Mechel PAO announces financial results for the full year 2016

Mechel PAO’s Chief Executive Officer Oleg Korzhov commented on the 2016 results:

“Last year, markets of steel and steelmaking commodities have repeatedly surprised us. The year began with a dynamic surge of steel prices, then the coal market began its recovery which became a dramatic hike by the end of summer. By December, coal prices approached historical highs.

“As a result, with stable production and sales volumes the Group showed an improvement of all financial results by the year’s end. Our revenue went up by 9% year-on-year, EBITDA was up by 45% and EBITDA margin reached 24%. It should be noted separately that for the first time since 2011 the Group earned a net profit, attributable to shareholders of Mechel PAO, of 7.1 bln rubles.

“Signing debt restructuring agreements with Russian state banks, which account for 71% of the company’s debt portfolio, was a prime achievement. Restructuring conditions put off the maturity of our main body of debt until 2020 with following amortization until April 2022. Loan rates were reconsidered and tied to the key interest rate of the Central Bank of the Russian Federation. Besides, the new agreements provide for a partial interest capitalization, which brings down our current debt service payments.

“The Group’s capital expenditure for 2017 is set at 12.5 bln rubles.

“All this considered, the cashflow generated by the Group enables us to service our debt, operate successfully and, if the current favorable market situation holds, begin to decrease our debt burden.”

Consolidated Results For The Full Year 2016

Mln rubles	FY 2016		FY 2015		%		4Q’16		3Q’16		%
Revenue from external customers	276,009		253,141		9	%	79,659		66,153		20	%
Operating profit	42,690		24,252		76	%	13,929		11,561		20	%
EBITDA	66,164		45,730		45	%	24,593		15,850		55	%
EBITDA, margin	24	%	18	%			31	%	24	%
Net profit (loss) attributable to shareholders of Mechel PAO	7,126		(115,163	)			1,579		(2,757	)

^{___________________________}

^* EBITDA - Adjusted EBITDA. Please find the calculation of the Adjusted EBITDA and other non-IFRS measures used here and hereafter in Attachment A.

Mining Segment

Mechel Mining Management OOO’s Chief Executive Officer Pavel Shtark noted:

“Last year, the Group’s mining division significantly improved its financial results as the global coking coal market rapidly recovered. The surge in metallurgical coal prices which began in the middle of the year halted only in mid-December. Prices for high-quality coking coal topped $300 per tonne. This means that prices have nearly quadrupled over the year, rising from historical lows to peak levels last seen in 2011.

“In order to use this favorable market situation to the fullest, the division re-oriented its sales of coking and other metallurgical coals to focus on more profitable Asian markets. If in 1Q2016 72% of our coking coal concentrate went to export, in 4Q2016 exports accounted for 90% of this product’s sales, while total sales of coking coal concentrate in 4Q2016 topped 1Q2016 sales by nearly 10%.

“At the same time, our mining facilities effectively controlled their expenditures and optimized production processes. Last year we invested a lot of work into shifting Yakutugol Holding Company’s Dzhebariki-Haya underground mine to open mining, which is a safer and more profitable mining method. Open mining at Dzhebariki-Haya began in March 2017. At Elga, which is our most promising project, coking coal now accounts for 75% of volumes mined there, which means an increased output of the most profitable product.

“As a result, last year compared to 2015 our revenue from sales to third parties went up by 11%, EBITDA was up by 56% and EBITDA margin to 34%. If we look at the dynamics in the fourth quarter as compared to the third quarter, revenue went up by nearly half, EBITDA grew by 88% and EBITDA margin reached 46%.

“In early 2017, coal markets remain favorable. Despite a persistent slump in coal spot prices, which reached $150-160 per tonne by mid-February, the first quarter’s benchmark was $285 per tonne, which enabled us to continue selling a major part of our coal for high prices. Cataclysmic weather in Australia in the end of the first quarter and at the outset of the second one again hiked coal prices to historical highs. Major Australian mining companies have one by one declared force-majeure, the world’s largest coal terminals have been closed for days, but the worst problem lay in the devastation of the railroad infrastructure. The quarter prices, which have been expected to fix close to the spot prices in March, have not been fixed. Price negotiations have been put on hold until the cyclone’s consequences could be assessed.

