May 13, 2016 - 7:00 AM EDT
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Mechel Reports the 2015 Financial Results

Revenue amounted to 253,141 million rubles
Consolidated EBITDA(a)* amounted to 45,730 million rubles
Net loss attributable to shareholders of Mechel PAO amounted to 115,163 million rubles

MOSCOW, May 13, 2016 (GLOBE NEWSWIRE) -- Mechel PAO (MICEX:MTLR) (NYSE:MTL), a leading Russian mining and steel group, announces financial results for the full year 2015.

In accordance with legislation of the Russian Federation, starting from financial results for the year 2015 the Company will be reporting its financial statements in accordance with International Financial Reporting Standards (IFRS). Presentation currency will be Russian ruble.

Mechel PAO’s Chief Executive Officer Oleg Korzhov commented on the 2015 results:

“2015 was a complicated year for our company, but nevertheless a vital one. Our key event was reaching agreement in principle with the majority of our lenders on restructuring our debt. Even though not all official documents were signed in 2015, our main efforts and talks on restructuring conditions were made in that period. As of now, the company has announced signing deals with major lender banks as well as reaching an agreement with Gazprombank with the bank acquiring a share in the Elga project. So we may consider that the restructuring’s pivot point has been passed.

In 2015, our revenue went up by 4% to reach 253,141 million rubles, with EBITDA up by 54% to reach 45,730 million rubles, as the EBITDA margin reached 18% and adjusted operating income up by 140% year-on-year. The 115,163 million ruble net loss was largely due to negative currency rate trends.

Mechel’s operational and financial results improved to a large extent due to the fact that our key projects whose implementation had caused our company’s debt growth, are reaching target capacity utilization levels and increase returns on invested capital.

At Elga Coal Complex, four million tonnes of coal were mined last year, with coking coal accounting for two-thirds of that amount. Five million tonnes are planned to be mined in 2016. Starting in 2016, we began supplying rails produced by Chelyabinsk Metallurgical Plant’s universal rolling mill to Russian Railways, which will enable us to fully utilize the mill’s potential for producing high-margin products. Rail supplies to Russian Railways may amount to from 150,000 to 250,000 tonnes this year, with the mill’s overall output totaling over 500,000 tonnes of products.

The strengthening of steelmaking commodity and steel markets which we currently observe enable us to confidently conduct our operations and sales with a view to the company’s further development.”

*Please find the calculation of the EBITDA(a) and other measures used here and hereafter in Attachment A

Consolidated Results For The Full Year 2015

Mln rublesFY 2015FY 2014%
Revenue
from external customers
 253,141  243,992  4%
Adjusted operating income 29,203  12,147  140%
EBITDA (a)  45,730  29,759  54%
EBITDA (a), margin 18% 12% 
Net loss
attributable to shareholders of Mechel PAO
 (115,163) (132,704) -13%
Adjusted net (loss) / income  (40,165) (7,609) 428%
Net debt 506,891  407,240  25%
Trade working capital (9,293) (12,603) -26%
 

Mining Segment

Mechel Mining Management OOO’s Chief Executive Officer Pavel Shtark noted:

“In 2015 the trend in steelmaking commodity markets was mostly negative. China’s demand for coal imports took a constant downturn as facilities producing semi-finished steel goods faced massive closure. Imports were pushed out by local Chinese producers with the help of measures consistently taken by Chinese authorities. With this in mind, major Australian producers persisted in the policy of tough price competition with other global suppliers for the share in the market. Spot prices for coking coal plummeted, widening the gap with contract prices. As a result, the price for coking coal concentrate on the global market fell by more than 30% from $117 FOB in 1Q2015 to $81 FOB in 1Q2016 — further than it has been for many years.

In these conditions, our mining segment faced cuts in metallurgical coal sales. The chief decrease was in export sales, especially to China. At the same time the company increased coal supplies for internal use, for example, Elga coals replaced those coals that the Group’s enterprises used to acquire from third parties. Meanwhile, the growth of ruble denominated prices for coal offered significant compensation for the decrease in sales due to ruble devaluation. As a result, the segment’s revenue from sales to third parties demonstrated positive dynamics, while inter-segment revenue went up by a third. With operational costs at a stable level, the segment demonstrated a significant growth of its operational income and EBITDA, while its EBITDA margin reached 25%.

