REG - Steppe Cement Ltd - Market Update for quarter ended 31 March 2022

Steppe CementAnnouncement

13/04/2022 07:16

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RNS Number : 2418I  Steppe Cement Limited  13 April 2022

13 April 2022

Steppe Cement Ltd

Market update for the quarter ended 31 March 2022

In the first quarter of 2022, Steppe Cement Ltd ("Steppe Cement" or the
"Company") sold 281,968

tonnes of cement for 6,299 million Tenge, compared to 265,556 tonnes of cement
for 4,882 million

Tenge in the first quarter of 2021, representing an increase of 6% and 29%
respectively.

 

The Kazakh cement market increased by 12% in Q1 2022 over the corresponding
quarter last year.

Steppe Cement's market share increased to 13.7% in the first quarter of 2022
from 13.2% in the first

quarter of 2021.

 

The average price for delivered cement in Q1 was 22,341 Tenge per tonne
(ex-VAT) compared with

21,332 Tenge per tonne in 2021, an increase of 5%. The ex-factory price for
the current quarter stood at 19,006 Tenge per tonne, compared to 18,134 Tenge
per tonne in 2021, an increase of 5% as well.

 

Exports from Kazakhstan decreased by 50% from 2021 as new factories opened in
Uzbekistan while imports to Kazakhstan increased from 6.5% to 8% of the
market, mostly from Russia. At the time of this report, the Russian Rouble and
KZT trading range have re-aligned and are consistent with historical trends.
 

The Company currently estimates Kazakhstan's cement market demand will remain
at 11 to 12 million tonnes but there is a high degree of uncertainty
regarding this due to the geopolitical situation.

 

The factory's clinker production increased by 8% in the first quarter thanks
to technical improvements and less stoppages. The cement mill number 1
separator will be commissioned in the summer. We have started work on the
cement mill number 2 separator, to be commissioned in 2023.

 

Currently there are no foreign exchange restrictions on our banking operations
and the Company can pay interest and dividends abroad.

 

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

Nominated Adviser: Contact Stephen Allen or Andrew Thomson at +61 8 9480 2500.

Broker: Contact Charlie Cryer at +44 20 3440 6800

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