Krastsvetmet: Summing Up the First Results of 2016

In 2016, Krastsvetmet’s revenue and net profit were 19 billion and 432 million rubles respectively.

The decrease in the Company’s revenue and profit was mainly due to several market factors.

As the secondary gold-containing raw materials market transitioned to toll manufacturing, these materials became commercially inaccessible to refining plants. The export of precious metal-containing raw materials was restricted at the legislative level in certain EAEU member countries. Protective export tariffs were imposed on PGM and their products over most of the calendar year.

The basic output in real terms remained at the level of 2015. 2016 saw each of the Company’s divisions achieve a historical record: the Refining Division excelled in the shipment of gold recovered from minerals, Jewelry Division — in the sales volumes of silver products, the Industrial Appliances Division — in the shipment volume of glass and basalt fiber bushings.

In 2016, the Company’s share in most of the target markets showed moderate growth and was 65% for gold, 60% for silver, 97% for PGM, 15% for jewelry in the chain segment, 50% for PGM industrial appliances.