GREY:HRIVF - Post by User
Post by
riskydogon May 25, 2010 2:48pm
537 Views
Post# 17129483
Severstal Q1 loss reason for selloff?
Severstal Q1 loss reason for selloff?HRG has been declining since Severstal reported their Q1 loss of $785 million on May 14. This loss was attributed to an $855 million write-down on the value of their Lucchini unit. However, the gold division continues to be a strong performer and will improve.
"Our gold business has continued to deliver strong margins. In Q1 2010, the EBITDA margin was 49.6% compared to 47.1% in Q4 2009. The cash cost per ounce of production decreased by 2.8% quarter-on-quarter to an average of $562 in Q1 2010 from $578 in Q4 2009. Sales volume was 123 Koz from 161 Koz in Q4 2009 due to seasonal factors and when warmer weather returns to Russia we expect to ramp up production. Our focus for this business is to further improve operational and financial efficiencies as well as volume growth".
HRG is a steal at these current levels!