Stock Review: Chelyabinsk Metallurgical Plant increases after finding support 12 December 2019

STOCK REVIEW

Dateline: Friday December 13, 2019

CheIyabinsk MetaIIurgicaI PIant OAO (MICEX:CHMK), Russia's 5th largest Iron/Steel company by market cap, has increased 0.8% after hitting the lower Bollinger Band twice in the last ten days. This is a bullish signal. The lower Bollinger Band marks the trajectory of support on a stock price. Chelyabinsk Metallurgical Plant's stock price has increased RUB20.0 (0.8%) from its previous trading session to close at RUB2,570.0. Compared with the MOEX Russia Index which rose 30.6 points (1%) in the day, the relative price change was -0.2%. There were 74 shares worth RUB190,180 (US$3,006) traded today. The volume was 0.1 times the average daily trading volume of 787 shares.

Stock Summary

CurrencyRussian Ruble (RUB) 1 USD = 63.26 RUB
LastRUB2,570.0
Shares Outstanding3,160,000
SectorIron/Steel
Market CapRUB8.1 billion (US$128.4 million)
Week's Range(RUB)2,500.00 - 2,615.00
52-Week Range(RUB)2,300.00 - 3,370.00
Ave Daily Volume787

INDEX

SECTION 1 THE PAST WEEK

SECTION 2 TODAY'S BULLISH SIGNALS

SECTION 3 TODAY'S BEARISH SIGNALS

SECTION 4 ONGOING BULLISH PARAMETERS

SECTION 5 ONGOING BEARISH PARAMETERS

SECTION 6 PRICE VOLUME DYNAMICS (PAST QUARTER)

SECTION 7 PERIOD-BASED SHAREHOLDER RETURNS

SECTION 8 CHELYABINSK METALLURGICAL PLANT PEER GROUP ANALYSIS & RANKING

SECTION 9 STOCK NEWS

SECTION 10 CHELYABINSK METALLURGICAL PLANT FINANCIALS

SECTION 11 CHELYABINSK METALLURGICAL PLANT BOARD OF DIRECTORS

SECTION 12 CORPORATE PROFILE

SECTION 13 GLOSSARY

SECTION 1 THE PAST WEEK

Snapshot: Chelyabinsk Metallurgical Plant stock was up RUB55.0 or 2.2% in the past week. Volume in the week equalled average trading of 3,935 shares. It outperformed the MICEX Index in 3 out of 5 days.

DayChelyabinsk Metallurgical PlantClose price [RUB]Price change %Relative change %Comment
WednesdayInches higher, resistance at 12-day EMA2,550.01.80.9Top Rise
TuesdayDecreases, 4 days' volume in a day2,505.0-0.20.2Steepest Fall; VI*=4.2
MondayTrailing 82% of stocks2,510.00-0.7Price fall on falling relative strength
FridayDecreases, drops 2.9% for week2,510.0-0.2-1.2Price fall on slipping relative strength
ThursdayIncreases2,515.00.20.4Oversold: close to 14-day low

[Volume Index (VI); 1 is average]

SECTION 2 TODAY'S BULLISH SIGNALS

2.1 Undervaluation

Price to Book

- The Price to Book of 0.2 lower than average of 3.3 for the Iron/Steel sector and 0.9 for the Total Russian Market.

2.2 Other Bullish Signals

- Interest cover defined by EBIT/I is 61.1 times. This indicates it is less leveraged.

2.3 Oversold/Bullish Signals:

- The Money Flow Index [MFI] is 15 suggesting an oversold 14-day trend, being under 20. The Money Ratio of 0.2 suggests positive money flow was 0.2 times negative money flow.

- The Stochastic indicator of 16.0 has pierced the oversold line of 20; this indicates the price is close to its 14-day low and is likely to revert to an uptrend.

