Financial Analysis - Mining and Metallurgical Company Norilsk Nickel OJSC or GMK Norilsk Nickel is a

Page 1

24.04.2013

Company Analysis - Overview Ticker:

MMC Norilsk Nickel OJSC

MNOD LI

London Intl: MNOD, Currency: USD

Currency: Sector: Materials

Industry: Metals & Mining

Year:

Telephone 7-495-787-76-67 Revenue (M) Website www.nornik.ru No of Employees Address 22 Voznesensky pereulok Moscow, 115230 Russian Federation Share Price Performance in USD Price 16.05 1M Return 52 Week High 20.44 6M Return 52 Week Low 13.96 52 Wk Return 52 Wk Beta 1.11 YTD Return Credit Ratings Bloomberg S&P Moody's Fitch

Mining and Metallurgical Company Norilsk Nickel OJSC or GMK Norilsk Nickel is a producer of base and precious metals. The Company's main products are nickel and palladium. MMC Norilsk Nickel also produces copper, cobalt, platinum, gold, silver and other precious metals. MMC Norilsk Nickel is headquartered in Moscow with its main production facilities in Taimyr and Kola peninsula.

Benchmark: FTSE 100 INDEX (UKX)

12'065 #N/A N/A

Sales (M) 11075 990

-3.9% 4.0% -3.8% -12.9%

BBBBB+

Date Date Date

12/09 8.4x 6.8x -

12/10 6.5x 5.8x -

12/11 5.1x 4.6x -

12/12 8.0x 6.8x -

12/13E 8.8x 2.2x 1.8x 9.3%

12/14E 8.2x 2.2x 1.8x 10.3%

12/15E 7.3x 2.0x 1.7x 8.8%

12/09 Gross Margin 51.1 EBITDA Margin 50.9 Operating Margin 41.4 Profit Margin 30.4 Return on Assets 11.9 Return on Equity 21.3 Leverage and Coverage Ratios 12/09 Current Ratio 2.0 Quick Ratio 1.0 EBIT/Interest 27.6 Tot Debt/Capital 0.3 Tot Debt/Equity 0.4 Eff Tax Rate % 24.3

12/10 61.8 57.7 51.4 25.8 14.1 21.2

12/11 59.0 51.3 45.9 25.5 16.8 25.3

12/12 49.1 40.9 34.3 18.0 10.9 18.1

12/13E 48.1 42.3 35.9 25.0 17.5 21.5

12/14E 48.3 42.8 35.2 25.5 15.5 22.8

12/15E 46.2 43.2 35.2 26.1 18.8 23.4

26.09.2011 11.07.2012 19.08.2011

Business Segments in USD Mining and Metallurgy Other Energy and Utilities

Outlook Outlook Outlook

NEG STABLE STABLE

Sales (M) 6066 2750 1226 1015 1004 4

8% 0%

8% 8%

Valuation Ratios P/E EV/EBIT EV/EBITDA P/S P/B Div Yield Profitability Ratios %

Geographic Segments in USD Europe Asia North America Russian Federation Adjustments Other Nickel

10% 51%

23% 92%

Europe Asia Mining and Metallurgy

Other

North America Russian Federation Adjustments Other

12/10 4.8 2.4 75.5 0.1 0.2 22.8

12/11 1.7 0.7 61.7 0.3 0.5 25.9

12/12 1.7 0.4 17.1 0.3 0.4 31.8

Current Capitalization in USD Common Shares Outstanding (M) Market Capitalization (M) Cash and ST Investments (M) Total Debt (M) Preferred Equity (M) LT Investments in Affiliate Companies (M) Investments (M) Enterprise Value (M)

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: info@qmsadv.com |

#N/A Field Not Applicable 27631.2 #N/A N/A #N/A N/A 0.0 0.0 0.0


Company Analysis - Analysts Ratings MMC Norilsk Nickel OJSC Buy and Sell Recommendations vs Price and Target Price

25 7%

7%

5%

6%

13%

5%

18%

25 20

80% 40%

10 10

avr.12

mai.12

juin.12

19%

27%

29%

sept.12

oct.12

août.12

Buy

Hold

Sell

nov.12

Price

déc.12

févr.13

mars.13

Target Price

Date

Buy

Hold

Sell

Date

29-Mar-13 28-Feb-13 31-Jan-13 31-Dec-12 30-Nov-12 31-Oct-12 28-Sep-12 31-Aug-12 31-Jul-12 29-Jun-12 31-May-12 30-Apr-12