In the first quarter 2016, we saw some positive trends on the steel raw materials markets which led to contract prices reaching $84 per tonne, with spot prices rising higher than contract prices in April-May — for the first time since mid-2013. Considering low production costs at our mining assets and the decrease in transport costs due to ruble devaluation, the company’s products remain highly competitive both domestically and internationally, which will enable us to further demonstrate stable financial results.”

Mln rublesFY 2015FY 2014%
Revenue
from external customers
 80,632  79,509  1%
Revenue
intersegment
 28,091  21,049  33%
EBITDA(a)  26,831  13,359  101%
EBITDA (a), margin (4) 25% 13% 
 

Steel Segment

Mechel-Steel Management Company OOO’s Chief Executive Officer Andrey Ponomarev noted:

“Throughout practically all of last year, we had to cope with weakened demand for steel products in the construction industry which is crucial for the segment’s sales structure. Russian long steel market in 2015 went down by 14% due to the decrease in construction volumes as the overall economic situation worsened, with effective demand going down and the state and business investment activity slowing down. Despite a significant decrease in visible consumption of construction-grade long steel in Russia, we maintained the volume of domestic sales at the level of the previous year, increasing our share at this strategically important market. We also optimized our sales portfolio for other types of long steel products, minimizing manufacture of low value-added products. We even managed to increase sales of some types of products, such as flat steel. Nevertheless, overall sales decreased tonnage-wise year-on-year. At the same time, ruble devaluation had a positive impact on domestic prices, which was the major cause of the growth of the segment’s revenue. Due to our efforts on optimizing our product range by increasing the share of high value-added products and cost control, the segment demonstrated a growth of operating income and EBITDA.

The increase of high value-added products’ share in our sales structure was largely thanks to the capacity utilization growth of the universal rolling mill. In 2015 the mill produced 175,000 tonnes and is due to more than double that volume this year. We consider Russian beam and rail markets to be among the most promising markets for the steel segment due to limited supply from domestic producers. Thus the mill’s contribution to the segment’s financial results will be more and more tangible each year.”

Mln rublesFY 2015FY 2014%
Revenue
from external customers
 146,032  138,660  5%
Revenue
intersegment
 6,972  8,207  -15%
EBITDA(a)  17,127  14,906  15%
EBITDA(a), margin 11% 10% 
 

Power Segment        

Mechel-Energo OOO’s Chief Executive Officer Pyotr Pashnin noted:

“Last year, our segment demonstrated, as usual, stable operational profit. Electricity generation and sales topped those of the previous year, while heat production and sales saw a moderate decrease primarily due to climatic factors. As a result, we demonstrated a small increase in revenue from sales to third parties, while our EBITDA(a) went up by nearly half.”

Mln. rublesFY 2015FY 2014%
Revenue
from external customers
 26,477  25,823  3%
Revenue
intersegment
 14,990  13,731  9%
EBITDA(a)  2,090  1,403  49%
EBITDA(a), margin (4) 5% 3% 
 

The management of Mechel will host a conference call today at 18:00 p.m. Moscow time (4:00 p.m. London time, 11 a.m. New York time) to review Mechel’s financial results and comment on current operations. The call may be accessed via the Internet at http://www.mechel.com, under the Investor Relations section.

Mechel is one of the leading Russian companies. Its business includes three segments: mining, steel and power. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and electric power. Mechel products are marketed domestically and internationally.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.

Attachments to the FY 2015 Earnings Press Release

Attachment A

Non-IFRS financial measures. This press release includes financial information prepared in accordance with International Financial Reporting Standards, or IFRS, as well as other financial measures referred to as non-IFRS. The non-IFRS financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS.

