MMK’s Belon posts $6 million net loss under IFRS in Q3

Friday, 10 December 2010 15:44:43 (GMT+3)   |  
       

The Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced that in the third quarter of the current year under International Financial Reporting Standards (IFRS) its coal mining subsidiary Belon registered a $6 million net loss compared to a $22 million profit in the second quarter, while its EBITDA equaled $38 million, down from $70 million in the previous quarter.

Accordingly, in Q3 Belon's concentrate production decreased by 32 percent quarter on quarter to about 1.1 million mt, because of intricate geological conditions and technological arrangements to meet safety requirements with simultaneous change of walls.

In addition, in Q3 2010, MMK's consumption of coal concentrate from Belon declined by 14 percent quarter on quarter from 627,000 mt to 543,000 mt. Recovery of coal production and supplies volumes from Belon to MMK is expected in Q4 2010.   

Jan-Sept 2010

Jan-Sept 2009

Change

Q3 2010

Q2 2010

Change

Concentrate production (mt):

4,345,000

3,684,000

17.9%

1,094,000

1,608,000

-32.0%

coking coal concentrate (mt)

2,118,000

1,991,000

6.4%

525,000

747,000

-29.7%

steam coal concentrate (mt)

2,127,000

1,693,000

25.6%

569,000

853,000

-33.3%

Sales of coal segment ($, million)

396

-

-

106

140

-24.3%

EBITDA of coal segment ($, million)

165

-

-

38

70

-45.7%

EBITDA margin

42%

-

-

36%

50%

-

Profit for the period of coal segment ($, million)

31

-

-

-6

22

-


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