Daily analyst comments

Vyksa Metallurgical Plant continues to build plate iron mill


	Vyksa Metallurgical Plant

Capitalization: 2 677 428 077,50 $

Common shares
Price	1 422,50 $

Price changing
week	month	year
1,6%	0,8%	115,5%

22.07.10 11:10

Next summer, Vyksa Metallurgical Plant plans to commission a new plate iron mill 5000. We are positive about the vertical integration efforts taken by the leading Russian LDP manufacturer.

Vyksa Metallurgical Plant (RTS: VSMZ) is continuing with the construction of a new plate iron mill with a 1.2 mn ton annual capacity, Metal Courier reported July 22 with reference to company official spokespersons. The company is currently mounting equipment for the new plate iron mill 5000. Construction is to be completed in 1Q2011. In summer 2011, the mill is expected to enter into production. The mill should reduce Vyksa Metallurgical Plant’s dependence on external suppliers of plate iron, used in production of LDP.

We are upbeat in the strengthening of the plant’s vertical integration. In-house plate iron capacity should help the company become less dependent on external suppliers and boost efficiency.

The fair value of Vyksa Metallurgical Plant is USD 2470 per share with a 75% upside.

Vladimir Sergievskiy

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