Adjusted EBITDA (EBITDA (a)) represents net income or loss before Depreciation, depletion and amortization, Foreign exchange loss (gain), Finance costs, Finance income, Net result on the disposal of non-current assets, Impairment of goodwill and other non-current assets, Allowance for doubtful accounts,  Write-offs of inventories to net realisable value, (Profit) loss after tax for the year from discontinued operations, net, Net result on the disposal of subsidiaries, Amount attributable to non-controlling interests, Income taxes, Loss (profit) from pension obligations, Fines and penalties, Gain from accounts payable write-off and Other one-off items. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of our net revenues. Our adjusted EBITDA may not be similar to EBITDA measures of other companies. Adjusted EBITDA is not a measurement under IFRS and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of operations. We believe that our adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions and other investments and our ability to incur and service debt. While interest, depreciation and amortization are considered operating costs under IFRS, these expenses primarily represent the non-cash current period allocation of costs associated with non-current assets acquired or constructed in prior periods. Our adjusted EBITDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the metals and mining industry.

Adjusted net income / (loss) represents net income / (loss) before Impairment of goodwill and other non-current assets, Allowance for amounts due from related parties, (Profit) loss after tax for the year from discontinued operations, net, Net result on the disposal of subsidiaries, Effect on net profit (loss) attributable to non-controlling interests, Foreign exchange loss (gain), Loss (profit) from pension obligations, Fines and penalties, Gain from accounts payable write-off and Other one-off items. Our adjusted net income / (loss) may not be similar to adjusted net income / (loss) measures of other companies. Adjusted net income / (loss) is not a measurement under IFRS and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of operations. We believe that our adjusted net income / (loss) provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations. While impairment of goodwill and other non-current assets and allowance for amounts due from related parties are considered operating costs under IFRS, these expenses represent the non-cash current period allocation of costs associated with assets acquired or constructed in prior periods. Our adjusted net income / (loss) calculation is used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the metals and mining industry.

Our calculations of Net debt and trade working capital are presented below:

Mln RUB  31.12.2015  31.12.2014  01.01.2014 
Short-term borrowings and current portion of long-term debt  444,199   371,903   265,026 
Interest payable  27,269   13,093   2,052 
Fines and penalties on overdue amounts  20,206   1,522   -  
Long-term debt 4,308  9,346  25,251 
Derivative instruments -  -  823 
less Cash and cash equivalents (3,079) (3,983) (8,979)
Net debt, excluding finance lease liabilities 492,903  391,881  284,173 
Finance lease liabilities, current portion 13,507  15,213  10,809 
Finance lease liabilities, non-current portion 481  146  2,973 
Net debt 506,891  407,240  297,955 
    
    
Mln RUB  31.12.2015  31.12.2014  01.01.2014 
Trade and other receivables 15,981  19,808  22,477 
Due from related parties, net of allowance 96  138  196 
Inventories 35,189  36,337  46,629 
Other current assets 8,127  8,750  7,225 
Trade current assets 59,393  65,033  76,527 
Trade and other payables 54,524  61,493  51,973 
Advances received 3,492  4,286  4,290 
Provisions and other current liabilities 2,558  2,166  1,560 
Taxes and social charges payable 8,034  9,647  7,440 
Due to related parties 78  44  1,024 
Trade current liabilities 68,686  77,636  66,287 
    
Trade working capital (9,293) (12,603) 10,240 
 

 Calculations of Net debt could differ from indicators calculated in accordance with loan agreements upon dependence on definitions in such agreements.

Adjusted EBITDA can be reconciled to our consolidated statements of operations as follows:

 Consolidated Results Mining Segment ** Steel Segment** Power Segment**
Mln RUB12m 201512m 2014 12m 201512m 2014 12m 201512m 2014 12m 201512m 2014
Net loss attributable to shareholders of Mechel PAO (115,163) (132,704)  (71,120) (86,787)  (41,438) (45,356)  (2,286) (651)
Add:           
Depreciation, depletion and amortization 14,085  14,429   9,106  8,747   4,650  5,391   329  291 
Foreign exchange loss (gain), net 71,106  103,176   49,872  70,553   21,122  32,910   111  (287)
Finance costs 60,452  28,110   33,880  15,045   25,645  12,966   2,173  1,208 
Finance income (183) (107)  (1,030) (777)  (344) (390)  (55) (48)
Net result on the disposal of non-current assets, impairment of goodwill and other non-current assets, allowance for doubtful accounts and write-offs of inventories to net realisable value 4,772  12,710   900  1,357   2,122  10,658   1,751  696 
(Profit) loss after tax for the year from discontinued operations, net (932) 11,702   (764) 13,141   (168) (1,468)  -  29 
Net result on the disposal of subsidiaries 19  89   -  -   19  89   -  - 
Amount attributable to non-controlling interests 535  (1,263)  (444) (971)  812  (408)  166  114 
Income taxes 8,322  (8,822)  5,632  (8,435)  2,794  (374)  (103) (13)
Loss (profit) from pension obligations 50  (6)  125  (5)  (81) (7)  6  7 
Fines and penalties 1,598  915   707  755   890  189   -  (29)
Gain from accounts payable write-off (224) (38)  (33) (2)  (190) (35)  (1) - 
Other one-off items 1,293  1,568   -  741   1,293  742   -  86 
Adjusted EBITDA 45,730  29,759   26,831  13,359   17,127  14,906   2,090  1,403 
Adjusted EBITDA, margin 18% 12%  25% 13%  11% 10%  5% 3%
            