“We expect that in 2017 coal mining volumes will remain stable at last year’s level.”

Mln rubles	FY 2016		FY 2015		%		4Q’16		3Q’16		%
Revenue from external customers	89,647		80,632		11	%	29,657		19,931		49	%
Revenue inter-segment	31,907		28,091		14	%	9,426		7,770		21	%
EBITDA	41,884		26,831		56	%	17,905		9,541		88	%
EBITDA, margin	34	%	25	%			46	%	34	%

Steel Segment

Mechel-Steel Management Company OOO’s Chief Executive Officer Andrey Ponomarev noted:

“Last year the division’s financial results showed confident growth. Considering that the division’s overall production and sales volume has slightly changed, the chief factors that had a positive impact on the results were a favorable market situation and optimization of our product range in favor of high-margin products.

“Last year, the situation on the markets for the division’s steel products has largely been positive for our company. Early last year Chinese producers left the billet market, which boosted prices for finished products. Russia’s long products market quickly took on the positive impulse from export quotations. A major rebar shortage on several regional markets also became an additional growth factor. However, as this surge was not supported by end demand, the growth was soon checked, and the downslide persisted until late August. After that prices continued to waver until the end of the year under the influence of various factors, but remained at much higher levels than they had been early in the year.

“The production and sales structure has also changed. The share of semi-finished products like billets and wire rod in our sales continued to decline. Instead we increased sales of high-margin products such as rails and other structural shapes produced by Chelyabinsk Metallurgical Plant’s universal rolling mill. In 2016 the mill produced over 500,000 tonnes of high-quality rolls, including 300,000 tonnes of rails. This year the mill’s load will increase even further, and the mill will master production of new types of profiles, including rails compliant with foreign railroad standards.

“The steel division’s facilities conducted repairs and equipment modernization and mastered new types of products as planned. For example, Chelyabinsk Metallurgical Plant completed capital repairs of its blast furnace #5 as well as repairs of the key equipment of its oxygen converter workshop which accounts for over 70% of all steel made by the plant. Beloretsk Metallurgical Plant mastered production of 12 new types of steel products, including wire used for import substitution, wire ropes and steel ribbons for various industries.

“The chief factor impacting our products’ cost dynamics is the prices for incoming commodities which were particularly volatile last year. However, within the Group this factor was compensated by a high level of vertical integration.

“As a result, last year as compared to 2015, revenue from sales to third parties went up by 11%, EBITDA grew by 35% and EBITDA margin reached 14%. In the fourth quarter compared to the third quarter, revenue went up by 3%, EBITDA grew by 16% and EBITDA margin reached 16%.”

Mln rubles	FY 2016		FY 2015		%		4Q’16		3Q’16		%
Revenue from external customers	161,639		146,032		11	%	42,739		41,296		3	%
Revenue inter-segment	7,254		6,972		4	%	1,958		1,677		17	%
EBITDA	23,172		17,127		35	%	7,327		6,325		16	%
EBITDA, margin	14	%	11	%			16	%	15	%

Power Segment        

Mechel-Energo OOO’s Chief Executive Officer Petr Pashnin noted:

“Last year production and sales of electricity went down due to several factors, including a warmer weather as well as constantly high load of hydroelectric power stations which increased market competition. The decline in sales as well as the growth of tariffs for electric power transmission increased our commercial costs and decreased the division’s financial results.

“In 2016 as compared to 2015, revenue from sales to third parties went down by 7%, EBITDA by 20% and EBITDA margin slumped to 4%. In the fourth quarter compared to the third quarter, revenue went up by 47%. EBITDA demonstrated a major slump as commercial expenditure and production costs went up.”

