OREANDA-NEWS. ОАО Raspadskaya (MICEX-RTS: RASP) ("Raspadskaya" or "the Company") announces its preliminary operating results for Q4 and FY2014:

Sergey Stepanov, General Director of Raspadskaya Coal Company, said:

I am pleased to note that in 2014 we succeeded in implementing the Raspadskaya underground mine's restoration programme and launched new longwalls, thanks to the dedicated work of our employees. We fulfilled the operating plan with more than 10 million tonnes of raw coking coal produced by the Company in 2014. The Raspadskaya mine's capacity reached 4 million tonnes of raw coking coal for the first time since the accident in 2010. In 2015, we are planning to produce some 12 million tonnes of raw coking coal.

Q4 2014 Highlights:

In Q4 2014, overall raw coal production increased by 36% compared to Q3 2014, and amounted to 3.3 million tonnes due to the launch of the 4-9-25 longwall at the Raspadskaya underground mine. Commercial coal reserves in the longwall amount to 2.8 million tonnes. The Raspadskaya mine currently operates at four longwalls.

In Q4 2014, sales volumes of coking coal concentrate increased by 14% compared to Q3 2014 and amounted to 1.7 million tonnes. The increase was due to higher production volumes.

Share of domestic sales increased to 49% of total sales compared to 46% in Q3 2014. Export sales amounted to 51% of total sales, which is 3 p.p. lower than in Q3 2014.

In Q4 2014, domestic sales of coking coal concentrate increased to 849 thousand tonnes, or by 20% compared to Q3 2014, mainly due to increased shipments to MMK and NLMK.

In Q4 2014, exports of coal concentrate amounted to 892 thousand tonnes which is 9% higher compared to Q3 2014, mostly due to increased shipments to the Asia-Pacific region which accounted for 91% of the export sales. Shipments to Europe accounted for 9% of export sales.

Sales volumes of raw coal decreased by 6%, compared to Q3 2014 due to lower production of the KO coal grade by the Raspadskaya-Koksovaya mine because of the longwall move. The decrease in sales volumes of raw coal was partly offset by increased shipments of GZh and GZhO coal grades (produced by other mines) to EVRAZ's entities.

In Q4 2014, the weighted average selling price of coal concentrate in rouble terms grew by 22% compared to Q3 2014 due to increased quality of coal concentrate and respective higher trade margin in the domestic market. At the same time, a downtrend for coal prices continued at export markets due to challenging global market conditions. However, the growth of US dollar exchange rate compensated the decline in the price and led to its growth in rouble terms in the reporting quarter.

FY2014 Highlights:

In 12m 2014, overal raw coal production amounted to 10.2 million tonnes, 31% higher than in 12m 2013, mostly due to the successful implementation of the restoration programme at the Raspadskaya underground mine and the launch of new longwalls.

Sales volumes of coking coal concentrate increased by 17% compared to 12m 2013 and amounted to 6.0 million tonnes. The increase was mainly driven by increased raw coal production.

The domestic sales of coking coal concentrate recovered to the level of 2013 and amounted to 3.0 million tonnes due to increased raw coking coal production and an increase in demand thanks to better concentrate quality.

Export sales of coal concentrate in 12m 2014 amounted to 3.0 million tonnes, or 51% of total sales, with shipments to the Asia-Pacific region accounting to 88% and shipments to Europe - 12%. The growth in export sales of coal concentrate was a result of increased production and entrance to the new markets in the Asia-Pacific region.

Sales of raw coal grew to 1.0 million tonnes, or by 44% compared to 12m 2013, due to increased shipments to EVRAZ's plants.

In 12m 2014, the weighted average selling price of coal concentrate decreased by 9% in rouble terms due to challenging global coal market conditions.