            
Mln RUB12m 201512m 2014 12m 201512m 2014 12m 201512m 2014 12m 201512m 2014
Net loss attributable to shareholders of Mechel PAO  (115,163) (132,704)  (71,120) (86,787)  (41,438) (45,356)  (2,286) (651)
Add:           
Impairment of goodwill and other non-current assets 1,460  7,996   -  (19)  16  8,015   1,444  - 
Allowance for amounts due from related parties 43  126   43  126   -  -   -  - 
(Profit) loss after tax for the year from discontinued operations, net (932) 11,702   (764) 13,141   (168) (1,468)  -  29 
Net result on the disposal of subsidiaries 19  89   -  -   19  89   -  - 
Effect on profit (loss) attributable to non-controlling interests 585  (433)  -  -   560  (433)  25  - 
Foreign exchange loss (gain), net 71,106  103,176   49,872  70,553   21,122  32,910   111  (287)
Loss (profit) from pension obligations 50  (6)  125  (5)  (81) (7)  6  7 
Fines and penalties 1,598  915   707  755   890  189   -  (29)
Gain from accounts payable write-off (224) (38)  (33) (2)  (190) (35)  (1) - 
Other one-off items 1,293  1,568   -  741   1,293  742   -  85 
Adjusted net (loss) income, net of income tax  (40,165) (7,609)  (21,170) (1,498)  (17,978) (5,355)  (701) (846)
            
Operating profit (loss) 24,068  887   15,895  1,718   8,456  (1,347)  35  424 
Add:           
Impairment of goodwill and other non-current assets 1,460  7,996   -  (19)  16  8,015   1,444  - 
Allowance for amounts due from related parties 43  126   43  126   -  -   -  - 
Loss on write-off of property, plant and equipment 691  661   199  309   492  242   -  110 
Loss (profit) from pension obligations 50  (6)  125  (5)  (81) (7)  6  7 
Fines and penalties 1,598  915   707  755   890  189   -  (29)
Other one-off items 1,293  1,568   -  741   1,293  742   -  85 
Adjusted operating income 29,203  12,147   16,969  3,624   11,066  7,834   1,486  597 
 ** including intersegment operations           
            

Attachment B

Consolidated statement of financial position
(All amounts are in millions of Russian rubles)

  December 31,
2015
 December 31,
2014
 January 1,
2014
Assets      
Current assets      
Cash and cash equivalents  3,079   3,983   8,979 
Trade and other receivables  15,981   19,809   22,477 
Due from related parties, net of allowance  96   138   196 
Inventories  35,189   36,337   46,629 
Income tax receivables  603   578   2,936 
Other current financial assets  45   186   360 
Other current assets  8,127   8,750   7,225 
Total current assets  63,120   69,781   88,802 
       
Assets of disposal group classified as held for sale     8,696    
       
Non-current assets      
Property, plant and equipment  215,844   224,299   226,253 
Mineral licenses  38,517   40,122   51,727 
Non-current financial assets  194   489   543 
Investments in associates  284   274   251 
Deferred tax assets  1,492   1,438   517 
Goodwill  21,378   22,697   22,520 
Other non-current assets  1,243   1,462   2,481 
Total non-current assets  278,952   290,781   304,292 
Total assets  342,072   369,258   393,094 
       
