OREANDA-NEWS. The strong pricing environment combined with the increase of Stoilensky GOK sales volumes in Q1 2007 compared to Q1 2006 resulted in an increase of sales by 99,1% and 0,7% compared to Q1 2006 and Q4 2006 respectively. Growing iron ore prices and sales volumes resulted in gross profit and operating profit increase in Q1 2007 compared to Q1 2006 by 164,7% and 179,3% respectively.

The gross profit and operating profit in Q1 2007 were close to the level of Q4 2006. Net profit at Stoilensky GOK in Q1 2007 amounted to RUR 3 bln. Net profit increased by 5,8%
compared to Q4 2006 and 186,1% compared to Q1 2006. The net profit increase increase was primarily attributable to growth of sales revenue and interest income.