58% 53% 50% 59% 47% 29% 27% 19% 13% 7% 7% 7%

37% 42% 44% 24% 40% 64% 67% 75% 81% 87% 87% 87%

5% 5% 6% 18% 13% 7% 7% 6% 6% 7% 7% 7%

24-Apr-13 23-Apr-13 22-Apr-13 19-Apr-13 18-Apr-13 17-Apr-13 16-Apr-13 15-Apr-13 12-Apr-13 11-Apr-13 10-Apr-13 9-Apr-13 8-Apr-13 5-Apr-13 4-Apr-13 3-Apr-13 2-Apr-13 1-Apr-13 29-Mar-13 28-Mar-13 27-Mar-13 26-Mar-13 25-Mar-13 22-Mar-13 21-Mar-13 20-Mar-13 19-Mar-13 18-Mar-13 15-Mar-13 14-Mar-13

Price Target Price 16.05 15.53 15.78 15.74 15.50 15.25 15.68 15.89 16.57 16.76 17.17 17.07 16.59 16.48 16.60 16.73 16.85 16.89 16.89 16.89 16.65 16.51 16.27 16.71 16.76 16.74 16.59 16.65 17.21 17.35

19.82 19.82 20.55 20.84 20.84 20.84 21.18 21.47 21.58 21.58 21.48 21.48 21.60 21.60 21.60 21.60 21.81 21.81 21.81 21.81 21.81 21.81 21.72 21.72 21.59 21.59 21.70 21.70 21.70 21.57

Broker

Analyst

Gazprombank Morgan Stanley HSBC Deutsche Bank Alfa-Bank Sberbank CIB UFS-Finance Investment Company Societe Generale Credit Suisse Goldman Sachs Otkritie Capital JPMorgan Barclays Renaissance Capital BCS VTB Capital Aton LLC TKB Capital

NATALIA SHEVELEVA DMITRIY KOLOMYTSYN VLADIMIR ZHUKOV ERIK DANEMAR BARRY EHRLICH MIKHAIL STISKIN ILYA BALAKIREV ABHISHEK SHUKLA SEMYON MIRONOV YULIA CHEKUNAEVA DENIS GABRIELIK YURIY A VLASOV VLADIMIR SERGIEVSKIY BORIS KRASNOJENOV KIRILL CHUYKO NIKOLAY SOSNOVSKIY DINNUR GALIKHANOV MARIA KALVARSKAIA

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: info@qmsadv.com |

Recommendation overweight Underwt/In-Line neutral hold equalweight hold buy buy outperform neutral/neutral buy neutral overweight buy buy hold sell buy

BCS

janv.13

0 juil.12

Aton LLC

13%

5

TKB Capital

7%

0

58%

VTB Capital

7%

53%

Renaissance Capital

0%

7%

50%

Barclays

59% 47%

20%

5 JPMorgan

40%

Otkritie Capital

81%

15

Goldman Sachs

87%

15

64%

Credit Suisse

87%

67%

20

Societe Generale

87%

75%

37%

Sberbank CIB

60%

42%

44%

24%

UFS-Finance Investment Company

6%

Alfa-Bank

6%

Deutsche Bank

7%

HSBC

7%

Morgan Stanley

7%

Brokers' Target Price 30

Gazprombank

100%

Price

Broker Recommendation

Target price in USD

Target

Date

20.00 11.00 16.50 20.00 17.30 18.32 23.60 23.00 19.60 21.00 19.70 19.10 22.50 23.00 23.00 20.00 14.60 27.00

24-Apr-13 23-Apr-13 21-Apr-13 19-Apr-13 16-Apr-13 16-Apr-13 16-Apr-13 15-Apr-13 3-Apr-13 15-Mar-13 15-Mar-13 21-Feb-13 14-Feb-13 28-Jan-13 18-Jan-13 21-Dec-12 4-Dec-12 11-Jan-11


24.04.2013

MMC Norilsk Nickel OJSC

Company Analysis - Ownership Ownership Type

Ownership Statistics Shares Outstanding (M) Float Short Interest (M) Short Interest as % of Float Days to Cover Shorts Institutional Ownership Retail Ownership Insider Ownership

Others

100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Others Institutional Ownership Distribution Others

