Cheap ore pulls the rug out of "Metalloinvest".

The crisis in the market of metallurgical raw materials makes "Metalloinvest" seek new markets. But thanks to "Norilsk Nickel" shares it manages to save money on debt repayment.

From the beginning of this year, the price of iron ore decreased by 46% to $ 71 per 1 ton and continues to fall. And even "Metalloinvest" - one of the lowest cost producers of this raw material in the world (the company did not disclose the amount of costs per ton of production) – is not in the best shape. In Q3 the revenue of "Metalloinvest" compared with the previous fell by 9.1% to $ 1.5 billion, the EBITDA - by 19.1% to $ 415 million, return on this indicator was 26.4%. The net profit fell by 86.4% to $ 59 million. The company explains the falling in profits with the exchange rate differences due to the revaluation of the dollar debt, which amounts to 53%.