Equity and liabilities      
Current liabilities      
Interest-bearing loans and borrowings, including Interest payable, fines and penalties on overdue amounts of RUB 47,475 million, RUB 14,615 million and RUB 2,052 million
as of December 31, 2015, 2014 and January 1, 2014
  491,674   386,518   267,078 
Trade and other payables  54,524   61,493   51,973 
Advances received  3,492   4,286   4,290 
Due to related parties  78   44   1,024 
Provisions  2,532   2,130   1,531 
Pension obligations  1,120   1,072   877 
Finance lease liabilities  13,507   15,213   10,809 
Income tax payable  5,549   3,033   3,173 
Tax payable other than income tax  8,034   9,647   7,440 
Other current liabilities  26   36   29 
Total current liabilities  580,536   483,472   348,224 
       
Liabilities of disposal group classified as held for sale     8,607    
       
Non-current liabilities      
Interest-bearing loans and borrowings  4,308   9,346   25,251 
Provisions  3,439   2,998   4,303 
Pension obligations  3,746   3,445   4,903 
Finance lease liabilities  481   146   2,973 
Deferred tax liabilities  11,090   3,053   17,475 
Other non-current liabilities  189   1,157   3,453 
Income tax payable  137   3,447    
Total non-current liabilities  23,390   23,592   58,358 
Total liabilities  603,926   515,671   406,582 
       
Equity      
Common shares  4,163   4,163   4,163 
Preferred shares  833   833   833 
Additional paid-in capital  28,322   25,592   25,591 
Accumulated other comprehensive income (loss)  445   1,018   (11)
Accumulated deficit  (301,565)  (186,272)  (53,564)
Equity attributable to equity shareholders of Mechel PAO  (267,802)  (154,666)  (22,988)
       
Non-controlling interests  5,948   8,253   9,500 
Total equity  (261,854)  (146,413)  (13,488)
Total equity and liabilities  342,072   369,258   393,094 
 

Consolidated statement of profit (loss) and other comprehensive income (loss)
(All amounts are in millions of Russian rubles)

  Year ended
December 31,
2015
 Year ended
December 31,
2014
Continuing operations    
Revenue  253,141   243,992 
Cost of goods sold  (151,334)  (153,057)
Gross profit  101,807   90,935 
     
Selling and distribution expenses  (51,117)  (55,661)
Loss on write-off of property, plant and equipment  (691)  (661)
Impairment of goodwill and other non-current assets  (1,460)  (7,996)
Allowance for doubtful accounts  (1,464)  (3,671)
Taxes other than income taxes  (5,853)  (6,469)
Allowance for amounts due from related parties  (43)  (126)
Administrative and other operating expenses  (17,300)  (16,315)
Other operating income  189   851 
Total selling, distribution and operating expenses, net  (77,739)  (90,048)
Operating profit  24,068   887 
     
Finance income  183   107 
Finance costs  (60,452)  (28,110)
Foreign exchange gain (loss), net  (71,106)  (103,176)
Share of profit of associates     7 
Other income  526   684 
Other expenses  (347)  (1,486)
Total other income and (expense), net  (131,196)  (131,974)
Loss before tax from continuing operations  (107,128)  (131,087)
     
Income tax (expense) benefit  (8,322)  8,822 
Loss for the year from continuing operations  (115,450)  (122,265)
     
Discontinued operations    
Profit (loss) after tax for the year from discontinued operations, net  822   (11,702)
Loss for the year  (114,628)  (133,967)
     
Attributable to:    
Equity holders of the parent  (115,163)  (132,704)
Non-controlling interests  535   (1,263)


Other comprehensive income    
Other comprehensive income to be reclassified to profit or loss in subsequent periods, net of income tax:  295   1,170 
Exchange differences on translation of foreign operations  287   1,168 
Net gain on available for sale financial assets  8   2 
     
Other comprehensive loss not to be reclassified to profit or loss in subsequent periods, net of income tax:  (194)  (127)
Re-measurement losses on defined benefit plans  (194)  (127)
Other comprehensive income for the year, net of tax  101   1,043 
Total comprehensive loss for the year, net of tax  (114,527)  (132,924)
     
