NLMK update mining segment result for January to September 2010
| USD million | Q3'10 | Q2'10 | Change |
| Revenue from external customer | 23 | 25 | -6% |
| Revenue from intersegmental operations | 228 | 237 | -4% |
| Gross profit | 179 | 178 | 1% |
| Operating profit | 163 | 164 | 0% |
USD million
| Jan-Sep'10 | Jan-Sep'09 | Change | |
| Revenue from external customer | 61 | 73 | -17% |
| Revenue from intersegmental operations | 605 | 306 | 97% |
| Gross profit | 433 | 161 | 170% |
| Operating profit | 389 | 121 | 221% |
USD million
NLMK’s Mining segment comprises Stoilensky, Dolomit and Stagdok. These companies mainly supply raw materials to NLMK’s production facilities in Lipetsk and also sell limited volumes outside the Group.
In January to September 2010 Stoilensky, the Group’s key mining asset, produced 9.0 million tonnes of iron ore concentrate up by 12%YoY including 3.0 million tonnes in Q3. The bulk of the Segment’s revenue is generated by intersegmental operations, primarily through sales to the Lipetsk plant.
In Q3 2010 prices for iron ore reduced slightly QoQ resulting in a marginal decline in revenue. The profitability of the segment remained broadly flat due to cost management efficiency.
The YoY improvement of the segment January to September 2010 financials was factored by higher 2010 sales volumes and prices for iron ore. Operating profit of the reporting period increased by 3.2 times, operating profit margin amounted to 58%, and 65% in Q3.