Mln rubles	FY 2016		FY 2015		%		4Q’16		3Q’16		%
Revenue from external customers	24,723		26,477		-7	%	7,263		4,925		47	%
Revenue inter-segment	15,903		14,990		6	%	4,480		3,524		27	%
EBITDA	1,662		2,090		-20	%	(440	)	88		-600	%
EBITDA, margin	4	%	5	%			-4	%	1	%

 

Mln rubles	31.12.2016		31.12.2015
Interest-bearing loans and borrowings, excluding interest, fines and penalties on overdue amounts	395,571		444,199
Interest payable	16,916		27,269
Non-current interest-bearing loans and borrowings	11,644		4,308
Other non-current financial liabilities	36,197		-
less Cash and cash equivalents	(1,689	)	(3,079	)
Net debt, excluding finance lease liabilities, fines and penalties on overdue amounts	458,639		472,697
Finance lease liabilities, current portion	10,175		13,507
Finance lease liabilities, non-current portion	421		481
Net debt, excluding fines and penalties on overdue amounts	469,235		486,685
Mln rubles	31.12.2016		31.12.2015
Trade and other receivables	19,054		16,013
Inventories	35,227		35,189
Other current assets	6,942		8,191
Income tax receivables	686		603
Trade current assets	61,909		59,996
Trade and other payables	40,985		54,602
Advances received	3,815		3,492
Provisions and other current liabilities	3,515		2,558
Tax payable other than income tax	9,195		8,034
Income tax payable	2.552		5,549
Trade current liabilities	60,062		74,235
Trade working capital	1,847		(14,239	)

EBITDA can be reconciled to our consolidated statement of profit (loss) as follows:

___________________________

** Calculations of Net debt could be differ from indicators calculated in accordance with loan agreements upon dependence on definitions in such agreements.

