NLMK clarifies the approach to capital allocation in 2020

26 March 2020, 18:00

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Investments. In connection with the growing volatility in the global markets on the backdrop of the spread of coronavirus, the Group revokes the previously announced forecast for the total volume of the investment program to 2020 at the level of $1,1-1,2 billion for its revision downward. The launch of a number of development projects may be delayed. The company will continue implementing scheduled in 2020, major capital repairs in the blast furnace and steelmaking NLMK.

Liquidity. At the moment, cash and cash equivalents and short-term liquid financial investments on the balance sheet of the company is $1.56 billion (+79% compared to December 31, 2019). Additionally, the amount of available credit lines is estimated at $0.8 billion to the Current level of liquidity creates a margin of safety to ensure smooth operations of the company.

debt portfolio Management. the company's Net debt is $1.9 billion.
(+5% by 31 December 2019). The average cost of the debt portfolio remain low at 3.16 percent. The company's liquidity exceeds short-term debt, including revolving lines, which are planned to extend.