Rusal's Aluminum Production Increased By 1.3% In 2018, Sales Fell 7.2%

- Feb 12, 2019-

RUSAL announced its operating results for the fourth quarter of 20,820 and the 12 months ended December 31,2020. among them:

Aluminum

Aluminum production in the fourth quarter of 2018 totaled 943,000 tons (0.4% increase from the quarter), with Siberian smelters accounting for 93% of total aluminum production. The total output dynamics remained roughly stable, with a capacity utilization rate of 96%;

In the fourth quarter of 2018, aluminum sales decreased by 16.2% to 877,000 tons. In the fourth quarter of 2018, sales of value-added products decreased to 333,000 tons (down 32.4% compared to the quarter). The sales of goods and value-added products (value-added products 3) in the fourth quarter of 2018 were subject to the general challenge of the short-term renewal of the foreign asset management office;

In the fourth quarter of 2018, the average aluminum realized price of 4 fell by 7.0% quarter-to-quarter to $2,115. The price decline was mainly driven by the quotation of the London Metal Exchange during the quotation of 5 (down 4.7% to US$ 2007/ton) and the average realized premium (down 35.3% to US$108/ton). The decline in the premium in the fourth quarter of 2018 was attributable to a number of factors, including the market's delivery deferred charges that led to the clearing of inventories by traders and the decline in the share of value-added products in the product mix as a result of the peripheral market factors associated with the sanctions;

Aluminum production in the 12 months of 2018 totaled 3.753 million tons (up 1.3% year-on-year);

In the 12 months of 2018, aluminum sales decreased by 7.2% year-on-year, totaling 3.671 million tons. Sales of value-added products decreased by 11.0% year-on-year, totaling 1.664 million tons. The current sales of value-added products accounted for 45% of total sales;

As the quotation during the quotation of the London Metal Exchange mainly showed positive dynamics in the first three quarters of 202018 (up 8.5% year-on-year to US$2,107 ton), in the 12 months of 2018, the average aluminum realized price by year The ratio increased by 7.3% to 2,259 US dollars. The average realized premium offer fell by 6.7% year-on-year to $152 million.

Alumina

In the fourth quarter of 2018, total alumina production decreased by 2.1% to 1.958 million tons. Russia's operations account for 34% of total alumina production. The company's alumina asset performance is roughly consistent with the production plan;

In June 202020, the company re-operated the Friguia alumina refinery in Guinea. Therefore, despite a number of factors (including abnormal weather conditions affecting the operational performance of Windaloco's capacity), the overall alumina production for the 12 months of 2018 still reached 7.774 million tons, which is maintained at a level similar to the 12 months of 2017. . Bauxite and nepheline ore

In the fourth quarter of 2018, bauxite production decreased by 3.4% year-on-year to 3.719 million tons. Due to the maintenance and repair of operating equipment in the mine, the production of nepheline decreased by 32.3% to 817,000 tons;

In June 202020, the company announced the completion of the first phase of the development of the Dian-Dian bauxite deposit and the restart of the Friguia bauxite and alumina refinery operations. Therefore, in 12 months of 2018, bauxite production increased by 18.9% to 13.847 million tons. Despite the decrease in the production of nepheline ore in the fourth quarter of 2018, due to the increase in production in the first three quarters of 20,218 compared to the same period in 202017, the overall nepheline production in the 12 months of 2018 remained almost unchanged, totaling 4.294 million tons ( Reduced by 0.9% year-on-year). According to the announcement, according to the company's earlier disclosure on April 6, 20,201, the US Treasury's Office of Foreign Assets Management has added the company to its list of specially designated nationals. On January 27, 2019, the Office of Foreign Assets Management announced the lifting of sanctions, so the company operated under sanctions for most of the year. This, combined with other factors, has led to several changes in the normal level of operational performance.