	Consolidated Results					Mining Segment ***					Steel Segment***					Power Segment***
In millions of Russian rubles	12m 2016		12m 2015			12m 2016		12m 2015			12m 2016		12m 2015			12m 2016		12m 2015
Net profit (loss) attributable to shareholders of Mechel PAO	7,126		(115,163	)		1,797		(71,120	)		6,399		(41,438	)		(517	)	(2,286	)
Add:
Depreciation and depletion	13,714		14,085			7,912		9,106			5,435		4,650			367		329
Foreign exchange (gain) loss, net	(25,947	)	71,106			(14,960	)	49,872			(10,904	)	21,122			(83	)	111
Finance costs, including fines and penalties on overdue loans and borrowings and finance leases payments	54,240		60,452			39,345		33,880			17,411		25,645			1,078		2,173
Finance income	(1,176	)	(183	)		(2,482	)	(1,030	)		(2,234	)	(344	)		(54	)	(55	)
Net result on the disposal of non-current assets, impairment of goodwill and other non-current assets, write-off of accounts receivables, allowance for doubtful accounts and write-off of inventories to net realisable value	8,447		4,772			2,584		900			5,389		2,122			474		1,751
Loss (profit) after tax from discontinued operations, net	426		(932	)		-		(764	)		406		(168	)		20		-
Net result on the disposal of subsidiaries	(194	)	19			-		-			(194	)	19			-		-
Profit (loss) attributable to non-controlling interests	1,706		535			511		(444	)		1,056		812			139		166
Income tax expense (benefit)	4,893		8,322			5,019		5,632			(265	)	2,794			139		(103	)
Pension service cost and actuarial loss, other related expenses	(171	)	50			(198	)	125			26		(81	)		2		6
Other fines and penalties	1,396		1,598			556		707			742		890			98		-
Gain on write-off of accounts payable with expired legal term	(115	)	(224	)		(19	)	(33	)		(95	)	(190	)		(1	)	(1	)
Other one-off items	1,819		1,293			1,819		-			-		1,293			-		-
EBITDA	66,164		45,730			41,884		26,831			23,172		17,127			1,662		2,090
EBITDA, margin	24	%	18	%		34	%	25	%		14	%	11	%		4	%	5	%
In millions of Russian rubles	12m 2016		12m 2015			12m 2016		12m 2015			12m 2016		12m 2015			12m 2016		12m 2015
Net profit (loss) attributable to shareholders of Mechel PAO	7,126		(115,163	)		1,797		(71,120	)		6,399		(41,438	)		(517	)	(2,286	)
Add:
Impairment of goodwill and other non-current assets	5,202		1,460			1,336		-			3,866		16			-		1,444
Loss (profit) after tax from discontinued operations, net	426		(932	)		-		(764	)		406		(168	)		20		-
Net result on the disposal of subsidiaries	(194	)	19			-		-			(194	)	19			-		-
Effect on (loss) profit attributable to non-controlling interests	(109	)	585			-		-			(109	)	560			-		25
Foreign exchange (gain) loss, net	(25,947	)	71,106			(14,960	)	49,872			(10,904	)	21,122			(83	)	111
Pension service cost and actuarial loss, other related expenses	(171	)	50			(198	)	125			26		(81	)		2		6
Other fines and penalties	1,396		1,598			556		707			742		890			98		-
Gain on write-off of accounts payable with expired legal term	(115	)	(224	)		(19	)	(33	)		(95	)	(190	)		(1	)	(1	)
Other one-off items	1,819		1,293			1,819		-			-		1,293			-		-
Net (loss) profit, net of income tax	(10,567	)	(40,208	)		(9,669	)	(21,213	)		137		(17,978	)		(481	)	(701	)
Operating profit	42,690		24,252			31,012		16,005			11,531		8,526			701		39
Add:
Impairment of goodwill and other non-current assets	5,202		1,460			1,336		-			3,866		16			-		1,444
Loss on write-off of property, plant and equipment	1,953		691			863		199			1,089		492			1		-
Pension service cost and actuarial loss, other related expenses	(171	)	50			(198	)	125			26		(81	)		2		6
Other fines and penalties	1,396		1,598			556		707			742		890			98		-
Other one-off items	1,819		1,293			1,819		-			-		1,293			-		-
Adjusted operating profit	52,889		29,344			35,388		17,036			17,254		11,136			802		1,489
*** including inter-segment operations

