Eurasian Natural Resources Corp Plc IMS & Q3 Production Report (4044S)

TIDMENRC

RNS Number : 4044S

Eurasian Natural Resources Corp Plc

07 November 2013

7 November 2013

Eurasian Natural Resources Corporation PLC

November 2013 Interim Management Statement and

Production Report for the Third Quarter ended 30 September 2013

London - Eurasian Natural Resources Corporation PLC ('ENRC' or, together with its subsidiaries, the 'Group') today announces its November 2013 Interim Management Statement and its Production Report for the Third Quarter ended 30 September 2013.

Highlights for the Three Months ended 30 September 2013

o Ferroalloy and Energy Divisions, as well as iron ore concentrate production, operated at full available capacity. Total saleable copper contained production increased 105% against the corresponding period in 2012;

o Revenue marginally below the comparable period in 2012 due to lower commodity prices;

o Total operating costs broadly flat against the previous period;

o Gross available funds of US$0.6 billion and net debt of US$6.1 billion.

Recent Developments

o Offer from Eurasian Resources Group B.V. declared wholly unconditional. Delisting expected on 25 November;

o Sufficient new debt facilities available under the offer document dated 24 June 2013 from Eurasian Resources Group B.V. to refinance the Group's existing debt facilities that are subject to change of control provisions.

"The Group has performed well over the past quarter, with the highest level of saleable ferroalloy production in the past 2 years and highest ever quarterly production of iron ore concentrate. Our consistent operating performance in our key commodities has helped to mitigate the effect of a lower pricing environment and I am pleased that our costs within Kazakhstan have also stabilised."

Felix J Vulis, Chief Executive Officer

For further information, please contact:

 
 ENRC: Investor Relations 
 Mounissa Chodieva           [phone] 
 Charles Pemberton           [phone] 
 Alexandra Leahu             [phone] 
 
 
 ENRC: Press Relations 
 Julia Kalcheva           [phone] 
 
 Capital MSL (PR advisors): 
 Richard Campbell         [phone] 
  Ian Brown                [phone] 
 

Forward-looking Statements

This announcement includes statements that are, or may be deemed to be, 'forward-looking statements'. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms 'believes', 'estimates', 'plans', 'projects', 'anticipates', 'expects', 'intends', 'may', 'will', or 'should' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include matters that are not historical facts or are statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industries in which the Group operates. Forward-looking statements are based on current plans, estimates and projections, and therefore too much reliance should not be placed upon them. Such statements are subject to risks and uncertainties, most of which are difficult to predict and generally beyond the Group's control. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. The Group cautions you that forward-looking statements are not guarantees of future performance and that if risks and uncertainties materialise, or if the assumptions underlying any of these statements prove incorrect, the Group's actual results of operations, financial condition and liquidity and the development of the industry in which the Group operates may materially differ from those made in, or suggested by, the forward-looking statements contained in this announcement. In addition, even if the Group's results of operations, financial condition and liquidity and the development of the industry in which the Group operates are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in future periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, commodity prices, changes in regulation, currency fluctuations, changes in business strategy, political and economic uncertainty. Subject to the requirements of the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules or any applicable law or regulation, the Group expressly disclaims any obligation or undertaking publicly to review or confirm analysts expectations or estimates or to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any changes in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in this announcement should be construed as a profit forecast. The forward looking statements contained in this document speak only as at the date of this document.

A copy of this announcement will be available on ENRC's website at www.enrc.com.

November 2013 Interim Management Statement ('IMS')

The information in the IMS, unless stated otherwise, relates to the nine months ended 30 September 2013, and is compared to the corresponding nine months of 2012. The Offer dated 24 June 2013 from Eurasian Resources Group B.V. for the entire issued and to be issued share capital of ENRC was declared wholly unconditional on 25 October 2013 and ENRC is expected to be delisted on 25 November. Sufficient new debt facilities are available under the offer from Eurasian Resources Group BV to refinance the existing debt facilities of ENRC that are subject to change of control provisions. Except as set out in this statement, there have been no other material events, transactions or changes to the financial position of the Group since 30 June 2013. The Group's performance trends from 30 September 2013 to date remain broadly consistent with those described herein.

