EVRAZ announces financial results for 2010

EVRAZ Group announces its audited financial results for the year ended 31 December 2010.

2010 Highlights:

Financials:

* Consolidated revenue US$13,394 million (+37% vs. 2009)
* Consolidated adjusted EBITDA US$2,350 million (+90%)
* Net profit US$532 million (net loss US$292(1) million in 2009)
* Operating cash flow US$1,662 million
* Total debt US$7,811 million (vs. US$7,923 million as of 31 December 2009) of which short-term debt US$714 million (vs. US$1,992 million as of 31 December 2009)

Steel segment:

* Crude steel production 16.3 million tonnes (+7%)
* Total external steel sales volumes 15.5 million tonnes (+9%)
* Steel segment revenue US$12,123 million (+35%)

Mining segment:

* Iron ore production 19.8 million tonnes (+6%)
* Raw coking coal production 7.5 million tonnes (-27%)
* Steam coal production 3.8 million tonnes (-8%)
* Mining segment revenue US$2,507 million (+72%)

Vanadium segment:

* Primary vanadium (slag) production 20,969 tonnes (+8%)
* External vanadium product sales volumes 19,776 tonnes (+9%)
* Vanadium segment revenue US$566 million (+56%)

Corporate developments:

* Successful tender for the licences to develop the Mezhegey coking coal deposit in March 2010 and the Mezhegey Eastern coking coal deposit in October 2010
* Launch of major rail mill modernisation projects
* Commencement of implementation of pulverised coal injection (PCI) technology at two Russian steel mills
* Approval for construction of Yuzhny Rolling Mill in the Rostov Region of Southern Russia and the Kostanay Rolling Mill in Kazakhstan, each with 450,000 tonnes of construction steel capacity
* Acquisition in December 2010 of INPROM, a Russian metal service company, to strengthen EVRAZ’s distribution network
* Conversion in January 2011 of old order mining rights into new order mining rights for Mapochs Mine in South Africa

Financial management:

* Approximately US$ 3.6 billion of 2010-2011 maturities refinanced in 2010 through:
o RUB30 billion (approx. US$1 billion) total rouble bond issues in March and November
o US$950 million 5-year Gazprombank loan in May
o US$404 million 4-year loan from Nordea Bank in July
o CAD300 million (approx. US$285 million) 4-year committed revolving credit facility secured by Evraz Inc. NA Canada in September
o US$950 million 5-year pre-export finance facility in November
* AGM held on 17 May 2010 approved the decision not to pay any dividends in respect of 2009

CAPEX:

* CAPEX in 2010 amounted to US$832 million compared with US$441 million in 2009
* CAPEX for FY2011 is expected to total approximately US$1.2 billion

(1) Net income numbers do not correspond to the 2009 financial statements due to the changes in the accounting policies (Note 2 to Financial Statements)
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