	Consolidated Results					Mining Segment ***					Steel segment***					Power Segment***
In millions of Russian rubles	4q 2016		3q 2016			4q 2016		3q 2016			4q 2016		3q 2016			4q 2016		3q 2016
Net profit (loss) attributable to shareholders of Mechel PAO	1,579		(2,757	)		4,232		(2,682	)		(1,652	)	415			(801	)	(385	)
Add:
Depreciation and depletion	3,692		3,456			2,099		2,025			1,488		1,344			105		87
Foreign exchange (gain) loss, net	(6,209	)	(2,296	)		(3,240	)	(1,711	)		(2,954	)	(592	)		(15	)	7
Finance costs, including fines and penalties on overdue loans and borrowings and finance leases payments	10,993		13,447			7,211		9,984			4,199		5,059			272		256
Finance income	2,787		(76	)		1,477		(409	)		622		(1,519	)		(1	)	-
Net result on the disposal of non-current assets, impairment of goodwill and other non-current assets, write-offs of accounts receivables,  allowance for doubtful accounts and write-offs of inventories to net realisable value	6,629		588			1,752		494			5,000		34			(124	)	58
Loss (profit) after tax from discontinued operations, net	84		99			84		(43	)		-		137			-		5
Net result on the disposal of subsidiaries	(3	)	(136	)		-		-			(3	)	(136	)		-		-
Profit (loss) attributable to non-controlling interests	551		291			214		25			320		270			17		(3	)
Income tax expense (benefit)	2,471		3,057			2,325		1,877			100		1,146			46		34
Pension service cost and actuarial loss, other related expenses	(295	)	41			(289	)	30			(6	)	10			-		1
Other fines and penalties	549		179			237		(46	)		250		197			62		28
Gain on write-off of accounts payable with expired legal term	(54	)	(43	)		(16	)	(3	)		(37	)	(40	)		(1	)	-
Other one-off items	1,819		-			1,819		-			-		-			-		-
EBITDA	24,593		15,850			17,905		9,541			7,327		6,325			(440	)	88
EBITDA, margin	31	%	24	%		46	%	34	%		16	%	15	%		-4	%	1	%
In millions of Russian rubles	4q 2016		3q 2016			4q 2016		3q 2016			4q 2016		3q 2016			4q 2016		3q 2016
Net profit (loss) attributable to shareholders of Mechel PAO	1,579		(2,757	)		4,232		(2,682	)		(1,652	)	415			(801	)	(385	)
Add:
Impairment of goodwill and other non-current assets	4,828		374			962		374			3,866		-			-		-
Loss (profit) after tax from discontinued operations, net	85		99			84		(43	)		1		137			-		5
Net result on the disposal of subsidiaries	(3	)	(136	)		-		-			(3	)	(136	)		-		-
Effect on loss attributable to non-controlling interests	(48	)	(22	)		-		-			(48	)	(22	)		-		-
Foreign exchange (gain) loss, net	(6,209	)	(2,296	)		(3,240	)	(1,711	)		(2,954	)	(592	)		(15	)	7
Pension service cost and actuarial loss, other related expenses	(295	)	41			(289	)	30			(6	)	10			-		1
Other fines and penalties	549		179			237		(46	)		250		197			62		28
Gain on write-off of accounts payable with expired legal term	(54	)	(43	)		(16	)	(3	)		(37	)	(40	)		(1	)	-
Other one-off items	1,819		-			1,819		-			-		-			-		-
Net profit (loss), net of income tax	2,251		(4,561	)		3,789		(4,081	)		(583	)	(31	)		(755	)	(344	)
Operating profit (loss)	13,929		11,561			14,096		7,061			535		4,705			(506	)	(99	)
Add:
Impairment of goodwill and other non-current assets	4,828		374			962		374			3,866		-			-		-
Loss on write-off of property, plant and equipment	1,649		182			570		182			1,079		-			1		-
Pension service cost and actuarial loss, other related expenses	(295	)	41			(289	)	30			(6	)	10			-		1
Other fines and penalties	549		179			237		(46	)		250		197			62		28
Other one-off items	1,819		-			1,819		-			-		-			-		-
Adjusted operating profit (loss)	22,479		12,337			17,395		7,601			5,724		4,912			(443	)	(70	)
*** including inter-segment operations

Attachment B

CONSOLIDATED STATEMENT OF PROFIT (LOSS) AND
OTHER COMPREHENSIVE INCOME (LOSS)
for the year ended December 31, 2016
(All amounts are in millions of Russian rubles, unless stated otherwise)

