Wrap Text
Third Quarter ending 30 September 2013 Operational Results
EVRAZ Highveld Steel and Vanadium Limited
Registration number: 1960/001900/06
(Incorporated in the Republic of South Africa)
Share code: EHS
ISIN ZAE000146171
(“the Company”)
Third Quarter ending 30 September 2013 Operational Results
Following the practice of the holding company, EVRAZ plc, to release quarterly operational
information, EVRAZ Highveld Steel and Vanadium Limited hereby releases its results as follows:
PRODUCTION VOLUMES
3Q 2013/ 3Q 2013/
Unit of 2Q 2013, 3Q 2012,
Notes 3Q 2013 2Q 2013 3Q 2012
measure % %
change change
Steel segment
Hot metal Tons 145,123 158,435 (8) 84,437 72
Continuously cast
blocks Tons 144,147 159,163 (9) 77,506 86
Sections Tons 55,233 47,208 17 30,886 79
Plates Tons 41,779 48,686 (14) 27,464 52
Coil Tons 29,785 38,730 (23) 7,367 304
Vanadium slag Kg V 1,473,092 1,910,621 (23) 910,645 62
Fines ore Tons 2 153,650 188,463 (18) 152,621 1
Vanadium
segment
Ferrovanadium Kg V 1,244,505 1,296,676 (4) 1,102,905 13
Modified
Vanadium Oxide
(MVO) Kg V 3 25,938 284,345 (91) 194,184 (87)
Nitrovan Kg V 3 37,449 134,509 (72) 188,358 (80)
WEIGHTED AVERAGE SELLING PRICES
3Q 2013/ 3Q 2013/
Unit of 2Q 2013, 3Q 2012,
Notes 3Q 2013 2Q 2013 3Q 2012
measure % %
change change
Steel segment
Total Steel $/ton 4 708 752 (6) 754 (6)
Vanadium slag $/Kg V 5 8 10 (20) 2 350
Fines ore $/ton 5 23 32 (28) 18 29
Vanadium
segment
Ferrovanadium $/Kg V 5 25 27 (6) 24 6
Modified
Vanadium Oxide $/Kg V 5 19 20 (6) 18 4
Nitrovan $/Kg V 5 24 29 (16) 22 9
Average
exchange rate R/$ 9.99 9.49 5 8.26 21
Notes:
1) All prices quoted are delivered prices.
The below comments explain material variances between Q3 2013 and Q2 2013:
General: During July and August iron making furnace electricity input was constrained to offset the
impact of peak electricity tariffs (25 hours per week). This resulted in lower liquid iron production,
which in turn affected steel and vanadium slag production. During this period rolling of structural and
flat products continued without interruption, through reducing the inventory of cast steel. During
August the slab caster was out of operation for an extended period to effect major maintenance. The
outage overran the planned schedule resulting in below plan production of liquid iron, cast slab, rolled
flat products and vanadium slag during September.
2) Q3 ore production at the mine was impacted by equipment availability problems and the
introduction of quality improvements.
3) Reduced MVO/Nitrovan output due to lower slag availability, a result of the need to meet the
company's contractual slag supply volume to Hochvanadium.
4) Reduced local market demand and an increase towards export markets resulted in a lower
weighted average steel price in Q3.
5) The average weighted LMB pricing ($/kg V) reduced by 13% from Q2 to Q3.
11 October 2013
Sponsor:
J.P. Morgan Equities South Africa (Pty) Ltd
Date: 11/10/2013 09:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.