EVRAZ is increasing its 2Q 2011 EBITDA guidance

EVRAZ announces today that it is increasing its EBITDA guidance for 2Q 2011 to US$875-950 million from a previously announced guidance range of US$750-825 million.

The increase in guidance reflects higher than expected steel prices, a later than expected increase in the cost of iron ore and scrap and the postponement of certain repairs until 3Q 2011.

According to the management accounts, EVRAZ’s total debt as of 30 June 2011 was approximately US$7.4 billion and cash and cash equivalents amounted to approximately US$1.1 billion. Consequently, net debt amounted to approximately US$6.3 billion.

As a result, the net debt/LTM EBITDA ratio as of 30 June 2011 is expected to be in the range of 2.18-2.25x (as 2H 2010 EBITDA was US$1,196 million), which is below the threshold imposed by debt covenants and gives the Company greater flexibility in the execution of its strategic plans.

EVRAZ is also announcing today that it is considering listing alternatives to its existing GDR programme. In order to support this process, 1H 2011 financial results are being audited and are expected to be published on or around 12 October 2011.