METALLOINVEST announces financial results for the first half of 2012

METALLOINVEST, a leading global iron ore and HBI producer based in Russia, today announces its audited IFRS financial results for six months ended June 30, 2012.

Financial Highlights

- Consolidated revenue US$ 4,458 million (-7.6% h-o-h[1])
- EBITDA US$ 1,642 million (-13.1%)
- EBITDA margin 36.8% vs. 39.2% in H2 2011
- Net Income US$ 1,312 million (+187.1%)
- Net Debt[2] US$ 6,108 million (+37.8%)
- Net Debt / EBITDA 1.7x vs.1.1x in H2 2011
- Capital expenditures US$ 210 million (-5.8%)
- Total assets US$ 12,126 million (+15.9%)
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[1] Hereinafter
[2] Net Debt is accounted as long-term borrowings plus short-term borrowings minus cash and cash equivalents

Production Highlights

- Iron ore 19.9 million tonnes (-0.3%)
- Pellets 11.5 million tonnes (+2.7%)
- HBI/DRI 2.7 million tonnes (+3.9%)
- Hot metal 1.1 million tonnes (-8.3%)
- Crude steel 2.8 million tonnes (-4.6%)

Corporate Highlights

Finance
- Debut issue of RUR-denominated unsecured corporate bonds amounting to RUR 25,000 million (US$ 853 million) with maturity of 10 years and a put option in 2015 at the 9.0% coupon rate
- Partial repayment of US$ 700 million under the terms of the existing PXF loan ahead of the schedule
- Purchase of RUR-denominated promissory notes for US$ 2,479 million
- Payment of dividends on ordinary shares in the amount of US$ 290 million for the first 9 months of 2011
- Disposal of Metalloinvesttrans for US$ 569 million
- Return to a 4% stake in Norilsk Nickel
- Confirmation of ‘BB-‘/Stable rating by Fitch
- Assignment of ‘BB-‘ with a Positive outlook by S&P

Investments
- Ongoing construction of Pellet Plant #3 at MGOK
- Launch of a new vacuum degasser at Ural Steel
- Start of an oxygen facility construction at OEMK
- Signing of HBI-3 construction contract with Siemens and MIDREX consortium

Social responsibility
- Signing of Social Partnership Programmes for 2012 with the Government of Belgorod and Administration of Kursk Regions