Retention of low-cost position

Efficiency and cost-cutting remain EVRAZ primary focus. The Group is on pace to generate improvements with an annual EBITDA effect of 3% of the cost of goods sold.

Coal cash cost, US$/t

The Coal segment’s cash cost was US$47 per tonne in 2018, mainly due to geological conditions, rise in auxiliary materials prices, and additional involvement of 3rd-party contractors due to higher volumes.

Semi-finished product cash cost, US$/t

Cash costs of semi-finished products totalled US$246 per tonne in 2018, which is largely in line with the 2017 figure, as efficiency improvements have offset the growth of prices for key raw materials.

Breakdown of cost-cutting programme effect in 2018, US$ million

In 2018, the EBITDA effect from cost-cutting initiatives totalled US$273 million. The Group plans to maintain the current pace of improvement with an annual cost-cutting programme at the level of at least 3% of the cost base.