Mechel has addressed its main bank-creditors (VTB and Gazprombank) asking them to prolong the postponement to pay debts until the debt is restructured. As of late 2019, the volume of loan debt exceeded 370 billion rubles. Gazprombank has agreed to postpone the payment for a month, while VTB has not decided yet. In 2017, Mechel…
Because of high debts and lack of funds for development Mechel has lost licenses to develop Pionerskoye and Sivaglinskoye iron ore deposits in Yakutia with combined reserves of over 160 million tons. In December 2019, the Russian Subsoil Use Service stopped Mechel’s right to use the deposits ahead of schedule. The company has not fulfilled…
In 2019, Mechel increased net profit by 25% YoY, to 5.33 billion rubles. In 2016, profit was 15 billion rubles, while in 2014 the company saw a loss of 3 billion rubles. Revenue dropped by 9%, to 112.99 billion rubles. Sales profit decreased from 13 billion rubles to 3 billion rubles. (Ukrainian metal)
Mechel is mulling the sale of Elga coal complex as a part of planned debt restructure. The company has been negotiating with a potential buyer since January. So far, no legally binding agreements have been concluded. In late January, it was reported that Yota wanted to buy the Elga coal deposit from Mechel and Gazprombank.…
The net profit attributable to shareholders of the Russian metals and mining group Mechel dropped by 81%, to 2.409 billion rubles in 2019, as calculated under International Financial Reporting Standards (IFRS). Consolidated revenue decreased by 5%, to 296.567 billion rubles, while earnings before interest, taxes, depreciation, and amortization (EBITDA) went down by 29%, to 53.428…
In 2019, following a large-scale reconstruction in the blast furnace and oxygen-converter shops, Chelyabinsk Iron and Steel Works decreased pig iron output by 8% and steel by 7% YoY. Bars sales dropped by 8%, while shapes grew by 2% and rails – by 15%. Mechel rails sales, without deliveries to RZD and for exports, increased…
Mechel has concluded a loan agreement with its company Korshunovsky Mining and Processing Works for 3.2 billion rubles. The deal amounts to 7.17% of Korshunovsky GOK assets value. The agreement was concluded on March 11. Mechel has to return the funds with interest until May 31, 2023. The interest rate has not been disclosed. In…
Russian metals and mining group Mechel has decided not to exercise its preemptive right to buy a 49% stake in the Elga coal deposit from Gazprombank and may also sell its 51% stake in the project. Gazprombank said in August 2019 that it had received an offer of purchase of a 49% stake in the…
