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ChelyabinskZincPlant: 9M 2015 Financial Results

NEWS RELEASE                                  

                                      For Immediate Release - December 11, 2015

    Chelyabinsk Zinc Plant Announces 9M 2015 Consolidated Financial Results    

Chelyabinsk, Russia - December 11, 2015 - Chelyabinsk Zinc Plant (LSE, MICEX:
CHZN), Russia's largest producer of zinc and zinc alloys, is pleased to
announce its consolidated financial results for the nine months ended September
30, 2015 based on consistent accounting policy (Unaudited).

9M 2015 HIGHLIGHTS

  * Chelyabinsk Zinc Plant's (CZP) revenue totalled RUB 18,291 mln. 

  * EBITDA amounted to RUB 4,800 mln or 26% of revenue.

  * Net profit was RUB 4,120 mln or 23% of revenue.

Consolidated financial results

(in millions of Russian Roubles)       9M          9M     Change, % 
                                      2015        2014              
                                                                    
Revenue                              18,291      11,064      65%    
                                                                    
Gross profit                          5,493      3,180       73%    
                                                                    
                   Gross margin, %         30%        29%           
                                                                    
EBITDA (1)                            4,800      2,385       101%   
                                                                    
                  EBITDA margin, %         26%        22%           
                                                                    
Profit before income tax              5,208      2,102       148%   
                                                                    
Net profit                            4,120      1,637       152%   
                                                                    
                     Net margin, %         23%        15%           

(1) EBITDA, for any relevant period, represents operating profit before
interest, income tax, depreciation and amortization.

EBITDA is not a measurement of CZP's operating performance presented in the
financial information, prepared in accordance with IFRS, and should not be
considered as an alternative to operating profit or any other performance
measure derived in accordance with IFRS or other relevant financial framework.

Revenue

9M 2015 consolidated revenue increased by 65% to RUB 18,291 mln as compared to
9M 2014.

The average LME zinc price in 9M 2015 decreased by 5% as compared to the
relevant period of the previous year and amounted to US$ 2,035/tonne. The
average LME lead quotes decreased by 14.6% to US$ 1,818 /tonne. Positive effect
on revenue was made by the growth of exchange rates (US Dollar, Pound Sterling,
Kazakhstan Tenge) against the Russian Rouble.

Revenue structure

In 9M 2015, revenue of CZP increased by 61% as compared to 9M 2014 and amounted
to RUB 13,521 mln (9M 2014: RUB 8,417 mln). The growth of revenue was due to
67.5% increase of US dollar/Russian Rouble exchange rate (9M 2015: RUB 59.3; 9M
2014: RUB 35.4), increase of sales on the domestic market and export by 37% (9M
2015: 93.2 thousand tonnes; 9M 2014: 68.1 thousand tonnes) and sales of
precious metals (in 9M 2014 there were no sales).

Revenue of The Brock Metal Company Limited for 9M 2015 amounted to RUB 4,340
mln, 87% higher than in 9M 2014 (RUB 2,325 mln). This increase was due to 54%
growth of Pound Sterling/Russian Rouble exchange rate (9M 2015: RUB 91.4; 9M
2014: RUB 59.2) and 19% growth of zinc alloys sales (9M 2015: 28.7 thousand
tonnes; 9M 2014: 24.2 thousand tonnes).

Revenue of Nova Zinc for 9M 2015 increased by 34% compared to 9M 2014 and
amounted to RUB 430 mln (9M 2014: RUB 322 mln). The increase was due to 53%
growth of Kazakhstan Tenge/Russian Ruble exchange rate (9M 2015: RUB 0.305; 9M
2014: RUB 0.2).

Cost of Sales

Cost of materials and consumables used primarily comprises of the cost of zinc
concentrate, zinc containing raw materials, materials for alloys production and
auxiliary materials used in the production process. The main reasons of changes
were the growth of raw materials price due to increase of exchange rates
against the Russian Rouble, volume growth of purchased raw materials (due to
structure changes of zinc and zinc alloys sales related to JSC «CZP») and
growth of auxiliary materials prices.

Net profit

Net profit for 9M 2015 totalled RUB 4,120 mln compared to RUB 1,637 mln for 9M
2014. The main factors of net income growth were the Russian Rouble
devaluation, growth of zinc and zinc alloys domestic and export sales, sales of
precious metals and also thereversal of previously accrued impairment loss of
LLP "Nova Zinc" property, plant and equipment.

About Chelyabinsk Zinc Plant

Chelyabinsk Zinc Plant is the leading Russian zinc producer. In 2014 the plant
produced 168,601 tonnes of saleable SHG zinc.

According to consolidated IFRS accounts, revenue in 2014 was RUB 16,508 mln and
EBITDA was RUB 3,825 mln.

Ordinary shares of CZP are traded on the Moscow exchange MICEX-RTS under ticker
CHZN and Global Depository Receipts (GDR) are traded on the London Stock
Exchange under ticker CHZN.

                                                   Investor and Media Contacts:

                                             Natalya Vasilieva, PR, ngv@zinc.ru

                                                        Tel: +7 (351) 799-01-52

                                              Evgeny Ponomarev, IR, eyp@zinc.ru

                                                          Tel: +7 963 998-55-58

This announcement may include forward-looking statements. CZP's actual results
may differ materially from those made in or suggested by the forward-looking
statements contained in this announcement. By their nature, forwarding-looking
statements involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future performance. Even if
the actual results are consistent with the forward-looking statements contained
in this announcement, those results may not be indicative of results or
developments in future periods. CZP does not undertake any obligation to update
any forward-looking statements to reflect events that occur or circumstances
that arise after the date of this announcement. 



END



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