Revenue

Group revenue in the nine months of 2013 was marginally below the corresponding period in 2012, despite a weak market environment with lower realised commodity prices. A solid operational performance resulted in higher sales volumes in the Group's key commodities, which largely offset the negative impact of lower prices. Revenue benefitted from increased sales of high-carbon ferrochrome, chrome ore, alumina and the contribution of Shubarkol sales for the full nine month period of 2013. Revenue was further supported by increased copper production due to the commissioning of both Frontier and the copper SX/EW at Chambishi.

Production at the Ferroalloys Division was in line with the corresponding period in 2012. There was a marked decline in the Division's revenue due to lower commodity prices, particularly relating to the price of high-carbon ferrochrome, which decreased by 10%. This was partially offset by higher sales volumes of high-carbon ferrochrome, ferrosilicochrome and chrome ore. Average ferroalloys prices declined by 10% and chrome ore by 12% against the same period in 2012.

Production of iron ore pellet was below the corresponding period, reflecting market demand, while iron ore concentrate production volumes increased to compensate for the decline in pellets. The Division's revenue was further affected by lower iron ore spot prices. Average realised prices for iron ore were 3% below the comparable period.

The Alumina and Aluminium Division operated below capacity for both alumina and aluminium. However total output was higher for the nine months of 2013 as the Division overcame the production difficulties experienced in 2012. Lower realised prices impacted revenue, which was slightly below the level of 2012. The average realised price for aluminium was 5% below the comparable period.

Revenue in the Other Non-ferrous Division increased markedly compared to the same period of 2012. The start-up of copper concentrate production at Frontier and copper solvent extraction production at Chambishi were the main drivers behind the growth in volumes. Production at Boss Mining was slightly below 2012 due to power constraints. The average realised price for cobalt fell 10% and copper by 8% against the comparable period of 2012.

The Energy Division operated at full available capacity. Production of coal was higher in the nine months of 2013 due to Shubarkol volumes being accounted for the whole period of 2013. Electricity sales exhibited good growth against the comparable period in 2012. However, the Division's results were affected by the lower tariff cap set for EEC electricity in 2013 that resulted in revenue deteriorating against 2012. The realised price at EEC declined 46% compared to 2012, while average realised coal prices were broadly flat.

Costs

Total operating costs for the Group stayed broadly flat on the comparable level of 2012. The main drivers for increased costs in 2013 were higher production and sales volumes in the Other Non-ferrous and Energy Divisions. Total depreciation and amortisation ('D&A') costs were approximately 6% above 2012 mainly due to the inclusion of Shubarkol and additions to PP&E in the Ferroalloys and Iron Ore Divisions. Distribution costs were broadly in line with 2012 while general and administrative expenses reduced due to a lower level of sponsorships and donations. Exploration costs in both Brazil and Africa were significantly below the comparable level of 2012.

Balance Sheet

The Group had gross available funds as at 30 September 2013 of US$617 million and gross debt of US$6.1 billion.

Capital expenditure and projects update

Principal areas of capital expenditure were:

   --     Ferroalloys Division: the new Aktobe ferroalloys plant; 
   --     Iron Ore Division: mine expansion and development; 
   --     Alumina and Aluminium Division: completion of the anode plant and sustaining programme; 
   --     Other Non-ferrous Division: development of the Frontier mine; 
   --     Energy Division: reconstruction of power unit 6 and sustaining programme. 

Production Report for the Third Quarter ended 30 September 2013

The information in this Production Report, unless stated otherwise, relates to the three months ended 30 September 2013, and is compared to the corresponding three months ended 30 September 2012. Production volumes for Q2 2013 are provided for additional information.

The Ferroalloys and Energy Divisions operated at full available capacity for the quarter. The Iron Ore Division operated at full available capacity for all products except saleable pellets reflecting market demand. Alumina and Aluminium Division operated below capacity for alumina and aluminium due to reduced aluminium prices and a decline in bauxite quality. In the Other Non-ferrous Division, saleable copper contained production increased significantly against the corresponding period.

-- Ferroalloys Division.Overall gross ferrochrome production increased by 2.6% compared to Q3 2012, with a 4.6% increase in high-carbon ferrochrome. Saleable high-carbon ferrochrome production increased 5.8%. Total saleable ferroalloys production for the quarter increased 3.9% on Q3 2012.

-- Iron Ore Division.Iron ore extraction and primary concentrate production increased by 1.3% and 1.7% respectively, against the comparable period in 2012. Saleable concentrate production increased 27.6% and saleable pellet production decreased 29.4% against Q3 2012, with total saleable product increasing 4.0% against Q3 2012.

