Metinvest iron ore concentrate output rises 5.8% in 10M19

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer,
amounted to 2.78 mmt (89.8 kt per day) in October, according to Concorde
Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 1.1%
m/m gain on a daily average basis. The holding’s pellet output was 585 kt in
October, a 10.3% m/m drop on a daily average basis.

Concentrate production at Inhulets Iron Ore lost 10.4%
m/m in October to a daily rate of 27.4 kt. Production at Northern Iron Ore rose
12.2% m/m to 34.5 kt per day. Production at Central Iron Ore slid 0.7% m/m to
12.9 kt per day, whereas output at Southern Iron Ore increased 3.3% m/m to 32.6
kt per day.

In 10M19, Metinvest’s attributable output of iron ore
concentrate rose 5.8% yoy to 27.83 mmt, or 91.5 kt per day.

Dmytro Khoroshun: We are revising our estimate for Metinvest’s 2019 attributable iron
ore concentrate output to 33.1-33.5 mmt (91-92 kt per day), or 5-6% more yoy.
The management guidance for Metinvest’s subsidiaries (excluding Southern Iron
Ore) is for a 4-5% yoy increase, or by 1.2-1.3 mmt.