| Finance lease payments | (40) | (476) | |
| Dividends paid to non-controlling interests | - | (246) | |
| Dividends paid to the Companys shareholders | (106) | (259) | |
| Net cash used in financing activities | (167,134) | (2,650,429) | |
| Effect of changes in foreign exchange rate changes in cash and cash equivalents | 22,732 | (164,605) | |
| Net increase/(decrease) in cash and cash equivalents | 373,643 | (1,043,369) | |
| Cash and cash equivalents at the beginning of the year | 14 | 1,111,878 | 2,155,247 |
| Cash and cash equivalents at the end of the year | 14 | 1,485,521 | 1,111,878 |
The accompanying notes are an integral part of these consolidated financial statements.