Business news from Ukraine

INGOK RAISES PRODUCTION OF IRON ORE CONCENTRATE IN 2020

Inhulets mining and processing plant (InGOK, Kryvy Rih, Dnipropetrovsk region), part of Metinvest Group, in 2020 increased production of iron ore concentrate, according to recent data, by 7.7% compared to the previous year, to 11.9 million tonnes.
The enterprise told Interfax-Ukraine that in December it produced 1.019 million tonnes of concentrate with a 66.13% iron content, while extracted 2.608 million tonnes of crude ore.
As reported, InGOK in 2019 increased production of iron ore concentrate by 1.2% compared to the previous year, to 11.052 million tonnes.
The enterprise specializes in extraction and processing of ferruginous quartzites of Inhulets deposit, located in the southern part of the Kryvy Rih iron ore basin. It produces two types of iron ore concentrate with an iron content of 64.8% and 67%.
The production capacity is 14 million tonnes of iron ore concentrate per year.
InGOK is part of Metinvest Group, the main shareholders of which are PrJSC System Capital Management (SCM, Donetsk, 71.24%) and the Smart-Holding (23.76%).
Metinvest Group’s management company is Metinvest Holding LLC.

, ,

ILLICH IRON AND STEEL WORKS INCREASES ROLLED PRODUCTS OUTPUT IN 2020

Mariupol Illich Iron and Steel Works (Donetsk region), a member of the Metinvest Group, in 2020 increased the production of general rolled products, according to recent data, by 12.4% compared to the previous year, to 3.67 million tonnes.
As the enterprise told the Interfax-Ukraine, steel production during this period increased by 13.7%, to 4.05 million tonnes, cast iron by 4.4%, to 4.65 million tonnes, and sinter by 12.8%, to 12.34 million tonnes.
In December, Mariupol Illich Iron and Steel Works produced about 320,000 tonnes of general rolled products, 345,000 tonnes of steel, 330,000 tonnes of cast iron, and 1.06 million tonnes of sinter.
Illich Iron and Steel Works is part of Metinvest Group, the main shareholders of which are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the managing company of Metinvest Group.

, , , ,

UKRAINIAN LARGEST METAL COMPANY METINVEST IN SEPT INCREASES EBITDA BY 13%

Metinvest B.V.’s revenue (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in September 2020 increased by 8.8%, or $74 million, compared to the previous month – to $912 million from $838 million.
According to the published preliminary unaudited consolidated monthly results of the company’s financial statements on Thursday, the total EBITDA in September amounted to $244 million, which is $28 million higher than in August ($216 million), while EBITDA from participation in the joint venture was $37 million (in August – $48 million).
According to the report, the adjusted EBITDA of the metallurgical division of the group for September 2020 amounted to “plus” $115 million (in August, “plus” $91 million), including $1 million from participation in the joint venture ($7 million); EBITDA of the mining division – $134 million (in August – $134 million), including from the joint venture – $36 million ($41 million). The management company spent $4 million ($6 million).
Total revenue in September consisted of $727 million ($671 million in August) for the Metallurgical Division, $235 million ($258 million) for the mining division, and intragroup sales of $50 million ($91 million).
The total debt of the company in September decreased by$ 90 million compared to August – to $2.927 billion from $3.017 billion, while the volume of funds increased by $126 million – to $649 million from $523 million.
Funds used in investment activities amounted to $65 million, in financial activities – $94 million.

,

CENTRAL GOK INCREASES PRODUCTION OF CONCENTRATE BY 10% IN TEN MONTHS

Central Mining and Processing Plant (Central GOK, Kryvy Rih, Dnipropetrovsk region), a member of Metinvest Group, in January-October of this year, according to recent data, reduced the production of pellets by 2% compared to the same period last year – up to 1.86 million tonnes.
As the Interfax-Ukraine agency was informed in the company, 76,000 tonnes of pellets were produced in October, while in September – 202,500 tonnes.
For the ten months of 2020, the production of iron ore concentrate increased by 10.3% compared to the same period in 2019, up to 4.079 million tonnes, including 443,970 tonnes produced in October (in September – 399,520 tonnes).
“The reason for the decrease in production of pellets in October compared to the previous month is the autumn repairs at the pelletizing plant – the work was carried out for 21 days,” the company reported.
As reported, Central GOK in 2019 increased the production of pellets by 4.3% compared to the previous year, to 2.402 million tonnes, iron ore concentrate, by 0.5%, to 4.436 million tonnes.
Central GOK is one of the five largest producers of mining raw materials in Ukraine. It specializes in extraction and production of iron ore raw materials – concentrate with an iron content of 65% and 68.2%, as well as pellets with an iron content of 63.9%

, ,

METINVEST BONDS 2027 JOIN BENCHMARK EM INDEX

Bonds of Metinvest B.V. (Netherlands), the parent company of the Metinvest mining and metals group, due in 2027, is included in in the JPMorgan Corporate Emerging Markets Bond Index (CEMBI) series.
According to the company’s press release issued on Wednesday, the CEMBI indices provide a global benchmark tracking U.S.-dollar-denominated debt issued by emerging market corporations.
At the same time, the eurobond due in 2027 was issued on October 1, 2020 following the successful completion of a liability management exercise to extend the maturity of the group’s outstanding eurobonds. It met the criteria to be included in the CEMBI Broad and CEMBI Broad Diversified high-yield indices after a regular review on October 30, 2020. As a result, Metinvest’s U.S.-dollar-denominated eurobonds are all included in these two indices for the high-yield segment.
In addition, the eurobond due in 2029, which was issued on 17 October 2019, has effectively replaced the eurobond due in 2023 in the CEMBI and CEMBI Diversified high-yield indices after the size of the latter decreased to below $500 million.

,

METINVEST SEES EBITDA RISE BY 5.9%

The income of Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in August 2020 decreased by 7.9%, or $72 million, to $838 million from $910 million, compared to the previous month.
According to the published preliminary unaudited consolidated monthly results of the company’s financial statements, the overall rate of EBITDA amounted to $216 million in August, which is $12 million more than in July ($204 million), while EBITDA from participation in the joint venture was $48 million (in July $30 million).
According to the report, the adjusted EBITDA of the metallurgical division of the group for August 2020 amounted to ‘plus’ $91 million (in July ‘plus’ $57 million), including $7 million from participation in the joint venture (‘minus’ 5 million); EBITDA of the mining division totals $134 million (in July $154 million), including income from the joint venture $41 million ($35 million). The management company’s expenses amounted to $6 million ($6 million).
Total income in August consisted of $671 million ($700 million in July) from the metallurgical division, $258 million ($283 million) from the mining division, and intercompany sales of $91 million ($73 million).
The company’s total debt in August decreased by $64 million, to $3.017 billion from $3.081 billion, compared to July, while the total amount of money decreased by $88 million, to $523 million from $611 million.
Funds used in investment activities amounted to $54 million, in financial activities to $71 million.

,