OREANDA-NEWS. EVRAZ Q1 2013 Production Report and Interim Management Statement
Date of publication: 18.04.2013

EVRAZ plc (LSE: EVR) today releases its operational results for the first quarter of 2013 and the Interim Management Statement.

Q1 2013 OPERATIONAL HIGHLIGHTS and RECENT DEVELOPMENTS:

•       Both consolidated crude steel production and output of steel products (net of re-rolled volumes) increased by 11% due to lower downtime at steelmaking capacities in Q1 2013 compared to Q4 2012

•       Consolidated production of finished steel goods slightly increased (+2% vs. Q4 2012)

•       Production at EVRAZ ZSMK rail mill recommenced on 15 January 2013 following the successful completion of the modernisation project

•       EVRAZ NTMK completed the implementation of the PCI project

•       Consolidated output of iron ore products remained broadly flat at 5.2 million tonnes of saleable iron ore products

•       Raw coking coal production rose by 9%, with a 14% increase at Yuzhkuzbassugol and 3% at Raspadskaya 

•       In February 2013, the Company commissioned Yerunakovskaya VIII mine which has a full production capacity of 2.5 million tonnes of coking coal per annum to be reached by the year-end

•       Average selling prices for most key steel product groups marginally increased or remained flat compared to Q4 2012

•       In January 2013, EVRAZ completed the acquisition of an indirect controlling interest in Raspadskaya for USD 964 million, payable in equity and cash consideration, bringing effective interest to 82%

•       In March 2013, EVRAZ executed a non-binding term sheet for potential sale of EVRAZ Highveld

•       In April 2013, the Company acquired a 51% stake in Timir, a joint venture with Alrosa, created for the development of iron ore deposits in Yakutia, Russia for ca. USD 160 million

•       In April 2013, Evraz Group S.A., a wholly owned subsidiary of EVRAZ, priced an issuance of USD 1,000 million 7-year Eurobonds with a coupon of 6.50% per annum

•       In Q1 2013 preliminary capital expenditure totalled USD 255 million