Page 136 - RusRPTNov19

payments. Most of the investment plans reported by Vedomosti concern the Ust-Yavinsky mine worth $1.2bn and 2.8mn tonnes of potash annual capacity, planned to be operating at full capacity by 2024. In 2019 the project is reportedly 56% financed, with the remaining investment at $0.5bn. Other productions assets mentioned include Solikamsk-2 mine, Solikamsk-3, and Polovodovo mine.
PhosAgro reported its 3Q19 trading update. Total fertilizer production in 3Q19 grew 15% y/y to 2.5mn tonnes . Phosphate rock production grew 8% y/y, while DAP/MAP and nitrogen-based fertilizer output climbed 17% and 16% y/y, respectively. Overall, in 9m19 output rose 7% y/y to reach 7.2mn tonnes, which represents 75% of the full-year production guidance announced at the 2019 investor day (9.5mn tonnes). Sales of phosphate-based fertilizers in 3Q19 were seasonally strong - up 20% Q-o-Q and 12% y/y, with the 9m19 total accounting for 75% of our full-year forecast. The strong volumes were supported by strong seasonal demand from Europe, which accounted for 25% of total sales - up 2 pp Q-o-Q and 9 pp y/y.
● Other
En+ is covered by banks again with a BUY recommendation and a target price of $10.97 per share. Sberbank CIB sees limited upside for aluminium prices from current levels given weak global demand and no evident cost push that could stimulate capacity closures to tighten the market. “We focus on two elements for the valuation. First is the power segment, which is a stable cash-generating business that should secure a 5.1-6.5% dividend yield in 2021-23, in our view. Second is the Nornickel stake held by Rusal, which accounts for roughly 90% of our fair value for Rusal. We expect the dividend stream from this stake to help Rusal to deleverage and enable it to pay dividends starting next year, providing an additional 3.9-4.4 pp of dividend yield for En+ shareholders after 2021,” says Sberbank.
9.2.12 Transport corporate news
First Cargo Company (FCC) of Russian billionaire Vladimir Lisin has placed a bid for Russian container operator Transcontainer and submitted a request to Russian and German regulators to approve the acquisition, Reuters reported on October 11. The auction by Russian Railways scheduled for November 27 sets a starting price of RUB36.16bn ($553mn) for 50% plus 2 shares in Transcontainer, one of the most valuable transportation assets in Russia. FCC bid has reportedly been approved by Russian watchdogs and awaits the ruling of German regulators. The Transcontainer deal has been delayed several times in botched privatisation efforts, and is one of the most valuable transportation assets in Russia, on a market that saw a number of large deals in 2018. Other bidders for Transcontainer include Delo Group controlled by Sergei Shishkarev . Russian billionaires Roman Abramovich and Alexander Abramov already acquired 24.5% stake in Transcontainer from RZD and reportedly intends to seek a controlling stake . Enisey Capital affiliated with Abramovich and Abramov have already registered for the upcoming auction of the controlling stake in Transcontainer.
136 RUSSIA Country Report November 2019 www.intellinews.o