5 April 2024
Steppe Cement Ltd
("Steppe Cement" or the "Company")
Trading Update for the Quarter ended 31 March 2024
The Company provides the following trading update for the first quarter ended 31 March 2024 ("Q1 2024"). All numbers referenced below are unaudited.
Company Highlights
· In Q1 2024, Steppe Cement sold 175,383 tonnes of cement for KZT 3,779 million (approximately USD 8.4 million, compared with 214,832 tonnes for KZT 4,938 million (approximately USD 10.8 million) in Q1 2023 (decreases of 18% and 23%, respectively).
· The average price (excluding VAT) received by Steppe for delivered cement in Q1 2024 was KZT 21,545 (approximately USD 48) per tonne compared with KZT 22,985 (approximately USD 51) per tonne in Q1 2023 (a decrease of 6%). For the first 3 months of 2024, the ex-factory price stood at KZT 18,835 (approximately USD 42) per tonne, a decrease of 2% from KZT 19,249 (approximately USD 42) per tonne, the corresponding price in 2023.
· Steppe Cement's market share decreased to 11.5% in the first quarter of 2024 compared with 12.7% in the first quarter of 2023.
· Transportation costs have increased significantly and shipments to the southern region of Kazakhstan result in low margins. The cement market in winter is comparatively small in the northern regions of Kazakhstan compared with the summer season, and therefore the Company, which has been operating at full efficiency over the quarter, has chosen to build up clinker inventory in preparation of the summer season, rather than make sales at depressed prices.
· Production of clinker has increased by 25% compared with Q1 2023 and therefore the Company is well positioned to take advantage of the high season.
Market overview
· For the first quarter of 2024, 1.69 million tonnes of cement were sold in Kazakhstan, a decrease of 12% compared to Q1 2023.
· Cement exports by Kazakhstan decreased by 6% compared to Q1 2023, primarily due to reduced exports to Uzbekistan.
· Imports to Kazakhstan were stable at 4% of the market, with the majority of those imports coming from Russia.
The Company currently estimates Kazakhstan's cement market demand for 2024 to be approximately 11 million tonnes per annum, 5% lower than in 2023.
FX conversions are based on the average exchange rate for the quarter ended 31 March 2024 of USD:KZT of 450.3 vs 454.9 in 2023.
For further information, please contact:
| Steppe Cement Limited | www.steppecement.com |
| Javier del Ser Pérez, Chief Executive Officer | Tel: +(603) 2166 0361 |
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| Strand Hanson Limited (Nominated & Financial Adviser and Broker) | |
| James Spinney / Robert Collins / Ritchie Balmer | Tel: +44 20 7409 3494 |
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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.
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