Institutional Ownership

Retail Ownership

Insider Ownership

Pricing data is in USD Top 20 Owners: Holder Name VANGUARD GROUP INC BARING INTERNATIONAL BNP PARIBAS INV PART FRANKLIN RESOURCES BARING ASSET MANAGEM JP MORGAN VAN ECK ASSOCIATES C BLACKROCK DWS INVESTMENT SA GRANTHAM MAYO VAN OT ALLIANZ ASSET MANAGE ALLIANCE BERNSTEIN TEMPLETON INVESTMENT SEB PICTET CONSEIL EN IN CARNEGIE FONDER AB/S THAMES RIVER CAPITAL STATE STREET PRINCIPAL FINANCIAL PICTET & CIE

Others

100.00% 0.00% 0.00% 0.00% 0.00%

0% 0%0%0% 0% 0%

100%

Others

Others

TOP 20 ALL

Position 8'318'711 8'137'574 5'129'290 5'073'960 4'797'930 4'561'641 4'434'338 4'352'197 3'536'560 3'337'724 2'533'017 2'528'259 2'453'764 2'103'863 1'655'244 1'573'000 1'504'605 1'373'744 1'179'718 1'157'555

Position Change -446'840 8'137'574 1'274'754 75'900 944'039 25'615 52'940 432'194 300'000 0 903'464 900'371 0 7'738 819'149 0 0 -1'964 451'070 1'157'555

Market Value 133'515'312 130'608'063 82'325'105 81'437'058 77'006'777 73'214'338 71'171'125 69'852'762 56'761'788 53'570'470 40'654'923 40'578'557 39'382'912 33'767'001 26'566'666 25'246'650 24'148'910 22'048'591 18'934'474 18'578'758

% of Ownership 0.48% 0.47% 0.30% 0.29% 0.28% 0.26% 0.26% 0.25% 0.21% 0.19% 0.15% 0.15% 0.14% 0.12% 0.10% 0.09% 0.09% 0.08% 0.07% 0.07%

Report Date

Position

Position Change

Market Value

% of Ownership

Report Date

31.12.2012 31.12.2012 28.02.2013 31.12.2012 31.12.2012 28.02.2013 23.04.2013 22.04.2013 28.02.2013 31.05.2012 31.03.2013 28.02.2013 31.12.2012 31.12.2012 31.01.2013 28.02.2013 30.09.2012 23.04.2013 31.03.2013 31.01.2013

Source MF-AGG 13F ULT-AGG ULT-AGG MF-AGG ULT-AGG ULT-AGG ULT-AGG MF-AGG MF-AGG ULT-AGG ULT-AGG MF-AGG ULT-AGG MF-AGG MF-AGG MF-AGG ULT-AGG ULT-AGG MF-AGG

Top 5 Insiders: Holder Name

Geographic Ownership

Geographic Ownership Distribution

1%

#N/A Field Not Applicable

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: info@qmsadv.com |

Source

Country UNITED STATES BRITAIN FRANCE UNITED STATES IRELAND

Institutional Ownership 0% 0% 0%

UNITED STATES UNITED STATES LUXEMBOURG UNITED STATES GERMANY UNITED STATES BRITAIN LUXEMBOURG SWEDEN BRITAIN UNITED STATES UNITED STATES SWITZERLAND

0%

100%

Others

Others


Company Analysis - Financials I/IV MMC Norilsk Nickel OJSC Financial information is in USD (M) Periodicity:

Fiscal Year

Equivalent Estimates 12/02

12/03

12/04

12/05

12/06

12/07

12/08

12/09

12/10

12/11

12/12

12/13E

12/14E

12/15E

Revenue - Cost of Goods Sold

3'133 1'774

5'201 2'873

7'033 3'179

7'169 2'994

11'550 3'158

17'119 5'882

13'980 7'626

8'542 4'177

12'775 4'883

14'122 5'793

12'065 6'145

12'301

12'833

13'838

Gross Income - Selling, General & Admin Expenses (Research & Dev Costs)

1'360 568

2'328 751

3'854 866 40

4'175 841 14

8'392 1'090 20

11'237 3'878 18

6'354 1'869 19

4'365 830

7'892 1'325

8'329 1'851

5'920 1'777

5'912

6'201

6'386

Operating Income - Interest Expense - Foreign Exchange Losses (Gains) - Net Non-Operating Losses (Gains)

