Assessment of the Financial Position and Performance of the Chosen Leading Companies in the Mining Industry in the Kyrgyz Republic

MSc. Rukiia Akumova

Master's thesis

Abstract:

This diploma thesis is focusing on the assessment of financial position and performance of two leading companies that operate in Kyrgyz Republic – Centerra Gold Inc. and Kaz Minerals. Both companies have foreign investments, therefore recognizing its financial activity according to IFRS reporting standards. The thesis will discuss the legislative basis of accounting and financial performance policies applied for Kyrgyz Republic in the theoretical part. Apart from this, theoretical part will briefly describe the methods of the analysis performed in practical part such as horizontal and vertical analysis. The mining industry worldwide and in Kyrgyz Republic would be covered by general information and actual challenges that impacting the end business results and potential risks. Understanding of the components of Balance Sheet and Income Statements will be explained in first part of theory in order to use those financial forms for practical analysis of the thesis. Practical part performs the detailed horizontal and vertical analysis of Financial position (Balance Sheet) and Financial performance (Income Statement) of the chosen leading mining companies operating in Kyrgyz Republic – Centerra Gold Inc. and Kaz Minerals. The analytical period is covering last four audited years based on published Annual reports 2017-2020 years. Both companies audited by KPMG on a group level. The comparative analysis of the financial indicators of chosen companies will be performed in the result and discussion part. The challenges occurred during the business activity in particular sector and country might be disclosed in discussion by providing some potential factors lately – political and social (Covid19). Overall, this thesis will try to point those mentioned aspects in order to illustrate possible challenges and benefits that companies could face. The conclusion of the thesis briefly describes actual situation based on performed analysis and updates happened in mining of Kyrgyz Republic.

Keywords

mining industry, IFRS standards, financial statement, Kyrgyz Republic, Centerra Gold, Kaz Minerals

Language used: English

Date on which the thesis was submitted / produced: 1. 12. 2021

Thesis defence

• Supervisor: Ing. Enikö Lörinczová, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics Policy and Administration / Business Administration