-- Alumina and Aluminium Division. Bauxite extraction and alumina production decreased 2.7% and 13.3% respectively against Q3 2012. Aluminium production was in line with Q3 2012.

-- Other Non-ferrous Division. Production of saleable copper in Q3 2013 increased 105.1% due to the inclusion of Frontier. Saleable cobalt production increased 24.4% versus Q3 2012.

-- Energy Division. Coal extraction at EEC was broadly in line with Q3 2012 level and 12.3% higher at Shubarkol for the period. Electricity generation increased 9.0% compared to Q3 2012.

FERROALLOYS DIVISION

Ore Mining and Processing

 
                                           Q3             Q3 13/             Q3 13/ 
                                         2013   Q3 2012    Q3 12   Q2 2013    Q2 13 
                                                          change             change 
==============================  =====  ======  ========  =======  ========  ======= 
 Chrome ore 
 Ore Extraction (Run-of-Mine,    000 
  'ROM')                          t     1,205     1,184     1.8%     1,220   (1.2%) 
   Grade, % Cr2O3                        38.6      39.1               38.7 
                                 000 
 Total Ore Processed              t     1,561     1,577   (1.0%)     1,599   (2.4%) 
   Grade, % Cr2O3                        37.7      37.4               37.2 
                                 000 
 Saleable ore production          t       992     1,006   (1.4%)       971     2.2% 
   Grade, % Cr2O3                        47.8      47.5               47.9 
 Internal consumption            000 
  of saleable ore                 t       785       771     1.8%       774     1.4% 
   Percentage                           79.1%     76.6%              79.7% 
 
 Manganese ore 
                                 000 
 Ore Extraction ('ROM')           t       738       796   (7.3%)       701     5.3% 
   Grade, % Mn                           19.9      20.6               20.5 
                                 000 
 Total Ore Processed              t     1,241     1,088    14.1%     1,111    11.7% 
   Grade, % Mn                           16.7      18.6               17.4 
 Saleable concentrate            000 
  production                      t       327       313     4.5%       300     9.0% 
   Grade, % Mn                           36.3      36.2               36.0 
 Internal consumption            000 
  of saleable concentrate         t        85        82     3.7%        77    10.4% 
   Percentage                           26.0%     26.2%              25.7% 
 

Note : Numbers in the table might not add up due to rounding

Chrome ore extraction in Q3 2013 amounted to 1,205 kt, an increase of 1.8% on Q3 2012 and a decrease of 1.2% on Q2 2013 extraction volumes. The Division produced 992 kt of saleable chrome ore, a decrease of 1.4% on Q3 2012 and an increase of 2.2% on Q2 2013.

Internal consumption of saleable chrome ore in Q3 2013 increased 1.8% versus the comparable period of 2012 and 1.4% against Q2 2013 reflecting higher ferrochrome production volumes.

Manganese ore extraction decreased 7.3% versus Q3 2012 but increased 5.3% versus Q2 2013. Saleable manganese concentrate production increased 4.5% compared to Q3 2012 and 9.0% against Q2 2013.

Production at Zhairem GOK, which mainly sells manganese concentrates for export, increased 10.4% to 181 kt (34.8% Mn) against Q3 2012 (164 kt; 34.1% Mn) and decreased 2.2% compared to Q2 2013 (185 kt; 34.3% Mn), reflecting market demand. Production at Kazmarganets (38.1% Mn), which supplies manganese concentrate to the Aksu ferroalloys plant for use in silicomanganese production, amounted to 146 kt, a decrease of 2.0% from Q3 2012 (149 kt; 38.6% Mn) and an increase of 27.0% on Q2 2013 (115 kt; 38.7% Mn). The proportion of total manganese concentrate production consumed internally was lower in Q3 2013 (26.0%) than in Q3 2012 (26.2%) and higher than in Q2 2013 (25.7%) due to decrease in silicomanganese production.