792 109 -17 -174

1'577 40 -15 213

2'988 68 12 355

3'334 83 25 110

7'302 67 -65 523

7'359 284 -146 -514

4'485 397 397 3'964

3'535 128 141 -40

6'567 87 22 -324

6'478 105 334 393

4'143 242 -214 972

4'415

4'518

4'876

Pretax Income - Income Tax Expense

874 290

1'339 493

2'553 696

3'116 838

6'777 1'805

7'735 2'459

-273 282

3'306 802

6'782 1'548

5'646 1'460

3'143 1'000

3'933

4'198

4'425

Income Before XO Items - Extraordinary Loss Net of Tax - Minority Interests

584 0 -8

846 0 -16

1'857 0 -21

2'278 -74 -3

4'972 -993 -24

5'276 0 -51

-555 0 -106

2'504 -147 51

5'234 2'145 -209

4'186 560 22

2'143 0 -27

592

862

1'878

2'281

4'996

5'327

4'279

2'651

5'442

4'164

3'119

48.2

20.7

3'071 1.83 1.50 0.82

3'269 1.96 1.66 0.85

3'610 2.21 1.41 0.64

4'352

7'370

7'240

4'932

5'202

5'487

5'983

Income Statement

Diluted EPS Before XO Items Net Income Adjusted* EPS Adjusted Dividends Per Share Payout Ratio %

24.6

33.6

16.4

12.3

7.7

14.9

1'215

2'029

3'528

3'912

7'888

8'296

Total Shares Outstanding Diluted Shares Outstanding EBITDA

5'788

*Net income excludes extraordinary gains and losses and one-time charges.

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Company Analysis - Financials II/IV Periodicity:

12/02

12/03

12/04

12/05

12/06

12/07

12/08

12/09

12/10

12/11

12/12

3265.99906 3701.64305 262 958 94 136 212 361 1'826 1'503 873 744

3967 1'346

5553 922

5205 2'178

12510 4'008

7059 1'995

8408 3'632

12974 5'405

6569 1'627

6814 1'037

290 1'442 889

278 1'301 3'052

534 1'471 1'022

661 2'108 5'733

278 1'959 2'827

683 1'990 2'103

995 2'246 4'328

970 2'623 1'349

697 3'197 1'883

12/13E

12/14E

12/15E

8.78

8.90

9.41

Balance Sheet Total Current Assets + Cash & Near Cash Items + Short Term Investments + Accounts & Notes Receivable + Inventories + Other Current Assets Total Long-Term Assets + Long Term Investments Gross Fixed Assets Accumulated Depreciation + Net Fixed Assets + Other Long Term Assets

6'424 104 6'731 415 6'315 4

7'633 163 8'190 920 7'270 199

9'665 1'407 9'276 1'424 7'852 406

9'177 690 8'985 1'840 7'145 1'342

11'074 2'615 10'892 2'758 8'134 325

23'186 2'982 19'432 4'451 14'981 5'223

13'764 523 18'071 7'334 10'737 2'504

14'352

10'935

12'343

14'160

18'548 7'531 11'017 3'335

19'730 10'577 9'153 1'782

19'477 9'892 9'585 2'758

23'100 11'173 11'927 2'233

Total Current Liabilities + Accounts Payable + Short Term Borrowings + Other Short Term Liabilities

1'468 211 453 804

1'638 156 267 1'215

1'383 151 552 680

1'594 170 357 1'067

1'251 191 158 902

6'434 352 3'973 2'109

2'126 281 872 973

4'112 243 2'986 883

2'697 374 1'256 1'067

3'830 346 2'754 730

3'969 449 2'526 994

956 146 810

1'088 182 906

1'606 657 949

1'739 635 1'104

1'892 632 1'260

7'441 4'103 3'338

6'912 5'568 1'344

3'893 2'378 1'515

3'238 1'575 1'663

3'860 2'401 1'459

4'065 2'497 1'568

Total Liabilities + Long Preferred Equity + Minority Interest + Share Capital & APIC + Retained Earnings & Other Equity

2'425 0 101 688 6'476

2'726 0 346 751 7'511

2'989 0 366 792 9'485

3'333 0 334 9 11'054

3'143 0 319 619 12'198

13'875 0 2'318 1'398 18'105

9'038 0 1'054 1'398 9'333

8'005 0 1'080 1'398 12'277

5'935 0 598 1'519 15'857

7'690 0 120 1'519 9'583

8'034 0 109 1'519 11'312

Total Shareholders Equity

7'265

8'609

10'643

11'397

13'136

21'821

11'785

14'755

17'974

11'222

12'940

Total Liabilities & Equity

9'690

11'335

13'632

14'730

16'279

35'696

20'823

22'760

23'909

18'912

20'974

Total Long Term Liabilities + Long Term Borrowings + Other Long Term Borrowings

Book Value Per Share Tangible Book Value Per Share

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: info@qmsadv.com |


Company Analysis - Financials III/IV Periodicity:

