EVRAZ HIGHVELD STEEL & VANADIUM LTD - Second Quarter ending 30 June 2014 Operational Results

Second Quarter ending 30 June 2014 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”)

Second Quarter ending 30 June 2014 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

                                                                    2Q 2014/                     2Q 2014/
                      Unit of                                       1Q 2014,                     2Q 2013,
                                  Notes     2Q 2014      1Q 2014                  2Q 2013
                     measure                                              %                            %
                                                                     change                       change

 Steel segment
 Hot metal               Tons          1     191,418      152,246          26      158,435            21
 Continuously cast
 blocks                  Tons                169,574      149,623           13     159,163              7
 Sections                Tons                 52,946       50,230            5      47,208             12
 Plates                  Tons          2      42,712       46,868          (9)      48,686           (12)
 Coil                    Tons          2      35,450       43,484         (18)      38,730            (8)
 Vanadium slag           Kg V          3   1,895,959    1,435,678          32    1,910,621            (1)
 Fines ore               Tons          4     195,495      139,469          40      188,463              4
 Vanadium
 segment
 Ferrovanadium
 (FeV)                   Kg V              1,142,005    1,347,752         (15)   1,296,676           (12)


WEIGHTED AVERAGE SELLING PRICES

                                                                    2Q 2014/                     2Q 2014/
                       Unit of                                      1Q 2014,                     2Q 2013,
                                  Notes     2Q 2014      1Q 2014                  2Q 2013
                      measure                                             %                            %
                                                                     change                       change

 Steel segment
 Total Steel              R/ton                7,170        7,004           2        7,135             0
 Vanadium slag          R/Kg V                    84           84           0           95           (12)
 Fines ore               R/ton         4         260          222          17          306           (15)
 Vanadium
 segment
 Ferrovanadium          R/Kg V                   269          269           0          258             4

 Average
 exchange rate              R/$                10.54        10.86          (3)        9.49            11

Notes:
( All prices quoted are delivered prices).
The below comments explain material variances between Q2 2014 and Q1 2014:
General:
1) Hot metal production increased due to stability through-out the Ironmaking process mainly as a
result of operational improvements.
2) Flat product production volumes were lower in Q2 as a result of operational challenges and weaker
market conditions.
3) Vanadium Slag production increased as a result of improved vanadium yield and plant availability.
4) Fines ore production and prices increased as a result of operational improvements and favourable
pricing due to the improved Vanadium prices in Q2.

15 July 2014


Sponsor:
J.P. Morgan Equities South Africa (Pty) Ltd

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