Ferroalloys Production

 
                                      Q3              Q3 13/              Q3 13/ 
                                    2013   Q3 2012     Q3 12   Q2 2013     Q2 13 
                                                      change              change 
=========================  =====  ======  ========  ========  ========  ======== 
 Gross Production 
                            000 
 Ferrochrome                 t       350       341      2.6%       342      2.3% 
                            000 
  - High-carbon              t       319       305      4.6%       312      2.2% 
                            000 
  - Medium-carbon            t        11        13   (15.4%)        11      0.0% 
                            000 
  - Low-carbon               t        20        23   (13.0%)        19      5.3% 
                            000 
 Ferrosilicochrome           t        47        46      2.2%        46      2.2% 
                            000 
 Silicomanganese             t        44        40     10.0%        38     15.8% 
                            000 
 Ferrosilicon                t         9        13   (30.8%)        12   (25.0%) 
                            000 
 Total Ferroalloys           t       450       440      2.3%       437      3.0% 
 Internal Consumption 
  of ferroalloys 
                            000 
 High-carbon Ferrochrome     t        27        31   (12.9%)        29    (6.9%) 
                            000 
 Ferrosilicochrome           t        22        26   (15.4%)        20     10.0% 
                            000 
 Other alloys                t         5         2    150.0%         2    150.0% 
                            000 
 Total Ferroalloys           t        54        59    (8.5%)        52      3.8% 
   Percentage                      12.0%     13.4%               11.9% 
 Saleable Production 
                            000 
 Ferrochrome                 t       321       311      3.2%       313      2.6% 
                            000 
  - High-carbon              t       291       275      5.8%       283      2.8% 
                            000 
  - Medium-carbon            t        11        13   (15.4%)        11      0.0% 
                            000 
  - Low-carbon               t        20        23   (13.0%)        19      5.3% 
                            000 
 Ferrosilicochrome           t        25        20     25.0%        26    (3.8%) 
                            000 
 Silicomanganese             t        40        38      5.3%        36     11.1% 
                            000 
 Ferrosilicon                t         8        12   (33.3%)        11   (27.3%) 
                            000 
 Total Ferroalloys           t       396       381      3.9%       386      2.6% 
 

Note : Numbers in the table might not add up due to rounding

In Q3 2013, the Ferroalloys Division produced 321 kt of saleable ferroalloys, an increase of 3.2% on Q3 2012 and 2.6% on Q2 2013. Saleable production increased for high-carbon ferrochrome, ferrosilicochrome and silicomanganese, but decreased for medium- and low-carbon ferrochrome and ferrosilicon reflecting market demand.

IRON ORE DIVISION

 
                                                                 Q3                 Q3 
                                                                13/                13/ 
                                               Q3      Q3        Q3       Q2        Q2 
                                             2013    2012        12     2013        13 
                                                             change             change 
=================================  =====  =======  ======  ========  =======  ======== 
                                    000 
 Ore Extraction ('ROM')              t     10,009   9,883      1.3%   10,874    (8.0%) 
   Grade, % Fe                               32.2    31.5               32.2 
                                    000 
 Primary concentrate production      t      4,214   4,142      1.7%    4,542    (7.2%) 
   Grade, % Fe                               65.5    65.2               65.7 
 
                                    000 
 Saleable concentrate production     t      2,943   2,307     27.6%    2,440     20.6% 
   Percentage of total saleable 
    product                                 72.0%   58.7%              56.2% 
 
                                    000 
 Saleable pellet production          t      1,144   1,620   (29.4%)    1,905   (39.9%) 
   Percentage of total saleable 
    product                                 28.0%   41.3%              43.8% 
                                    000 
 Total Saleable Product              t      4,086   3,927      4.0%    4,345    (6.0%) 
 

Note : Numbers in the table might not add up due to rounding

In Q3 2013, the Iron Ore Division extracted 10,009 kt of iron ore, an increase of 1.3% on Q3 2012 (9,883 kt) and a decrease of 8.0% on Q2 2013 (10,874 kt). The Division produced 4,214 kt of primary concentrate, an increase of 1.7% on Q3 2012 and a decrease of 7.2% on Q2 2013.

Saleable concentrate production (with an iron content of 65.5%) was 2,943 kt, an increase of 27.6% compared to Q3 2012 (2,307 kt) and 20.6%, compared to Q2 2013 (2,440 kt). Pellet production (with an iron content of 62.7%) was 1,144 kt, a decrease of 29.4% on Q3 2012 (1,620 kt) and 39.9% on Q2 2013 (1,905 kt). The change in the ratio of pellet and concentrate production was due to market demand. Total saleable product volumes were 4.0% higher than in Q3 2012 and 6.0% lower than in Q2 2013.

