Preliminary Update for the Year Ended 31 Dec 2012

Steppe Cement Ltd

17 January 2013

Preliminary update for the year ended 31 December 2012

Steppe Cement Ltd ("Steppe Cement") recorded revenue for the year ended 31 December 2012 of 17,912 million Tenge ("KZT"), which was 27% higher than the KZT 14,095 million achieved for the year ended 31 December 2011.

A sales volume of 1,349,561 tonnes of cement was achieved for the year ended 31 December 2012, a 9.8% improvement over the 1,229,288 tonnes for the year ended 31 December 2011.

Average price (ex-VAT) for delivered cement was KZT 13,272 per tonne for the year ended 31 December 2012, compared to KZT 11,448 per tonne for the corresponding year in 2011. For 2012, the average ex-factory price stood at KZT 11,145 per tonne representing US$74 per tonne based on current exchange rates. 

In December 2012, Kazakhstan experienced a short period of exceptionally cold weather which resulted in disturbance to production schedules for nearly two weeks. Normal operations were resumed in the last week of the year. This did not affect the sales for the quarter but it will reduce the opening stock of clinker available for the next selling season.

In 2012, the cement market in Kazakhstan increased to 7 million tonnes, an approximate 13% increase compared to 2011. As such, Steppe Cement's market share at the end of 2012 stood at 19.3%.

During 2012 Kazakhstan imported 900,000 tonnes of cement, mostly to West Kazakhstan, and exported 200,000 tonnes.

The full results and audited accounts denominated in US$ are expected to be published in April 2013.

Steppe Cement's AIM nominated adviser is RFC Ambrian Limited.

Contact Stephen Allen or Trinity McIntyre on +61 8 9480 2500.