SECTION 3 TODAY'S BEARISH SIGNALS

3.1 Downtrend

Price/Moving Average Price and MACD:

- The Price/MAP of 0.92 for CHMK is lower than the Price/MAP for the MOEX Russia Index of 0.94.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 2,561.63 minus the 26-day EMA of 2,597.88 is negative, suggesting a bearish signal.

- The price to 50-day EMAP ratio is 1.0. In the past 50 days this ratio has been under 1.0 just six times suggesting a support level. The 50-day EMAP has decreased to RUB2,645.48. A decrease is another bearish indicator.

- The price to 200-day MAP ratio is 0.92, a bearish indicator. In the past 200 days this ratio has been under 0.92, just six times suggesting a support level. The stock is trading below both its MAPs and the 50-day MAP of RUB2,666.28 is lower than the 200-day MAP of RUB2,808.08, a bearish indicator. The 200-day MAP has decreased to RUB2,808.08. A decrease is another bearish indicator.

Past Quarter:

- Falls to Rises: In the last three months the number of falls outnumbered rises 34:23 or 1.48:1.

- In the last 21 trading sessions there has been a net decline of 4.3%; the stock has retreated eleven times and the biggest one day decline was 3.5% on December 04.

Slipping Relative Strength:

- The stock has a 6-month relative strength of 23 in the Russian market indicating it is trailing 77% of the market.

- Also, the relative strength percentile is slipping at 23 for 6 months, 18 for 3 months and 13 for 1 month.

3.2 Low Price Performance Indicator and rank of Chelyabinsk Metallurgical Plant in the Russian market:

DescriptionCHMK ValueRank In Market
% Prem to Vol Wtd Price0.5In Bottom Quartile

3.3 Other Bearish Signals

- Total Liabilities/ EBITDA of 18.9 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.

- Return on Assets of 3.7% versus sector average of 20.8% and market average of 6.3%.

SECTION 4 ONGOING BULLISH PARAMETERS

4.1 Moving Annual Return (Past 5 years)

Based on a dynamic start date of 5 years ago, the real rate of return has averaged 55.9%. The Moving Annual Return has been positive in 3 of the last 5 years. An investment a year ago in CHMK would have produced a return of 3.2%.

CHMKClose (RUB)Annual Return %
Dec 122,5703.2
1 Yr ago2,490(22.4)
2 Yrs ago3,210(18.5)
3 Yrs ago3,9403.7
4 Yrs ago3,800313.5

Close 5 years ago RUB919.0

4.2 Present Value of RUB1,000 invested 5 years ago

- The present value of RUB1,000 (PV1000) invested five years ago in Chelyabinsk Metallurgical Plant is RUB2,797, for a capital gain of RUB1,797.

- 5 years Multiplier in RUB = 2.797x

- Annualized Total Shareholder Returns (TSR) in RUB = 22.8%

4.3 Present Value of USD1,000 invested 5 years ago

- The present value of USD1,000 (PV1000) invested five years ago in Chelyabinsk Metallurgical Plant is $US1,687, for a capital gain of $US687.

- 5 years ago USD 1 equalled RUB 38.1679

- 5 years Multiplier in USD = 1.687x

- Annualized Total Shareholder Returns (TSR) in USD = 11.0%

- The average annual compound return on the share price in the last 5 years was 22.8%, exceeding the average annual compound return on the MOEX Russia Index of 15.3%.

4.4 High Performance Indicators and rank in the Russian market:

DescriptionValueRank In Market
Price to Book Value0.2In Top Quartile

4.5 Declining Days Untraded

Past four years, 12 months ended Dec 12

YearDays Untraded
201910
201810
20179
201622

Liquidity has improved from 22 Days Untraded four years ago to 10 days in the past year.

SECTION 5 ONGOING BEARISH PARAMETERS

5.1 MCap: 4-Year Decrease

In the past 4 years Market Capitalization has decreased by RUB3.9 billion from RUB12 billion to RUB8.1 billion. Based on a dynamic start date of 4 years ago, there have been declines in MCap in 2 out of 4 years.