ALUMINA AND ALUMINIUM DIVISION

 
                                                                 Q3 13/                   Q3 13/ 
                                       Q3 2013        Q3 2012     Q3 12        Q2 2013     Q2 13 
                                                                 change                   change 
===========================  =====  ==========  =============  ========  =============  ======== 
                              000 
 Bauxite extraction            t         1,391          1,429    (2.7%)          1,347      3.3% 
   Grade, % Al2O3/SiO2               42.5/11.6      42.6/11.7             42.6(1)/11.7 
                              000 
 Alumina production            t           372            429   (13.3%)            408    (8.8%) 
 Internal consumption         000 
  of alumina                   t           122            121      0.8%            121      0.8% 
   Percentage                            32.8%          28.2%                    29.7% 
                              000 
 Aluminium production          t            63             63      0.0%             63      0.0% 
 Gallium production           kg             -          4,527         -              -         - 
 
 Electricity 
 Electricity generation       GWh          538            514      4.7%            588    (8.5%) 
 Alumina & Aluminium 
  Division own electricity 
  consumption                 GWh          386            384      0.5%            379      1.8% 
   Percentage                            71.7%          74.7%                    64.5% 
 Electricity supply 
  to other Group Divisions    GWh            1             96   (99.0%)              1      0.0% 
   Percentage                             0.2%          18.7%                     0.2% 
 Third-parties electricity 
  supply                      GWh          151             35    331.4%            208   (27.4%) 
   Percentage                            28.1%           6.8%                    35.4% 
 

Note: 1. Restated from 43.2%

In Q3 2013, bauxite extraction was 2.7% lower than in Q3 2012 and 3.3% higher than in Q2 2013. Alumina production decreased 13.3% against Q3 2012 and 8.8% against Q2 2013 reflecting market conditions and a decrease in bauxite quality.

Internal consumption of alumina amounted to 122 kt (an increase of 0.8% on both Q3 2012 and Q2 2013) representing 32.8% of total alumina production and consistent with the aluminium smelter running at its full 250 ktpa capacity.

Primary aluminium production in Q3 2013 was 63 kt in line with Q3 2012 and Q2 2013.

Electricity generation in Q3 2013 increased 4.7% on Q3 2012 and decreased 8.5% on Q2 2013 reflecting seasonal demand. Supply of electricity to other Group Divisions decreased 99.0% against Q3 2012 and was in line with Q2 2013. Electricity supply to third-parties increased by 116 GWh, or 331.4%, against Q3 2012 as the Group aims to maximise third-party sales from the alumina refinery power plant that currently benefits from higher tariffs than the Energy Division. A 27.4% decrease in third-party supply against Q2 2013 was caused by seasonal factors.

OTHER NON-FERROUS DIVISION

Copper and Cobalt Production

 
                                                             Q3 13/              Q3 13/ 
                                        Q3 2013   Q3 2012     Q3 12   Q2 2013     Q2 13 
                                                             change              change 
==============================  =====  ========  ========  ========  ========  ======== 
 Copper 
 ENRC excl. Frontier             000 
  Ore Extraction ('ROM')          t         704       320    120.0%       773    (8.9%) 
   Grade, %Cu                              2.37      2.83   (16.3%)      2.14     10.7% 
 Saleable copper contained(1)     t      13,129     9,967     31.7%    15,397   (14.7%) 
 
   Frontier 
                                 000 
 Ore Extraction ('ROM')           t       1,319         -         -     1,596   (17.4%) 
    Grade, %Cu                             1.27         -         -      1.11     14.4% 
 Saleable copper contained(1)     t       7,311         -         -     7,288      0.3% 
 Total saleable copper 
  contained(1)                   t       20,440     9,967    105.1%    22,685    (9.9%) 
 Cobalt 
                                 000 
 Ore Extraction ('ROM')           t         261       327   (20.2%)       242      7.9% 
   Grade, %Co                              1.47      1.27     15.7%      1.60    (8.1%) 
 Saleable cobalt contained(1)    t        2,775     2,230     24.4%     2,297      20.8 
 

Note:

1. Production numbers for saleable copper and cobalt refer to tonnes of contained metal. Contained metal consists of total units, whether in metal form or metal units contained in concentrate and sludge, net of internal consumption, but excludes copper contained in cobalt concentrate.

Copper ore extraction at Boss Mining and Comide was 120.0% higher than in Q3 2012 and 8.9% lower than in Q2 2013. Ore extraction decreased in the third quarter at Comide due to the availability of ore on stockpiles to meet feed capacity at the DMS plants.

Total copper ore extraction decreased from Q2 2013, with less sulphide ore available at Frontier Mine.