12/02

12/03

12/04

12/05

12/06

12/07

12/08

12/09

12/10

12/11

12/12

12/13E

12/14E

12/15E

Net Income + Depreciation & Amortization + Other Non-Cash Adjustments + Changes in Non-Cash Capital

592 423 -276 -127

862 451 133 208

1'878 540 -3'412 3'498

2'355 578 -3'913 3'974

5'989 586 -655 -273

5'327 937 1'026 75

-449 1'303 -309 370

2'600 817 586 -560

3'298 803 1'826 -410

3'604 762 996 -658

2'170 789 1'071 -595

2'763

2'984

3'419

Cash From Operating Activities + Disposal of Fixed Assets + Capital Expenditures + Increase in Investments + Decrease in Investments + Other Investing Activities

611 4 -353 -40 191 -271

1'655 21 -440 -142 5 -60

2'504 57 -618 0 0 -1'467

2'994 38 -773 0 0 -720

5'647 46 -743

7'365 88 -1'140

915 88 -2'360

3'443 38 -1'061

5'517 33 -1'728

4'704 23 -2'201

3'435 10 -2'692

-2'441

-2'324

-2'216

1'075

-11'732

2'730

513

249

300

-233

Cash From Investing Activities + Dividends Paid + Change in Short Term Borrowings + Increase in Long Term Borrowings + Decrease in Long Term Borrowings + Increase in Capital Stocks + Decrease in Capital Stocks + Other Financing Activities

-470 -170 -660 228 -20 0 0 -109

-617 -147 -292 175 -213 0 0 16

-2'028 -618 -36 872 -197 0 0 47

-1'455 -201 85 112 -417 0 -1'457 -64

378 -1'079 -482

-12'784 -849

458 -1'670

-510

-1'446 -1'208

-1'878 -1'234

-2'915 -960

-11

10'183 -3'915

3'723 -5'240

113 -1'193

628 -3'048 1'705

-999 -2'198

1'838

-2'617

-29 -78

-111

3'694 -1'351 1'246 -8'995 36

2'478 -2'666 0 0 38

Cash From Financing Activities

-731

-461

68

-1'942

-4'769

7'257

-5'804

-1'187

-2'034

-6'604

-1'110

Net Changes in Cash

-590

577

544

-403

1'256

1'838

-4'431

1'746

2'037

-3'778

-590

258

1'214

1'886

2'221

4'904

6'225

-1'445

2'382

3'789

2'503

743

331 -190

1'239 905

1'935 2'582

2'282 2'039

4'953 4'457

6'419 12'581

-2'874

2'479 1'340

3'856 1'402

2'581 4'869

908 565

Cash Flows

Free Cash Flow (CFO-CAPEX) Free Cash Flow To Firm Free Cash Flow To Equity Free Cash Flow per Share

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Company Analysis - Financials IV/IV Periodicity:

12/02

12/03

12/04

12/05

12/06

12/07

12/08

12/09

12/10

12/11

12/12

7.7x 6.8x

3.8x 3.0x

8.4x 6.8x

6.5x 5.8x

5.1x 4.6x

8.0x 6.8x

12/13E

12/14E

12/15E

8.8x

8.2x

7.3x

2.2x 1.8x 9.3%

2.2x 1.8x 10.3%

2.0x 1.7x 8.8%

48.1% 42.3% 35.9% 25.0% 17.5% 21.5%

48.3% 42.8% 35.2% 25.5% 15.5% 22.8%

46.2% 43.2% 35.2% 26.1% 18.8% 23.4%

Ratio Analysis Valuation Ratios Price Earnings EV to EBIT EV to EBITDA Price to Sales Price to Book Dividend Yield Profitability Ratios Gross Margin EBITDA Margin Operating Margin Profit Margin Return on Assets Return on Equity

