Metinvest iron ore concentrate output rises 6% in 7M20

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer,
amounted to 3.24 mmt (104.5 kt per day) in July, according to Concorde
Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 6.4%
m/m gain on a daily average basis. The holding’s pellet output was 591 kt in
July, a 19.2% m/m rise on a daily average basis.

Concentrate production at Inhulets Iron Ore jumped
12.1% m/m in July to a daily rate of 36.1 kt. Production at Northern Iron Ore
gained 7.2% m/m to 37.6 kt per day. Production at Central Iron Ore inched up
0.1% m/m to 13.5 kt per day, whereas output at Southern Iron Ore slid 0.9% m/m
to 37.5 kt per day.

In 7M20, Metinvest’s attributable output of iron ore
concentrate rose 5.7% yoy to 20.59 mmt, or 96.7 kt per day.

Dmytro Khoroshun: Metinvest’s
July concentrate daily production rate is the highest since at least January
2017, as the holding is making the most of the period of strong iron ore prices
at the global markets, which is positive.

We are raising our expectations for Metinvest’s 2020
iron ore concentrate production to 34.3-35.1 mmt (93.7-96 kt per day), or 3-5%
more yoy (including the attributable share of Southern Iron Ore volume).

At a March conference call with investors Metinvest’s
CEO said the holding expects its total iron ore concentrate production
(excluding Southern Iron Ore) will remain at the 2019 level.

We maintain our neutral view on METINV bonds.