Raspadskaya shares have hit all-time highs, as the stock soared this year almost 300%, from 157 RUR to 449 RUR (2.2 USD to 6.4 USD) per share. Such rally is associated with the company’s successful financial performance in 2021, which, in turn, has been backed by rising world coal indices. Global prices for coking coal, produced by the company have jumped 3.2-fold.
The company’s average coal prices rose 54% in January-September 2021, as reported by Raspadskaya, though domestic market prices react to global prices with a delay of several months, therefore the fourth-quarter profit is expected to hit a fresh record due to new contract prices, which are generally revised on a quarterly basis.
The expected high dividend yield is considered by the market as a positive sign as well as a spin-off of the company from Evraz, planned for the fourth quarter. After that, the free float of Raspadskaya shares and liquidity on the Moscow Exchange may increase significantly.
Raspadskaya comprises seven underground mines, two open-pit mines, three washing plants in the Kemerovo region and one mine in Tuva. The company’s reserves amount to 1.9 billion t of coal. Evraz, which is the largest steel company in Russia, owns 90.9% stake (2.5% stake is on the balance sheet of Raspadskaya, and about 6.5% stake is in free circulation).
Raspadskaya’s coal extraction amounted to 20.6 mio t in 2020. In January-September 2021, the company produced 16.5 mio t (+1.9 mio t or +13.0% y-o-y).
Source: CAA Analytics