43.4% 38.8% 25.3% 18.9% 6.1% 8.9%

44.8% 39.0% 30.3% 16.6% 8.2% 11.2%

54.8% 50.2% 42.5% 26.7% 15.0% 20.3%

58.2% 54.6% 46.5% 32.8% 16.6% 22.1%

72.7% 68.3% 63.2% 51.9% 38.6% 50.2%

65.6% 48.5% 43.0% 31.1% 20.5% 33.0%

45.5% 41.4% 32.1% -3.2% -1.6% -3.0%

51.1% 50.9% 41.4% 30.4% 11.9% 21.3%

61.8% 57.7% 51.4% 25.8% 14.1% 21.2%

59.0% 51.3% 45.9% 25.5% 16.8% 25.3%

49.1% 40.9% 34.3% 18.0% 10.9% 18.1%

Leverage & Coverage Ratios Current Ratio Quick Ratio Interest Coverage Ratio (EBIT/I) Tot Debt/Capital Tot Debt/Equity

2.22 0.39 7.27 0.08 0.08

2.26 0.89 39.40 0.05 0.05

2.87 1.18 43.94 0.10 0.11

3.48 0.75 40.17 0.08 0.09

4.16 2.17 108.99 0.06 0.06

1.94 0.73 25.91 0.27 0.37

3.32 1.07 11.30 0.35 0.55

2.04 1.05 27.62 0.27 0.36

4.81 2.37 75.48 0.14 0.16

1.72 0.68 61.70 0.31 0.46

1.72 0.44 17.12 0.28 0.39

Others Asset Turnover Accounts Receivable Turnover Accounts Payable Turnover Inventory Turnover

0.32 14.07 6.63 0.95

0.50 18.41 13.05 1.72

0.56 21.62 20.31 2.16

0.51 25.24 17.78 2.18

0.74 28.45 18.44 2.28

0.66 28.65 24.01 3.29

0.49 29.78 23.62 3.75

0.39 17.78 16.06 2.12

0.55 15.23 16.66 2.31

0.66 14.37 17.14 2.38

0.60 14.48 16.90 2.11

33.1%

36.8%

27.3%

26.9%

26.6%

31.8%

24.3%

22.8%

25.9%

31.8%

Effective Tax Rate

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Company Analysis - Peers Comparision MMC NORILSK ADR Latest Fiscal Year:

EVRAZ PLC

BHP BILLITON LTD UNITED CO RUSAL

12/2012 20.44 25.01.2013 13.96 01.06.2012 3'278'994

12/2012 384.30 30.04.2012 151.10 18.04.2013 3'241'562

Current Price (4/dd/yy)

16.05

166.30

52-Week High % Change

-21.5% 15.0% -

-56.7% 10.1% 1'339.9

52-Week High 52-Week High Date 52-Week Low 52-Week Low Date Daily Volume

52-Week Low % Change Total Common Shares (M)

Market Capitalization Total Debt Preferred Stock Minority Interest Cash and Equivalents

