IMH operational results for 9m 2020

Industrial Metallurgical Holding (IMH), one of the world’s leading supplier of merchant pig iron and the biggest merchant coke producer in Russia, announces its operational results for 9M 2020.

Key operational results:

Sales of the main commercial products in physical terms: 

The total pig iron production and sales rose by 8% compared to the same period of 2019 due to increased production efficiency after completion of maintenance at the blast furnace No. 3 in March and April 2020. From May to August the Company achieved new monthly production records four times in a row operating with two blast furnaces. Thus, the Company managed to achieve an absolute production record operating with two blast furnaces during the first three quarters of 2020 despite the decrease in production in the 2Q 2020.

The share of pig iron supplies to the domestic market in the total pig iron sales amounted to 65%, a 42 p.p. increase to compare with the level of 9M 2019. This was mainly a result of stable demand from Tula-Steel, a newly commissioned steel mill located nearby Tulachermet plant.

Total coke production for 9M 2020 increased by 3%, while sales slightly reduced. Decrease in sales of coke was a result of decline in deliveries in the 1H 2020, when demand from the European countries moved down on the back of the COVID-19 protection measures which were introduced to prevent the spread of virus and temporary shutdown of coke-consuming enterprises. At the same time, a positive factor for coke sales was growing intragroup consumption driven by the increase in pig iron production.

Coal production during 9M 2020 increased by 32% compared to the same period of 2019 due to production growth at Tikhova mine.

The coal concentrate output slightly reduced because of increase in ash content in the coal processed to compare with the level of 2019.

During the three quarters of 2020, all the Group’s enterprises operated normally, in compliance with all the norms and recommendations of the relevant ministries and departments regarding prevention of the spread of infectious diseases.

The company continues to implement its production optimization program. For 9M 2020, 295 new projects were approved for implementation which is 53 projects more to compare with the same period of 2019. The expected economic effect from implementation of the accepted proposals will amount to RUB 208 million. The total accumulated earnings attributed to the program are now around RUB 2,576 million.