The report on the company's financial results for Q3 and 9 months of 2019

metalloinvest (the"Company"), a leading manufacturer and supplier of iron ore and hot briquetted iron (HBI) on the world market, one of the regional producers of high quality steel, today announces unaudited interim financial results according to IFRS for the 3rd quarter and 9 months ended September 30, 2019.

management Comments

Alexey Voronov, Director of Finance at Management company metalloinvest, commented:

In the third quarter remained weak dynamics of prices for steel with the growth in average prices for iron ore. As a result, for the first nine months of 2019 consolidated EBITDA of the Company amounted to $ 2.1 billion, mainly due to growth in EBITDA of the mining segment by 25%. Due to the high degree of processing of iron ore products and competitive costs, the profitability of the business remains sustainable. The debt burden is maintained at a comfortable level – Net debt / LTM EBITDA amounted to 1.29 x at the end of the reporting period".

Financial results

• Revenue 5 328 million dollars. (-0,3% compared to 9M 2018)


• 2 EBITDA of $ 115 million. (-3,1% m/m )


• the EBITDA Margin of 39.7% vs. 40,9% in 9M 2018


• Net profit 1 484 million dollars. (+19,2% y/y)


• Net debt 3 687 million. (+9,8% compared to December 31, 2018)


• Net debt / LTM EBITDA of 1.14 1.29 x against x on December 31, 2018


• Capital cost of 352 million dollars. (+10,0% m/m)




operating results




• Iron ore 30.1 million tons (+0.2 percent m/m)


• Pellets 21.2 million tonnes (+2.2% y/y)


• HBI/DRI 5.9 million tonnes (+1.3% y/y)


• Cast iron 2.1 million tonnes (-7,0% m/m)


• Steel 3.6 million tons (-2,7% y/y)






corporate events







Operating activities and capital expenditures




• the implementation of coordination Council of CHTPZ Group


• Testing of a pilot batch of briquettes production UPPC for iron smelting at Ural Steel


• Purchase a new high-performance equipment for the GOK and the MMPP


• Beginning of construction of ball mill OEMK


• Modernisation of the heating plant at Ural Steel


• commissioning of the 1st stage of the technology of fine screening derrick at MMPP




Financial activities




• conclusion of a framework agreement with 12 partner banks to attract ECA-financing


• Opening new lines of credit pre-export financing ("PXF-2019"), 300 million euros


• the Announcement of early redemption of Eurobonds-2020 with a nominal value of 270,6 million dollars.




Social responsibility and corporate governance




• Victory in the XVI contest "Enterprise of mining and metallurgical complex with high social effectiveness" in 2018


• Adoption of a Policy on human rights and Code of ethics


• Joining the UN Global compact – international initiative in the field of sustainable development