Enterprise Value Total Revenue

EV/Total Revenue

EBITDA

EV/EBITDA

EPS

P/E

Revenue Growth EBITDA Growth EBITDA Margin

XSTRATA PLC

ANGLO AMER PLC

LONMIN PLC

MAGNITOGORSK

12/2012 5.70 26.04.2012 3.81 02.04.2013 4'595'000

12/2012 1'310.00 01.02.2013 787.60 27.11.2012 15'793

12/2012 1'201.00 01.02.2013 760.47 27.06.2012 4'406'533

12/2012 2'440.00 02.05.2012 1'540.00 18.04.2013 3'018'744

09/2012 568.60 02.05.2012 226.96 09.11.2012 1'024'259

31.70

3.94

918.00

989.80

1'616.50

-19.4% 5.4% 5'297.6

-30.9% 3.4% 15'193.0

-29.9% 16.6% 3'032.2

-17.6% 30.2% 3'002.7

-33.8% 5.0% 1'391.0

SEVERSTAL

IMPALA PLATINUM

NLMK OAO

12/2012 12.70 02.05.2012 6.70 15.04.2013 11'494'300

12/2012 470.00 14.09.2012 233.00 17.04.2013 1'967'720

06/2012 17'600.00 15.01.2013 10'845.00 15.04.2013 1'045'689

267.60

7.20

255.80

-52.9% 17.9% 381.8

-43.3% 7.5% 11'006.0

-45.6% 9.8% 837.7

12'014.00

54.09

119.70

25.60

54.68

-31.7% 10.8% 615.8

-22.6% 18.9% 5'993.2

-54.7% 7.5% 416.3

-35.8% 6.2% 582.3

-24.4% 13.0% 1'847.0

2'449

158'638

59'860

174'996

29'721

22'529

1'521

80'455

214'288

75'954

8'169.0 200.0 1'320.0

28'330.0 1'215.0 4'781.0

11'334.0 490.0

348.3 282.6 1'038.3

17'067.0 2'339.0 1'983.0

16'760.0 6'130.0 9'094.0

736.0 257.0 315.0

3'867.0 155.0 424.0

5'709.5 20.8 1'750.1

3'609.0 2'307.0 1'193.0

48'193 Valuation

10'788

194'666

18'554

5'152

62'800

14'726.0 14'726.0 14'735.6 15'475.0 0.9x 0.9x 0.7x 0.7x 1'599.0 1'599.0 2'102.6 2'415.1 7.9x 7.9x 5.0x 4.2x -0.36 -0.23 0.16 0.31 15.9x 8.1x (10.2%) (42.8%) 10.9% 14.3% 15.6%

72'226.0 66'950.0 67'569.0 73'914.3 3.3x 3.5x 2.9x 2.6x 33'421.0 27'133.0 28'726.6 33'552.1 7.1x 8.7x 6.7x 5.7x 3.61 1.83 2.53 3.05 17.9x 11.7x 12.9x 10.7x 0.7% 6.8% (12.1%) 8.0% 40.5% 42.5% 45.4%

10'891.0 10'891.0 11'064.4 11'619.3 1.9x 1.9x 1.6x 1.5x 1'223.0 1'223.0 1'221.2 1'417.8 16.7x 16.7x 14.8x 12.3x 0.02 -0.02 0.06 0.07 9.1x 7.0x (11.4%) (55.7%) (23.3%) 11.2% 11.0% 12.2%

2'848.1 2'028.1 4.1x 6.7x 1'426.1 673.9 8.2x 17.4x 2.19 13.3x 18.5% 28.0% 38.9% 47.8% 38.5% -

31'618.0 31'618.0 33'840.4 35'525.1 2.2x 2.2x 1.8x 1.7x 8'122.0 8'122.0 9'266.4 10'563.3 8.5x 8.5x 6.7x 5.7x 1.26 0.40 1.21 1.45 37.8x 12.0x 12.4x 10.4x (6.7%) 3.5% (30.3%) (5.7%) 25.7% 27.4% 29.7%

39.1% 28.0% 1.018x 0.808x 20.380x

157.9% 60.3% 5.109x 4.283x 2.479x

43.0% 29.7% 1.308x 1.120x 44.266x

103.8% 50.9% 9.267x 8.867x 1.637x

8.3% 7.2% 0.302x -0.446x 62.969x

38.4% 26.7% 2.101x 1.857x 20.458x

BBB26.09.2011 -

-

A+ 15.11.2010 (P)A1 15.11.2010

-

-

BBB+ *29.11.2012 -

28'761.0 28'761.0 34'519.9 36'176.5 2.0x 2.0x 1.5x 1.4x 7'682.0 7'682.0 9'657.0 10'177.3 7.4x 7.4x 5.3x 5.1x 2.59 -1.13 2.17 2.61 9.8x 11.4x 9.5x (5.9%) 13.5% (32.5%) (5.8%) 26.7% 28.0% 28.1%

3'001

6'154

324'174 4'631.7 (32.9) 1'058.2

12/2012 39.90 10.01.2013 24.10 23.04.2013 9'034'012

RIO TINTO LTD

12/2012 264.00 27.04.2012 111.30 23.04.2013 693'255

5'023.0 109.0 1'037.0

12'065.0 12'065.0 12'301.2 12'832.7 2.8x 2.8x 2.5x 2.5x 4'932.0 4'932.0 5'201.9 5'487.1 6.8x 6.8x 6.0x 5.8x 1.83 1.96 8.8x 8.2x (14.6%) (4.4%) (31.9%) (9.9%) 40.9% 42.3% 42.8%

TECK RESOURCESB

MECHEL

12/2012 69.86 17.09.2012 45.51 04.04.2013 4'623'300

27'631

LFY LTM CY+1 CY+2 LFY LTM CY+1 CY+2 LFY LTM CY+1 CY+2 LFY LTM CY+1 CY+2 LFY LTM CY+1 CY+2 LFY LTM CY+1 CY+2 1 Year 5 Year 1 Year 5 Year LTM CY+1 CY+2