In Q3 2013, copper ore grades at ENRC excluding Frontier were 16.3% lower compared to Q3 2012 due to lower grades from Comide and Boss Mining, but 10.7% higher than in Q2 2013 due to increased grades mined at Luita East and Bangwe at Boss Mining.

Frontier ore grade increased by 14.4% in Q3 2013 as higher metal content sulphide ore became available.

Saleable copper production at ENRC excluding Frontier for the quarter was 31.7% higher than in Q3 2012, but 14.7% lower than in Q2 2013 due to power disruption at Boss Mining and Chambishi metals.

Cobalt contained production in Q3 2013 was 24.4% above Q3 2012 levels, due to less internal consumption between Boss Mining and Chambishi, the latter having been fed mainly from stockpiles.

ENERGY DIVISION

 
                                                          Q3 13/              Q3 13/ 
                                     Q3 2013   Q3 2012     Q3 12   Q2 2013     Q2 13 
                                                          change              change 
===========================  =====  ========  ========  ========  ========  ======== 
 EEC 
 Coal 
                              000 
 Coal extraction total         t       4,304     4,317    (0.3%)     4,424    (2.7%) 
 EEC consumption of           000 
  coal                         t       2,101     1,940      8.3%     2,297    (8.5%) 
   Percentage                          48.8%     44.9%               51.9% 
 Coal supply to other         000 
  Group Divisions              t       1,074     1,122    (4.3%)       958     12.1% 
   Percentage                          25.0%     26.0%               21.7% 
 Third-parties coal           000 
  supply                       t         899     1,086   (17.2%)     1,271   (29.3%) 
   Percentage                          20.9%     25.2%               28.7% 
 
 Shubarkol 
 
 Coal 
                              000 
 Coal extraction total         t       2,407     2,144     12.3%     1,682     43.1% 
 Internal consumption 
  of coal (for special        000 
  coke production)             t         112       109      2.8%       100     12.0% 
   Percentage                           4.7%      5.1%                5.9% 
 Coal supply to other         000 
  Group Divisions              t         250       241      3.7%       240      4.2% 
   Percentage                          10.4%     11.2%               14.3% 
 Third-parties coal           000 
  supply                       t       1,986     1,927      3.1%     1,361     45.9% 
   Percentage                          82.5%     89.9%               80.9% 
 
 Special Coke 
                              000 
 Special coke production       t          50        49      2.0%        44     13.6% 
 Special coke supply          000 
  to other Group Divisions     t          39        30     30.0%        30     30.0% 
   Percentage                          78.0%     61.2%               68.2% 
 Third-parties special        000 
  coke supply                  t          15        11     36.4%        13     15.4% 
   Percentage                          30.0%     22.4%               29.5% 
 
 Electricity (1) 
 Electricity generation       GWh      3,509     3,218      9.0%     3,812    (7.9%) 
 Energy Division own 
  electricity consumption     GWh        250       245      2.0%       270    (7.4%) 
   Percentage                           7.1%      7.6%                7.1% 
 Electricity supply 
  to other Group Divisions    GWh      2,789     2,653      5.1%     2,749      1.5% 
   Percentage                          79.5%     82.4%               72.1% 
 Third-parties electricity 
  supply                      GWh        464       320     45.0%       792   (41.4%) 
   Percentage                          13.2%      9.9%               20.8% 
 

Note: EEC only; electricity consumption and supply numbers may not round precisely due to the purchase of small volumes of electricity from third-parties.

In Q3 2013, EEC extracted 4,304 kt of coal from the Vostochny mine, broadly in line with Q3 2012 and 2.7% decrease on Q2 2013 due to changes in seasonal demand.

Shubarkol coal production in the period was 2,407 kt, a 12.3% increase from Q3 2012 and 43.1% from Q2 2013. Special coke production in Q3 2013 increased by 2.0% from Q3 2012 and 13.6% against the previous quarter.

Electricity generation in the period was 3,509 GWh, an increase of 9.0% on Q3 2012 and a decrease of 7.9% on Q2 2013.

Electricity supplied by the Energy Division to other Group Divisions was 2,789 GWh, an increase of 5.1% on Q3 2012 and 1.5% on previous quarter reflecting increased Group's demand.

Third party electricity sales of 464 GWh increased 45.0% compared to Q3 2012 reflecting added power volumes but decreased 41.4% against Q2 2013 due to changes in seasonal demand.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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