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EVRAZ HIGHVELD STEEL & VANADIUM LTD - Third Quarter ending 30 September 2013 Operational Results

Release Date: 11/10/2013 09:55
Code(s): EHS     PDF:  
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

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