Operating results of IMH for 1H 2021

Industrial and Metallurgical Holding (IMH), one of the world's leading suppliers of merchant pig iron and the largest producer of merchant coke in Russia, announces its operating results for the first half of 2021.

Key operational and sales results summary:

In the first half of 2021, Tulachermet plant set a new record for the production of pig iron using two blast furnaces. The total output of merchant pig iron exceeded 1.3 million tons that is 11% more to compare with the level achieved in the same period of 2020. The outstanding results were achieved due to the maximum utilization ratio of blast furnaces combined with optimal technological mode. Sales of pig iron increased in the same proportion to production, while the share of export sales amounted to 47% of the total volume, which is 15 percentage points up to compare with the level of the same period in 2020.

Coke output was stable compared to the level of the first half of 2020. Sales of coke slightly increased due to the higher intra-group demand which was a result of pig iron production growth.

Coal production in the first half of 2021 increased by 13% due to the highly effective operations of the Tikhova mine and the Uchastok Koksoviy open pit. Coal production volume in the second quarter of 2021 was 30% up to compare with the first quarter results.

Coal concentrate and iron ore concentrate output volumes have been fluctuating insignificantly compared with the level of the previous periods.

IMH continues to implement projects related to improving production efficiency with the focus on digitalization of processes. Up-to-date ERP systems have already been implemented at four IMH’s plants, such as the washing plant TSOF Berezovskaya, Uchastok Koksoviy, KVOiT and PMH-VTORMET. In addition, the project of automatic dispatching system for the equipment has been fully completed at Uchastok Koksoviy. The new system will allow to decrease the costs of plant for up to RUB 100 million per year.

All production facilities of the Group operate normally in compliance with the standards and recommendations of relevant ministries and departments regarding the prevention of the spread of infectious diseases.