Metals and Mining

The May 16 AGM of Dniprometiz [DMPO UZ, N/R] provided no details on the company’s development plans. The management indicated that such plans would be discussed at a later press conference.

On May 13, Metinvest Holding reported that during 4M08, one of its trading subsidiaries, Metinvest-Ukraine LLC (responsible for Metinvest Group sales in Ukraine and CIS countries excluding Russia), demonstrated strong results. Namely, sales of long products in CIS countries (excluding Russia) increased 45% YoY to 55 thsd mt, whereas long products sales in Ukraine jumped by similar 45% YoY to 380 thsd mt. The leading growth market was Belorussia, which consumed 14 thsd mt, twice as much as in 4M07. Metinvest-Ukraine director general, Oleg Olshanskiy, noted that the company’s growth rate in Ukraine outpaced the average market growth rate by more than two times.

At a May 14 EGM, shareholders of Dnipropetrovsk Metallurgical Plant named after Komintern, or Kominmet, [DMZK UZ, N/R] approved a share capital increase plan. A total of 48.3 mln new shares will be offered at the face value of USD 0.0495 per share, fetching USD 2.4 mln. Shareholders will be able to exercise their exclusive purchase rights (on a pro-rata basis) from July 14-18 (ex-rights day July 14, last trading day July 11); during the second stage, which is to last just one day, July 21, anyone would be able to purchase leftover shares.

On May 01, Donetsk Metal Rolling Plant [DMPZ UZ, HOLD] has launched its main Mill 300 after 35 days repairs. According to Metal Courier, in April the company halted production completely (as we reported was expected earlier). In May, 12 thsd metric tons is to be produced.

Donetsk Metal Rolling Plant [DMPZ UZ, HOLD] released the 2007 financials.

Dniprovsky Iron & Steel Works named after Dzerzhinsky, or simply Dzerzhynka [DMKD UZ, SELL], is conducting a share capital increase. Number of shares outstanding will increase 2.44 times, to 6.777 bln. The ex-rights date was May 12.

Zaporizhstal [ZPST UZ, HOLD] will attract USD 250 mln of syndicated credit (three years, LIBOR+2.5%). According to Cbonds.info, which cited EuroWeek, Citigroup is organizing the deal.

Dniprospetsstal [DNSS UZ, BUY] smelted 185.1 thsd metric tons of steel (+0.6% YoY according to our estimates) and produced 119.1 thsd metric tons (-2.3%) of rolled products. In April 2008, steel and rolled products output amounted to 47.1 and 31.4 metric tons, correspondingly.

Joint Venture Metalen LLC, which together with OJSC Enakievo ISW [ENMZ UZ, BUY] comprise the so-called Enakievo ISW Group, has released its 1Q08 financials.

Dnipropetrovsk Iron & Steel Works named after Petrovsky [DMZP UZ, HOLD], or Petrovka, released its 2007 finances.