Raspadskaya : FY Financial results 2022 2022

FY 2022 Financial results

16 March 2023

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Highlights

• Revenue increased to $2.8bln from $2.1bln in 2021 with EBITDA remained at the level of previous year of almost $1.3bln
• The cash cost of coal concentrate per tonne reached $66/t, up 69% YoY following increase in prices of raw materials amid high inflation as well as lower mining volumes, lower yield at washing plants, implementation of the overburden compensation programme at the open pits to improve safety and change in MET calculation methodology
• Net profit amounted to $782m in 2022 ($875m in 2021)
• Net profit margin decreased to 28%, up from 42% in 2021
• Overall coal production (all grades) amounted to 21.5mt, a 6% decrease amid higher number of longwall moves and lower workload at Osinnikovskaya, Erunakovskaya-VIII and Alardinskaya mines due to higher gas content in the seams as well as complex geological conditions
• The Board of Directors has decided not to recommend the payment of dividend for 2022

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Health, safety and environment

• Tragically, there have been four fatal accidents at our facilities, which is unacceptable. The company will increase its focus on improving safety controls, as well as on the preventive measures taken so that such incidents do not recur
• To prevent the occurrence of catastrophic risks in coal mines, the Company is constantly implementing a set of initiatives to introduce the most modern Russian and international technologies and safety measures
• For critical risks, a monthly audit is carried out according to checklists and a rating of enterprises is formed with the visualization of problem areas for the subsequent preparation of corrective measures
• We continued our environmental projects with the aim to achieve targets which were set for 2030: a 75% reduction in methane emissions from degassing, as well as 40% reduction in dust emissions from coal transportation and storage
• In 2022 our methane utilisation units processed 13kt or 10% of methane from degassing

LTIFR*

Fatalities

5,12	9

4,03

2,99

2,76

4

4

2

20192020202120222019202020212022

Source: Company data *Data includes contractors starting from 2020

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Operational performance

• Total raw coal extraction was 21.5mt, a YoY decrease of 6% YoY amid higher number of longwall moves and lower workload at Osinnikovskaya, Erunakovskaya- VIII and Alardinskaya mines due to higher gas content in the seams as well as complex geological conditions
• Concentrate yield down by 4 percentage points to 69.8%. This was caused by an increase in ash content at Alardinskaya, Erunakovskaya-VIII, Osinnikovskaya and Esaulskaya mines as well as at Raspadsky and Koksovy open-pits due to more complex mining and geological conditions

Production volumes of raw coking coal by mine, kt

Mines and coal grade	2022	2021	Change	Change, %
Raspadskaya (GZh)	4 579	4 618	(39)	(1)
Raspadsky, open-pit (GZh, GZhO)	4 762	3 168	1 594	50
Raspadsky, open-pit (oxidised)	60	70	(10)	(14)
Raspadskaya-Koksovaya (K, KO)	1 027	1 097	(70)	(6)
Koksovy, open pit (OS, KS)	1 891	1 521	370	24
Koksovy, open pit (oxidised)	76	56	20	36
Alardinskaya (KS)	1 698	3 232	(1 534)	(47)
Osinnikovskaya (Zh)	1 169	1 382	(213)	(15)
Erunakovskaya-VIII (Zh)	1 659	2 305	(646)	(28)
Esaulskaya (GZh)	1 488	2 532	(1 044)	(41)
Uskovskaya (GZh)	2 538	2 840	(302)	(11)
Mezhegeyugol (2Zh)	558	-	558	100
TOTAL	21 505	22 821	(1 316)	(6)

Source: Company data

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