Attributable to:    
Equity holders of the parent  (115,064)  (131,675)
Non-controlling interests  537   (1,249)
     
Earnings (loss) per share    
Weighted average number of common shares  416,270,745   416,270,745 
Basic and diluted, loss for the year attributable to ordinary equity holders of the parent  (276.65)  (318.79)
Loss per share from continuing operations (Russian rubles per share)  basic and diluted  (278.44)  (289.96)
Earnings (loss) per share from discontinued operations (Russian rubles per share)  1.79   (28.83)
 

Сonsolidated statement of Cash Flows
(All amounts are in millions of Russian rubles, unless stated otherwise)

  Year ended December 31,
   2015   2014 
Cash flows from operating activities    
Net loss  (114,628)  (133,967)
(Profit) loss from discontinuing operations, net of income tax  (822)  11,702 
Net loss from continuing operations  (115,450)  (122,265)
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:    
Depreciation  12,397   12,639 
Depletion and amortization  1,688   1,790 
Foreign exchange loss  71,106   103,176 
Deferred income taxes  7,946   (15,525)
Allowance for doubtful accounts  1,464   3,671 
Allowance for amounts due from related parties  43   126 
Write-off of accounts receivable  247   185 
Write-off of taxes receivable     1,605 
Write-offs of inventories to net realisable value  1,003   394 
Revision in estimated cash flows of rehabilitation provision  (47)  (236)
Loss on write-off of property, plant and equipment  691   661 
Impairment of goodwill and non-current assets  1,460   7,996 
Loss (gain) on sale of property, plant and equipment  102   85 
Gain on sale of investments     (483)
Gain on accounts payable with expired legal term  (222)  (37)
Pension benefit plan curtailment gain  (142)  (58)
Pension service cost and actuarial loss, other expenses  192   52 
Finance income  (183)  (107)
Finance costs  60,452   28,110 
Other  480   1,492 
Changes in working capital items :    
Trade and other receivables  4,719   2,089 
Inventories  1,873   14,565 
Trade and other payables  (7,972)  (1,640)
Advances received  (664)  62 
Taxes payable and other current liabilities  (1,465)  8,771 
Settlements with related parties  (275)  (29)
Other current assets  997   (822)
Interest received  25   22 
Interest paid  (28,910)  (14,963)
Income taxes paid  (1,437)  (2,509)
Net operating cash flows of discontinued operations  (136)  (745)
Net cash provided by operating activities  9,982   28,072 
Cash flows from investing activities    
Monthly installments for acquisition of DEMP (4,819)  (3,223) 
Proceeds from disposal of securities 143   538  
Loans issued and other investments (6)  (36) 
Proceeds from disposal of Bluestone 101     
Proceeds from disposal of subsidiaries 76   632  
Purchases avaliable for sale securities    (113) 
Proceeds from loans issued 15   151  
Proceeds from disposals of property, plant and equipment 405   830  
Purchases of property, plant and equipment (5,076)  (11,365) 
Purchases of mineral licenses and other related payments (71)    
Interest paid, capitalized (830)  (5,141) 
Net investing cash flows of discontinued operations    (12) 
Net cash used in investing activities (10,062)  (17,739) 
     
Cash flows from financing activities    
Proceeds from borrowings 13,875   64,469  
Repayment of borrowings (11,896)  (77,761) 
Dividends paid (4)  (4) 
Dividends paid to noncontrolling interest (1)  (6) 
Acquisition of noncontrolling interest in subsidiaries (1)  (1,425) 
Repayment of obligations under finance lease (2,677)  (1,863) 
Sale leaseback proceeds    675  
Net financing cash flows of discontinued operations    (105) 
Net cash used in financing activities (704)  (16,020) 
     
Effect of exchange rate changes on cash and cash equivalents 331   901  
Net decrease in cash and cash equivalents (453)  (4,786) 
     
Cash and cash equivalents at beginning of period 1,344   6,130  
Cash and cash equivalents at end of period 891   1,344  


Alexey Lukashov
Director of Investor Relations
Mechel PAO
Phone: 7-495-221-88-88
Fax: 7-495-221-88-00
[email protected]

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Source: GlobeNewswire (May 13, 2016 - 7:00 AM EDT)

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