COAL MINING SEGMENT
USD mln Q3 2021 Q2 2021 % 9M 2021 9M 2020 %
Revenue 116 77 50.6% 253 133 90.2%
EBITDA 62 30 106.7% 117 6 19.5x
EBITDA margin, % 53.4% 39.0% 14.4 p.p. 46.2% 4.5% 41.7 p.p.
+ 50.6% Q-o-Q
The coal mining segment's revenue for Q3 2021 increased by 50.6% q-o-q to USD 116 mln as a result of
REVENUE higher coal concentrate prices amid favourable market dynamics. Revenue for 9M 2021 grew by 90.2% y-o-y
to USD 253 mln.
The segment's EBITDA for Q3 2021 more than doubled to USD 62 mln, supported by current positive dynamics
in coal concentrate prices in global markets. EBITDA for 9M 2021 increased to USD 117 mln, driven by
higher prices and sales volumes of coal concentrate.
CASH FLOW AND FINANCIAL POSITION
OF MMK GROUP
-- In Q3 2021, CAPEX decreased by 30.3% q-o-q to USD 235 mln, reflecting the implementation
and financing schedule for projects pursued under the Group's strategy. Year-on-year, CAPEX grew
53.5% to USD 714 mln.
-- An increase in export sales with longer lead times amid high global prices for steel and
CAPEX AND key raw materials, along with the launch of a casting and rolling module at our Turkish asset,
CASH FLOW resulted in a USD 209 mln working capital build-up in Q3 2021.The net working capital to
revenue ratio increased by 3.1 p.p. q-o-q in Q3 2021 to 13.6%.
-- FCF for Q3 2021 decreased by 25.0% q-o-q to USD 409 mln. Year-on-year, FCF grew by almost
2.5 times to USD 1,079 mln in 9M 2021.
-- The Group's total debt at the end of Q3 2021 was USD 1,040 mln, up from USD 996 mln in Q2
2021. Year-on-year, the debt burden for 9M 2021 also increased (from USD 946 mln in 9M 2020).
DEBT -- As at the end of Q3 2021, the Group held USD 899 mln in cash and deposits in its accounts.
BURDEN
-- The Group's net debt as at the end of Q3 2021 totalled USD 141 mln while its net debt/
EBITDA ratio was 0.04x, one of the lowest among leading global steelmakers.
Dividends -- The Group remains committed to its dividend policy and previous statements. Considering our
high margins, the Board of Directors is convinced that the Group sits in a stable position and can
OF MMK GROUP recommend the shareholders to approve the payment of a dividend of RUB 2.663 per share (100% of FCF
for the quarter) for Q3 2021.
-- A retracement in the global market coupled with the seasonal business slowdown in Russia,
will exert pressure on the Group's sales in the fourth quarter. However, the increase in output by
the Turkish asset will support sales.
-- High utilisation of equipment that manufactures premium products will be beneficial for the
Group's sales portfolio, including an increase in capacity utilisation rate of Mill 5000 amid higher
demand from pipe industry.
OUTLOOK
-- CAPEX for Q4 2021 is expected to grow q-o-q, in line with the implementation schedule for
projects pursued under the Group's strategy.
-- Operational excellence measures implemented under MMK's updated strategic initiatives will
further boost the Group's profitability in Q4 2021.
MMK Management will hold a conference call to discuss these financial results
-- Date:
CONFERENCE CALL 25 October 2021
-- Time:
4:30 pm Moscow time
2:30 pm London time
9:30 am New York time
Russia UK USA
Local access +7 495 213 1767 +44 (0) 330 336 9125 +1 929-477-0324
Toll free 8 800 500 9283 0800 358 6377 800-458-4121
-- Conference ID:
in Russian - 6442628
in English - 8216043
-- Webcast:
To register for the webcast, please use this link.
The call recording will be available for seven days on the following numbers:
Call recording ID:
in Russian - 6442628
in English - 8216043
Russia UK USA
Local access 8 10 800 2702 1012 +44 (0) 207 660 0134 +1 719-457-0820
-- A presentation of the financial results and the IFRS financial statements can be found at:
https://mmk.ru/en/investor/results-and-reports/financial-results/
ABOUT MMK
Please
MMK is one of the world's largest steel producers and a leading Russian metals company. The Group's subscribe to
operations in Russia include a large steel-producing unit encompassing the entire production chain, from our
the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel official MMK
products, with a predominant share of premium products. In 2020, MMK produced 11.6 mln tonnes of crude channel on
steel and sold 10.8 mln tonnes of commercial steel products. Telegram
to be the
??K is an industry leader in terms of production costs and margins. Group revenue in 2020 totalled USD first to
6,395 mln, with an EBITDA of USD 1,492 mln. MMK boasts the industry's lowest debt burden. Net debt/EBITDA know
ratio was -0.06? at the end of 2020. The Group's investment-grade rating is confirmed by the leading about key
global rating agencies Fitch, Moody's and S&P. MMK news.
MMK's ordinary shares are traded on the Moscow Exchange, while its depositary receipts are traded on the
London Stock Exchange. Free float amounts to 20.2%.
INVESTOR RELATIONS
DEPARTMENT
Veronika Kryachko KEY UPCOMING EVENTS IN 2021
+7 915 380 6266
kryachko.vs@mmk.ru Financial calendar
ESG 26-28 October Non-deal roadshow (NDR), online
DEPARTMENT 8-9 November GS 13th Annual CEEMEA 1x1 Conference, online
Yaroslava Vrubel 8-9 November 10th Global Natural Resources Conference, online
+7 982 282 9682 COMMUNICATIONS DEPARTMENT Dmitry Kuchumov +7 985 219 2874 kuchumov.do@mmk.ru Oleg Egorov +7 903 971 8837 egorov.oa@mmk.ru -----------------------------------------------------------------------------------------------------------------------
ISIN: US5591892048 Category Code: QRT TIDM: MMK LEI Code: 253400XSJ4C01YMCXG44 Sequence No.: 125054 EQS News ID: 1243062 End of Announcement EQS News Service =------------------------------------------------------------------------------------
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1243062&application_name=news
(END) Dow Jones Newswires
October 25, 2021 03:00 ET (07:00 GMT)