PriceMCap (RUB M)MCap (US$ M)
LastRUB2,570.08,121.2128.4
1 Year agoRUB2,490.07,868.4118.7
2 Years agoRUB3,210.010,143.6171.4
3 Years agoRUB3,940.012,450.4196.7
4 Years agoRUB3,800.012,015.5174.2

5.2 Low Performance Indicators and rank in the Russian market:

DescriptionValueRank In Market
% Prem To Vol Wtd Price0.5In Bottom Quartile
Relative Strength (6Mo)*23In Bottom Quartile

* Relative Strength: Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

5.3 Declining ADVT past five years

Avg. Daily Volume Traded 12 months ended Dec 12, thousand shares

YearADVT
20190.79
20180.15
20170.27
20160.24
20150.91

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 13.9% to 787 shares.

5.4 Declining VWAP

Past five years, 12 months ended Dec 12 (RUB)

YearHigh PriceVWAPLow Price
20193370.02741.672300.0
20183535.02907.232480.0
20164260.03442.432445.0
20155880.02989.42588.0

In the past five years Volume Weighted Average Price (VWAP) has decreased by 8.3% to RUB2,741.67. .

5.5 Declining Average Daily Turnover

Past five years, 12 months ended Dec 12 (RUB thousand)

YearAverage Daily Turnover
2019417.5
2018419.0
2017641.8
2016751.7
20152711.1

In the past five years, average daily share turnover has decreased 84.6% to RUB417,545 (US$6,600). This suggests decreased liquidity.

5.6 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]

- Positive net income.

- Improvement in long-term debt to total assets from 0.3 to 0.4.

- Improvement in current ratio from 0.8 to 1.1.

SECTION 6 PRICE VOLUME DYNAMICS (PAST QUARTER)

6.1 The Best 3 weeks in the past quarter

Mon-FriChange %MICEX Index Change %RPC %Vol Ind [1 is avg]
Sep 09-132.9-0.43.30.1
Nov 04-080.61.5-0.90.3
Nov 11-150.6-1.21.80.2

In the past quarter the week beginning Monday September 09 saw the highest weekly rise of 2.9% for a relative price increase of 3.3%.

6.2 The Worst 3 weeks in the past quarter

Mon-FriChange %MICEX Index Change %RPC %Vol Ind [1 is avg]
Dec 02-06-2.9-0.3-2.60.2
Nov 25-29-2.1-0.4-1.70.2
Sep 23-27-2-0.4-1.50.2

In the past quarter the steepest fall of 2.9% took place in the week beginning Monday December 02.

6.3 Stock Trading Volume and Turnover in the past 3 months

TurnoverUS$534,211
Avg daily turnoverUS$8,480
Volume12,882
Avg daily volume204

6.4 Period-based Price Change %

3-Year price change for CHMK was -34.8%. Compared with the MICEX Index which rose 35.6% in the 3 years, the relative price change was -70.4%.

Price Change %QuarterYear3 Years
CHMK-8.53.2-34.8
Iron/Steel-7.8-10.1-30.6
MICEX Index6.824.835.6

6.5 Beta & Standard Deviation

The Beta of this stock is 0.2. A Beta lower than 1 suggests this is a lower risk, lower return stock with volatility less than that of the market.

SD is a statistical measure of deviation from the mean. The SD of 1.7% gives it a percentile rank of 36 meaning that 36% of stocks in the Russian market are less volatile than this stock.

StockInterpretation
Beta0.2Lower risk, lower return
Standard Deviation1.7Less volatile

SECTION 7 PERIOD-BASED SHAREHOLDER RETURNS

7.1 Past Quarter

The stock fell 34 times (53.1% of the time), rose 23 times (35.9% of the time), was unchanged 6 times (9.4% of the time) and was untraded 1 time (1.6% of the time). The aggregate volume was 0.3 times average trading of 787 shares. The value of RUB1,000 invested 3 months ago is RUB915 [vs RUB1,077 for the MOEX Russia Index] for a capital loss of RUB85.

