Russia’s Magnitogorsk Iron and Steel Works (MMK) plans to accumulate about $500 million in cash after its debt diminishes to $230 million in 2017 from the current $520 million, Andrei Yeryomin, the company’s director for economy, said.
“This year the bulk of our free cash flow was allocated for debt redemption. After the debt has fallen, we plan to allocate the funds on creation of a cash buffer. The target level of accumulation is $500 million”, Yeryomin said.
The company plans to redeem $136 million in October–December, and it has already allocated the sum on deposits. It is to redeem $287 million in 2017, $73 million in 2018, and $24 million in 2019.
The company’s further goal is a dividend policy that envisages payment of at least 30% of its free cash flow in dividends, he added. (Prime/Ukrainian metal)