06/2012 39.34 20.02.2013 30.09 12.07.2012 16'783'219

POLYUS GOLD OJSC

12/2012 72.30 14.02.2013 48.37 30.08.2012 6'203'716

49'828

14'926

86'882

9'870.1 25.3 362.3 295.0

7'195.0 176.0 3'267.0

26'819.0 11'156.0 7'320.0

10'788

80'872

13'839

11'546

19'514

119'939

1'614.0 1'614.0 1'621.9 1'995.0 1.6x 1.6x 1.5x 1.2x 776.0 776.0 182.5 418.0 3.2x 3.2x 13.1x 5.7x 0.36 -1.08 0.05 0.26 11.4x 90.8x 15.5x (19.0%) (1.6%) 89.7% (2.5%) 48.1% 11.2% 21.0%

9'328.0 9'328.0 9'462.2 10'023.3 0.8x 0.8x 0.6x 0.6x 1'218.0 1'218.0 1'317.7 1'485.8 6.1x 6.1x 4.6x 3.9x -0.01 0.00 0.02 57.2x 12.7x 0.2% 2.6% (2.7%) (12.0%) 13.1% 13.9% 14.8%

14'103.7 14'103.7 14'606.9 15'369.4 1.0x 1.0x 0.7x 0.7x 2'127.4 2'127.4 2'252.8 2'403.5 6.7x 6.7x 4.8x 4.3x 0.85 1.00 1.10 9.5x 8.2x 7.4x (10.8%) 17.8% (40.6%) (10.3%) 15.1% 15.4% 15.6%

27'593.0 27'342.0 32'481.6 37'931.1 3.9x 3.9x 2.5x 2.2x 7'300.0 5'736.0 6'759.4 8'936.5 14.6x 18.6x 12.0x 9.2x 6.85 2.40 5.24 8.48 50.1x 50.0x 22.9x 14.2x (16.7%) 0.9% (36.9%) (13.0%) 21.0% 20.8% 23.6%

12'156.6 12'156.6 12'518.1 13'450.3 1.3x 1.3x 1.1x 1.0x 1'900.5 1'900.5 2'044.6 2'322.0 8.2x 8.2x 6.7x 5.8x 0.10 0.15 0.18 17.3x 11.5x 9.4x 3.6% 6.9% (15.7%) (11.0%) 15.6% 16.3% 17.3%

11'274.9 11'274.9 11'482.4 11'466.8 1.1x 1.1x 1.0x 1.0x 462.4 462.4 1'538.3 1'510.4 27.6x 27.6x 7.4x 7.4x -3.93 (0.62) 0.11 33.7x (10.1%) 9.2% (81.2%) (22.8%) 4.1% 13.4% 13.2%

10'343.0 10'126.0 9'828.8 10'752.2 2.1x 2.1x 2.0x 1.8x 3'736.0 3'508.0 3'245.5 3'945.0 5.7x 6.0x 6.1x 5.0x 2.59 2.33 2.14 2.79 11.0x 11.0x 12.0x 9.2x (10.2%) 9.2% (30.4%) 5.7% 34.6% 33.0% 36.7%

50'967.0 50'967.0 55'585.9 61'445.4 3.1x 3.1x 2.2x 1.9x 15'486.0 15'486.0 21'006.8 23'251.3 10.2x 10.2x 5.7x 5.0x 4.06 -1.63 5.72 6.62 9.8x 8.5x (15.8%) 11.2% (41.1%) 8.1% 30.4% 37.8% 37.8%

29.6% 21.1% 0.948x 0.543x 17.244x

40.0% 28.3% 3.175x 2.827x 5.462x

79.4% 44.2% 2.684x 1.861x 4.825x

7.2% 6.4% 0.720x 0.447x 21.283x

41.6% 29.5% 2.437x 1.880x 27.760x

313.1% 73.6% 21.346x 20.708x 0.691x

40.4% 28.6% 2.094x 1.253x 6.026x

57.2% 31.6% 1.732x 1.259x 14.848x

-

NR 20.01.2010 -

BB+ 21.06.2012 Ba1 07.06.2012

-

BBB23.07.2008 -

-

BBB 16.04.2010 Baa2 17.11.2010

A18.04.2011 -

Leverage/Coverage Ratios Total Debt / Equity % Total Debt / Capital % Total Debt / EBITDA Net Debt / EBITDA EBITDA / Int. Expense

44.5% 27.7% 2.182x 0.998x 7.080x

Credit Ratings S&P LT Credit Rating S&P LT Credit Rating Date Moody's LT Credit Rating Moody's LT Credit Rating Date

BBB 04.04.2013 Baa1 23.02.2009

Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: info@qmsadv.com |


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