7.2 Past Year

Chelyabinsk Metallurgical Plant strengthens 3% in past year

CheIyabinsk MetaIIurgicaI PIant OAO (MICEX:CHMK), strengthened RUB80.0 (or 3.2%) in the past year to close at RUB2,570.0 today. Compared with the MOEX Russia Index which has risen 24.8% over the same period, this is a relative price change of -21.6%.

The stock fell 122 times (48.6% of the time), rose 95 times (37.8% of the time), was unchanged 24 times (9.6% of the time) and was untraded 10 times (4% of the time). The value of RUB1,000 invested a year ago is RUB1,032 [vs RUB1,259 for the MOEX Russia Index] for a capital gain of RUB32.

7.3 Present Value of RUB1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]

PVRUB1,0003 mo ago1 yr ago3 yrs ago
CHMK.MICEXRUB915RUB1,032RUB652
Iron/Steel sectorRUB922RUB902RUB696
MOEX Russia IndexRUB1,077RUB1,259RUB1,343

7.4 Annualised Period-based Total Shareholder Returns [TSR %]

TSR %1 yr3 yrs5 yrs10 yrs
CHMK.MICEX3.2-13.222.8-6.4

SECTION 8 CHELYABINSK METALLURGICAL PLANT PEER GROUP ANALYSIS & RANKING

8.1 BuySellSignals Fundamentals Valuation Ranking: Chelyabinsk Metallurgical Plant vs Russian Market

Out of 135 stocks in the Russian Market, Chelyabinsk Metallurgical Plant is ranked second by Price/Net Tangible Assets, Thirty-second by Premium to 52-Wk Low, Sixty-first by Net Profit and Eighty-ninth by ROE.

Russian AvgCHMKRankRank 1Rank 2Rank 3Lowest Rank
Price/Net Tangible Assets0.9x0.2x20.1x TRNFP0.2x CHMK0.3x MRKZ-
Premium to 52-Wk Low (%)29.211.7320.4 SVAV1.2 RLMN2.01 ZVEZ768.3 PAZA
Net Profit121 billion5.4 B611,456.3 B GAZP832.9 B SBER619.2 B LKOH(60.7 B) UTAR
ROE (%)14.312.289 125.2 ALNU97.2 RTSB-
ROA (%)6.33.79463.4 ALNU34.9 CHMF22.6 NLMK0.02 HIMCP
Discount to 52-Wk High (%)3.9923.79594.5 TANL80.5 KLSB72.8 RUSI0.7 RZSB
EBITDA Margin16.34.610583.2 ODVA59.7 RUSI58.6 MOEX(63.5) UTAR
Total Debt/Equity (the lower the better)0.3x1.7x147WTCMPWTCMODVA11.6x AFKS

Negative values are shown in brackets.

8.2 Global Rank [out of 47,075 stocks] and Rank of Chelyabinsk Metallurgical Plant in the Europe Region [out of 8,031 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)128.4M20,2753,410
Total Assets (US$)2.3B6,5251,242
Revenue (US$)1.9B4,591895
Net Profit (US$)84.9M6,0051,196
Return on Equity %12.29,8191,912
Net Profit Margin %4.518,5822,994
Price to Book0.21,678263
PV1000 (1Year) USD*1,08719,4713,916
US$* Change (1Year) %5.518,0583,679

* 1 year ago USD 1 = RUB 66.3

Dec 12, 2019: USD 1 equals RUB 63.26

8.3 Rank of Chelyabinsk Metallurgical Plant in the Total Russian Market [out of 193 stocks] and in the Iron/Steel sector [out of 10 stocks]

DescriptionValueIn Total Russian MarketIn Iron/Steel sector
MCap (RUB)8.1B986
Total Assets (RUB)146.4B505
Revenue (RUB)118.6B425
Net Profit (RUB)5.4B535
Return on Equity %12.2634
Net Profit Margin %4.5635
Price to Book0.2252
PV1000 (1Year) RUB1,0321205

8.4 Independent Ratings

+ BuySellSignals/News Bites:

CheIyabinsk MetaIIurgicaI PIant OAO is placed 105/160 in BuySellSignals News Bites' ranking of Russian performers in the past year, a percentile ranking of 35.