			Year ended December 31, 2016			Year ended December 31, 2015 ****
Continuing operations
Revenue			276,009			253,141
Cost of goods sold			(146,322	)		(151,334			)
Gross profit			129,687			101,807
Selling and distribution expenses			(56,233	)		(51,117			)
Loss on write-off of property, plant and equipment			(1,953	)		(691			)
Impairment of goodwill and other non-current assets			(5,202	)		(1,460			)
Allowance for doubtful accounts			(758	)		(1,507			)
Taxes other than income taxes			(5,913	)		(5,853			)
Administrative and other operating expenses			(18,791	)		(17,300			)
Other operating income			1,853			373
Total selling, distribution and operating income and (expenses), net			(86,997	)		(77,555			)
Operating profit			42,690			24,252
Finance income			1,176			183
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments of RUB 6,013 million and RUB 19,167 million for the periods ended December 31, 2016 and 2015, respectively			(54,240	)		(60,452			)
Foreign exchange gain (loss), net			25,947			(71,106			)
Share of (loss) profit of associates, net of provision			(17	)			?
Other income			598			342
Other expenses			(2,003	)		(347			)
Total other income and (expense), net			(28,539	)		(131,380			)
Income (loss) before tax from continuing operations			14,151			(107,128			)
Income tax (expense) benefit			(4,893	)		(8,322			)
Income (loss) for the year from continuing operations			9,258			(115,450			)
Discontinued operations
(Loss) profit after tax for the year from discontinued operations, net			(426	)		822
Profit (loss) for the year			8,832			(114,628			)
Attributable to:
Equity shareholders of Mechel PAO			7,126			(115,163			)
Non-controlling interests			1,706			535
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in subsequent periods, net of income tax:			430			295
Exchange differences on translation of foreign operations			431			287
Net (loss) gain on available for sale financial assets			(1	)		8
Other comprehensive loss not to be reclassified to profit or loss in subsequent periods, net of income tax:			(23	)			(194		)
Re-measurement losses on defined benefit plans			(23	)			(194		)
Other comprehensive income for the year, net of tax			407			101
Total comprehensive income (loss) for the year, net of tax			9,239			(114,527			)
Attributable to:
Equity shareholders of Mechel PAO			7,529			(115,064			)
Non-controlling interests			1,710			537
Earnings (loss) per share
Weighted average number of common shares			416,270,745			416,270,745
Basic and diluted, profit (loss) for the year attributable to ordinary equity holders of the parent			17.12			(276.65			)
Earnings (loss) per share from continuing operations (Russian rubles per share), basic and diluted			17.99			(278.44			)
(Loss) earnings per share from discontinued operations (Russian rubles per share)			(0.87	)		1.79

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as of December 31, 2016
(All amounts are in millions of Russian rubles)

		December 31, 2016			December 31, 2015 ****
Assets
Current assets
Cash and cash equivalents		1,689			3,079
Trade and other receivables		19,054			16,013
Inventories		35,227			35,189
Income tax receivables		686			603
Other current financial assets		167			45
Other current assets		6,942			8,191
Total current assets		63,765			63,120
Non-current assets
Property, plant and equipment		204,353			215,844
Mineral licenses		36,099			38,517
Non-current financial assets		235			194
Investments in associates		265			284
Deferred tax assets		1,502			1,492
Goodwill		18,355			21,378
Other non-current assets		891			1,243
Total non-current assets		261,700			278,952
Total assets		325,465			342,072
Equity and liabilities
Current liabilities
Interest-bearing loans and borrowings, including interest payable, fines and penalties on overdue amounts of RUB 38,594 million and RUB 47,475 million as of December 31, 2016 and 2015, respectively		434,165			491,674
Trade and other payables		40,985			54,602
Advances received		3,815			3,492
Provisions		3,496			2,532
Pension obligations		944			1,120
Finance lease liabilities		10,175			13,507
Income tax payable		2,552			5,549
Taxes and similar charges payable other than income tax		9,195			8,034
Other current liabilities		19			26
Total current liabilities		505,346			580,536
Non-current liabilities
Interest-bearing loans and borrowings		11,644			4,308
Provisions		3,420			3,439
Pension obligations		3,501			3,746
Finance lease liabilities		421			481
Deferred tax liabilities		16,282			11,090
Other non-current liabilities		159			189
Other non-current financial liabilities		36,740			?
Income tax payables		540			137
Total non-current liabilities		72,707			23,390
Total liabilities		578,053			603,926
Equity
Common shares		4,163			4,163
Preferred shares		833			833
Additional paid-in capital		28,326			28,322
Accumulated other comprehensive income		848			445
Accumulated deficit		(294,444	)		(301,565	)
Equity attributable to equity shareholders of Mechel PAO		(260,274	)		(267,802	)
Non-controlling interests		7,686			5,948
Total equity		(252,588	)		(261,854	)
Total equity and liabilities		325,465			342,072

CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended December 31, 2016
(All amounts are in millions of Russian rubles, unless stated otherwise)

		Year ended December 31,
		2016			2015 ****
Cash flows from operating activities
Net profit (loss)		8,832			(114,628		)
Loss (profit) from discontinuing operations, net of income tax		426			(822		)
Net profit (loss) from continuing operations		9,258			(115,450		)
Adjustments to reconcile net profit (loss) from continuing operations to net cash provided by operating activities:
Depreciation		11,813			12,397
Depletion and amortization		1,901			1,688
Foreign exchange (gain) loss		(25,947	)		71,106
Deferred income taxes		5,104			7,946
Allowance for doubtful accounts		758			1,507
Write-off of accounts receivable		113			247
Write-off of inventories to net realisable value		364			1,003
Revision in estimated cash flows of rehabilitation provision		(375	)		(47		)
Loss on write-off of property, plant and equipment		1,953			691
Impairment of goodwill and non-current assets		5,202			1,460
Loss on sale of property, plant and equipment		57			102
Gain on sale of investments		(186	)		?
Gain on write-off of accounts payable with expired legal term		(115	)		(222		)
Curtailment and remeasurement of pension obligations		(325	)		(142		)
Pension service cost and actuarial loss, other related expenses		154			192
Finance income		(1,176	)		(183		)
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments of RUB 6,013 million and RUB 19,167 million for the periods ended December 31, 2016 and 2015, respectively		54,240			60,452
VEB commissions write-off		1,411			?
Provision for non-recoverable advances to pension funds		408			?
Other		(70	)		480
Changes in working capital items:
Trade and other receivables		(5,542	)		4,597
Inventories		(1,070	)		1,873
Trade and other payables		(4,259	)		(8,125		)
Advances received		588			(664		)
Taxes payable and other current liabilities		2,368			(1,465		)
Other current assets		(883	)		997
Income taxes paid		(2,101	)		(1,437		)
Net operating cash flows of discontinued operations		(436	)		(136		)
Net cash provided by operating activities		53,207			38,867
Cash flows from investing activities
Proceeds from disposal of securities		?			143
Loans issued and other investments		(133	)		(6		)
Interest received		128			25
Royalty payments associated with disposal of Bluestone		103			101
Proceeds from disposal of other subsidiaries		145			76
Purchases of available for sale securities		(4	)		?
Proceeds from loans issued		31			15
Proceeds from disposals of property, plant and equipment		285			405
Purchases of property, plant and equipment		(4,742	)		(5,076		)
Purchases of mineral licenses and other related payments		?			(71		)
Interest paid, capitalized		(782	)		(830		)
Net investing cash flows of discontinued operations		?			?
Net cash used in investing activities		(4,969	)		(5,218		)
Cash flows from financing activities
Proceeds from borrowings		4,002			13,875
Repayment of borrowings		(42,322	)		(11,896		)
Dividends paid		(5	)		(4		)
Dividends paid to non-controlling interest		(2	)		(1		)
Interest paid		(33,872	)		(28,910		)
Acquisition of non-controlling interest in subsidiaries		?			(1		)
Proceeds from sale of 49% share in Elga coal complex, with put-option granted....		34,300			?
Repayment of obligations under finance lease		(3,238	)		(2,677		)
Deferred consideration paid for the acquisition of subsidiaries in prior periods		(4,732	)		(4,819		)
Net cash used in financing activities		(45,869	)		(34,433		)
Effect of exchange rate changes on cash and cash equivalents		(1,807	)		331
Net increase (decrease) in cash and cash equivalents		562			(453		)
Cash and cash equivalents at the beginning of period		3,079			4,074
Cash and cash equivalents net of overdrafts at the beginning of period		891			1,344
Cash and cash equivalents at the end of period		1,689			3,079
Cash and cash equivalents net of overdrafts at the end of period		1,453			891