Facts and figures№ 1 June 2019

KEY ADVANTAGES

Metalloinvest is a global leader in the production of high value-added iron ore products and a regional producer of high-quality steel.



CREDIT RATINGS

High credit ratings by international and Russian agencies confirm Metalloinvest’s strong, competitive position and financial stability.


Expert RA “ruAA ”

In May 2019, Expert RA upgraded Metalloinvest’s credit status rating to “ruAA” with a stable outlook from “ruAA-”/Positive.

The key factors behind the rating upgrade were the company’s positive financial results, including growth in free cash flow in 2018, and the progress achieved in improving corporate governance. Analysts also positively evaluated the increased share in supplies of high value-added products, improved deleveraging and liquidity.

Fitch “BB+”

In May 2019, Fitch upgraded the company’s long-term credit rating to “BB+” with a stable outlook from “BB”/Positive.

According to Fitch’s statement, the rating upgrade reflects the company’s continually strong operational profile with strategic focus on high value-added products, competitive cost position, healthy liquidity, improved financial metrics and incorporates the progress the company has made to improve the level of corporate governance.

Standard and Poor’s “BB+”

In February 2019, S&P upgraded the company’s long-term credit rating to “BB+” with a stable outlook from “BB”/Stable.

According to a statement published by S&P, Metalloinvest’s rating upgrade to “BB+” reflects the company’s continuous debt reduction over recent years as well as strong operating and financial results achieved in 2018.

Moody’s “Ba1”

In March, Moody’s upgraded the company’s corporate rating to “Ba1” with a stable outlook from “Ba2”/Positive.

Moody’s analysts highlighted that the company has a strong position in the iron ore product market due to its low production costs, robust profitability, high share of value-added products (pellets and HBI), exceptional iron ore reserves with a ferrous content of up to 70% in iron ore concentrate, integration in the steel business, diversified customer base, long-term debt maturity profile and conservative liquidity management.

Metalloinvest holds strong and competitive market positions, partly thanks to its exceptional iron ore reserves with a ferrous content of up to 70% in iron ore concentrate

COMPANY ASSETS

Mining Segment

The company’s Mining Segment comprises two iron ore mining and processing plants -- Lebedinsky GOK (Belgorod Region) and Mikhailovsky GOK (Kursk Region). The deposits worked by Lebedinsky GOK and Mikhailovsky GOK are located in one of the world’s largest iron ore basins — the Kursk magnetic anomaly.

Lebedinsky GOK (LGOK)

Russia’s only producer of HBI. Carries out open-cast mining of iron ore at a quarry in the Belgorod Region, the biggest in the world for extracting non-fuel minerals according to the Guinness Book of Records.

The main products produced at Lebedinsky GOK are:

• iron ore concentrate

• non-fluxed pellets

• fluxed pellets

• HBI

Key projects in recent years:

2018 Launch of the integrated management system – digital transformation of the company

2017 Launch of the HBI-3 Plant with a production capacity of 1.8mn tonnes a year – one of the biggest in the world

2016 Reconstruction of the beneficiation plant – increased concentrate production capacity


Lebedinsky GOK

Mikhailovsky GOK (MGOK)

Carries out open-pit mining at an iron ore deposit in the Kursk Region.

The main products produced at Mikhailovsky GOK are:

• iron ore concentrate

• non-fluxed pellets

• fluxed pellets

Key projects in recent years:

 

2018 Modernisation of Pellet Plant #3 – resulted in a 5% increase in productivity

2018 Launch of an integrated management system – digital transformation of the company

2017-2018 Construction and introduction into industrial operation of a concentrate complex – increased production of premium quality pellets

2015 Launch of Pellet Plant #3 with a capacity of 5mn tonnes of pellets a year – one of the biggest in Russia

 

With a production capacity of 5 million tonnes of pellets per year, Pellet Plant #3 is one of the largest facilities in Russia



Mikhailovsky GOK

Steel Segment

Metalloinvest’s Steel Segment comprises Oskol Electrometallurgical Plant (OEMK, Belgorod Region) and Ural Steel (Orenburg Region). The company is the regional leader in niche steel grades. OEMK and Ural Steel together produce over 2,000 steel grades.

OSKOL ELECTROMETALLURGICAL PLANT (OEMK)

Russia’s only integrated steel company that carries out direct reduction of iron and smelting in electric furnaces, which allows for steel production that is virtually free from harmful impurities and residual elements.

The main products produced at OEMK are:

• DRI

• square and rectangular sectioned concast billets

• rolled steel: bars, square billets, pipe billets

Key projects in recent years:

2018 Launch of new water descaling equipment for billets at the Rolling Mill 350

2018 Technical re-equipping of the water-cooling system designed for the simultaneous operation of five continuous casting machines

2018 Launch of a storage facility for finished products – provided flexibility to plan shipments of large volumes of rolled steel for key customers

2017 Modernisation of DRI unit #2, including replacement of the reformer tubes – increased output of metallised pellets

2017 Launch of a reducing and sizing block at the Rolling Mill 350 – increased SBQ quality

2016 Modernisation of the waste gas purification system in the electric arc furnace shop – total emissions cut by more than half


Oskol Electrometallurgical Plant

Ural Steel

An integrated company that operates blast furnace, steelmaking and metal rolling facilities.

The main products produced at Ural Steel are:

• Cast round and rectangular billets;

• Flat products: bridge building steel, shipbuilding steel, strips, structural steel

• Merchant pig iron

Key projects in recent years:

2018 Launch of the Roller Treatment Furnace #1 and Heat Treatment Machine #1 Complex – improved heavy plate characteristics

2018 Modernisation of the vacuum degasser – increased the unit’s productivity by 1.5x

2017 Reconstruction of Continuous Casting Machine #1 for production of 455mm diameter wheel billets


Ural Steel        


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