8.5 Long-Term Fundamental Ranking: 4 out of 5 [5 is best]

Chelyabinsk Metallurgical Plant is ranked number 5 out of 10 listed iron/steel companies in the Russia with a market capitalization of RUB8.1 billion (US$128.4 million).

It has a moderate relative ROE of 12.2% and ROA of 3.7%.

Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

SECTION 9 STOCK NEWS

9.1 Chelyabinsk Metallurgical Plant Corporate Wires

9.1.1 Press Releases

January 22: Chelyabinsk Metallurgical Plant: Mechel Completes Restructuring Syndicated Pre-Export Loan

Moscow, Russia - January 22, 2019 - Mechel PAO (MOEX: MTLR; NYSE: MTL), a leading Russian mining and metals company, reports refinancing its one-billion-dollar syndicated pre-export facility with a pool of international lenders.

The restructuring became possible by a credit line in euro granted by VTB Bank with maturity in April 2022. The grace period on the body of the debt is set until April 2020.

Debt buyback from lenders yielded Mechel financial revenue totaling about 13 billion rubles.

"Refinancing the syndicated loan enabled us to reduce the share of the Group's unrestructured debt from 22% to 8%, decrease the number of foreign lenders in our overall debt portfolio, synchronize the loan's conditions and debt repayment schedule with current conditions of our loans lent by Russian banks, as well as reduce borrowing costs," Mechel PAO's Chief Financial Officer Nelli Galeyeva noted.

Source: Company Website

December 20 2018: Mechel Prolongs Coal Supply Contract with China's Jidong Cement

Mechel PAO (MOEX: MTLR; NYSE: MTL), one of the leading Russian mining and metals companies, reports prolonging the contract for coal supply with China's Jidong Cement, one of the world's top cement producers, until the end of 2019.

According to the agreement, during this year Mechel will supply its Chinese partners up to two million tonnes of thermal coal mined at the company's South Yakutia facilities, Elgaugol OOO and Yakutugol Holding Company AO. Monthly supplies will vary from 100,000 to 150,000 tonnes of coal products. Prices will be adjusted on a monthly basis following negotiations and on the basis of index rates.

"This is a third major contract signed by Mechel and Jidong Cement. I am sure that our ties will continue to develop in a constructive manner in the future. It is also important to note that Jidong Cement is a key customer of Elga's thermal coal in Asia - in 2017 we supplied our Chinese partners with 1.9 million tonnes and another 1.4 million in 2018. In 2019 we plan to export thermal coal from Elga in comparable volumes," Mechel Mining Management OOO's Chief Executive Officer Pavel Shtark commented.

Source: Company Website

December 19 2018: Mechel Buys 150 New Railcars to Transport Coal

Mechel PAO (MOEX: MTLR, NYSE: MTL), one of the leading Russian mining and metals companies, reports acquiring some 150 railcars in November-December for a total of 467 million rubles as part of the transport fleet upgrade program.

Most gondola railcars were produced by Altaivagon OJSC and RM Rail Ruzhimmash and both bought to own and leased.

Currently Mechel Group's transport operator Mecheltrans OOO manages approximately 11,000 train vehicle units. In 2019 the company plans to acquire some 1,000 new gondola cars.

"Over the past four years, some 150,000 gondola cars were scrapped in the Russian market due to expired life, which is practically a quarter of the entire fleet volume. The shortage in all-purpose vehicle transport segment is still being felt. As such, in order to improve the situation with transporting Mechel Group's coal products we intend to dramatically expand our fleet. We are currently in active talks with wagonbuilders and leasing companies," Mecheltrans Management OOO's Chief Executive Officer Alexey Lebedev said.

