Metalloinvest posts 1H 2011 net income of $985 million on higher production

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Russian miner, Metalloinvest, has posted a 1H 2011 net income of $985 million under IFRS.

­The bottom line is up 89% year on year from the $520 million net result posted for 1H 2010, with 1H EBITDA climbing 63% year on year to $1.982 billion, on the back of a 54% rise in revenues to $5.132 billion.

The company says the results reflect a 7% increase in production on 2H 2010, with a 26% increase in iron or shipments, backed by a 15-20% half on half increase in prices, offsetting higher production and shipment costs

Deputy CEO and Chief Financial Officer, Pavel Mitrofanov, was positive about the posting, while noting that the company would continue to focus on higher value added production.

“The Company demonstrated solid performance in key financial metrics in H1 2011. We have achieved strong results due to a substantial increase in iron ore production volumes, a diversification of the client base and export growth to prospective Asian markets, predominantly China, as well as the management efforts to control production costs. At the same time, the Company continues to develop its key investment projects aimed at increasing high value-added iron ore output.”