Source: Company Website

December 18 2018: Mechel Expands Long-Term Coal Supply Agreement with Japan's Itochu Corporation

Mechel PAO (MOEX: MTLR; NYSE: MTL), a leading Russian mining and metals company, reports expansion of the sales agreement with a major Japanese universal trading company Itochu Corporation.

The agreement stipulates that Mechel and Itochu Corporation agreed on potential sales of up to 800,000 tonnes of coking and thermal coal between December 2018 and March 2020. The coal will be shipped from Mechel's Southern Kuzbass Coal Company and Elgaugol. The price will be determined by mutual agreement. Japan's major consumers and Asian steelmaking and power facilities will be the end consumers of Mechel's products.

"Our longstanding ties with Itochu Corporation are stepping up to a new level. Expanding our cooperation will help us consolidate our position in the Asia Pacific market. We are glad that Mechel's coal won positive appraisal from our Japanese partners, and we will ensure its high quality in the future as well," Mechel Mining Management Company OOO's Chief Executive Officer Pavel Shtark commented.

Source: Company Website

SECTION 10 CHELYABINSK METALLURGICAL PLANT FINANCIALS

10.1 Annual Report: Key Parameters

FY2017 Annual Report: Chelyabinsk Metallurgical Plant profits hit by 64% fall


Release Date: March 09, 2018

Chelyabinsk Metallurgical Plant (MICEX:CHMK) reported net profit for the year-ended 31 December 2017 of RUB5.4b ($US93.7m), down 63.9% from RUB15.0b ($US244m) in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Sales revenue up 10.7% from RUB107.1b ($US1.7b) to RUB118.6b ($US2.1b)

- Sales and marketing expenses to Sales down from 8.4% to 7.9%

- Debt to Equity down 10.3% from 1.9 to 1.7

- Current ratio up 30.9% from 0.8 to 1.1

- Retained earnings to total assets up from 12.7% to 15.5%

- Long-term investments to Total Assets up from 28.2% to 31%

- Total current assets to Total Assets up from 28.8% to 30.9%

- Current Debtors to Total Assets up from 22.4% to 22.9%

Unfavourable Changes:

- Net profit slumps 63.9% from RUB15.0b ($US244.2m) to RUB5.4b ($US93.7m)

- EBIT Margin down from 17.0% to 4.6%

- EBIT to total assets down from 13.4% to 3.7%

- Profit before tax to Sales down from 14% to 4.5%

- Total non-current assets to Total Assets down from 71.2% to 69.1%

- Fixed Assets to Total Assets down from 40.6% to 35.7%

Note:

- Total revenue to total assets steady at 0.8

- Total liabilities to Total assets steady at 0.7

Annual Report [Year-on-year comparison: 2017 vs 2016]

Company Name : CheIyabinsk MetaIIurgicaI PIant OAO (CHMK)
December 312017201620172016Change
DescriptionRUB mRUB m$US m$US m(%)
Sales Revenue118,556.9107,119.22,059.31,749.1Up 10.7
EBITDA5,403.318,180.793.9296.9Down 70.3
EBIT5,401.118,17993.8296.8Down 70.3
Interest88.53,211.91.552.4Down 97.2
Pre-Tax Profit/(Loss)5,312.614,967.192.3244.4Down 64.5
Profit/(Loss) after Tax5,391.914,955.893.7244.2Slumps 63.9
Current Assets45,255.239,166.2786.1639.5Up 15.5
Current Liabilities42,758.748,173.2742.7786.6Down 11.2
Shareholders' Funds44,158.738,640.8767630.9Up 14.3
Total Liabilities102,237.497,150.31,775.91,586.3Up 5.2
Total Assets146,396.1135,791.12,542.92,217.3Up 7.8
Current Debt20,435.729,075.3355474.8Down 29.7
Non-Current Debt56,346.845,789978.7747.7Up 23.1
Total Debt76,782.574,864.31,333.71,222.4Up 2.6
Net Assets44,158.738,640.8767630.9Up 14.3
Net Tangible Assets44,155.238,636.8767630.9Up 14.3

Year-on-year comparison of Performance Ratios

December 3120172016Change (%)
Return on Equity (%)12.238.7Down 68.5
Return on Assets (%)3.711Down 66.4
Total debt to net tangible assets (%)173.9193.8Down 10.3
Debt/Equity1.71.9Down 10.3
Total Liabilities/Total Assets (Down 2.8% from 0.72 to 0.7)0.70.7Down 2.8
Current Ratio1.10.8Up 30.9
Common Size Ratios by Assets %
Total non-current assets to Total Assets 69.1 71.2 Down 2.9
Fixed Assets to Total Assets 35.7 40.6 Down 12.0
Long-term investments to Total Assets 31.0 28.2 Up 10.1
Total current assets to Total Assets 30.9 28.8 Up 7.1
Current Debtors to Total Assets 22.9 22.4 Up 2.4
Common Size Ratios by Sales %
Sales and marketing expenses to Sales 7.9 8.4 Down 5.9
Profit before tax to Sales 4.5 14.0 Down 67.8

Currency Conversion (December 31, 2017): $US1 = RUB57.57

Currency Conversion (December 31, 2016): $US1 = RUB61.24

SECTION 11 CHELYABINSK METALLURGICAL PLANT BOARD OF DIRECTORS

11.1 Board of Directors and years since appointment

NameDesignationSince Appointment
Igor V. ZyuzinChairman, Director11 Yrs, 5 Mos
Sergey Evstafevich MaIyshevManaging Director-

11.2 Profiles

Igor V. Zyuzin

Chairman & Director

Igor V. Zyuzin has been the Chairman of Mechel OAO's Board of Directors since July 2010.

Mr. Zyuzin has also served as a member of the Board of Directors of Mechel Mining since April 2008 and Chairman of the Management Board and Chief Executive Officer of Mechel Mining since July 2011. From April 2008 to June 2011, Mr. Zyuzin served as Chairman of the Board of Directors of Mechel Mining.

He was Mechel OAO's Chief Executive Officer from December 2006 to July 2010 and Chairman of Mechel OAO's Management Board from September 2007 to July 2010. Mr. Zyuzin served as the Chairman of the Board of Directors from March 2003, when Mechel was founded, to December 2006 and has been a member of the Board of Directors since that time.

He has also served as the Chairman of the Board of Directors of Southern Kuzbass Coal Company, a position he has held since May 1999, and has been a member of the Board of Directors of Chelyabinsk Metallurgical Plant since 2001 and a member of the Board of Directors of Yakutugol since October 2007.

Since October 1993 he served as Director of Kuzbasskaya Central Washing Plant OAO.

In 1987-1989 he worked as a mine overseer. In 1989 Mr. Zyuzin became a section chief and acting chief technology engineer. In 1990 he was appointed deputy director for commerce and external economic activities at the Raspadskaya Mine in Russia's Kemerovo Region.

Mr. Zyuzin has over 25 years of experience in the coal mining industry. He has a degree in technology and complex mechanization of underground mining from the Tula Polytechnic Institute. Mr. Zyuzin also has a degree in mining engineering economics and a Ph.D. in technical sciences relating to coal mining.

Sergey Evstafevich MaIyshev

Managing Director

SECTION 12 CORPORATE PROFILE

12.1 Stock Identifiers

ISIN: RU0007665170

12.2 Contact details

Websitehttp://www.mechel.ru
Physical AddressuI. 2-ya PaveIetskaya 14 CheIyabinsk, 454047 Russia
Phone7-3517-253027
Fax7-3517-210744

12.3 Activities

Chelyabinsk Metallurgical Plant is a Russia-based producer of coking coaI, iron ore, roIIed steeI, etc.

SECTION 13 GLOSSARY

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabiliites (times)

PV1000: Present value of 1000 invested 1 year/'n' years ago

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Created by www.buysellsignals.com