Service contract with Metalloinvest extended to end 2016
Globaltrans Investment PLC (“The Company” or together with its consolidated subsidiaries “Globaltrans” or “the Group”) (LSE ticker: GLTR), announces that the Group has agreed with Metalloinvest to extend the duration of the service contract between them and will continue transporting 100% of Metalloinvest rail volumes to the end of 2016 (an extension from 31 May 2015 as was initially agreed). The pricing formula remains unchanged with transportation prices subject to quarterly review and agreement between the parties. Metalloinvest is a leading global iron ore and HBI producer.
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NOTES TO EDITORS
Globaltrans is a leading private freight rail transportation group with operations in Russia, the CIS and the Baltic countries. The Group’s main business is the provision of freight rail transportation services. Globaltrans provides services to more than 650 customers and its key customers include a number of large Russian industrial groups in the metals and mining and the oil products and oil sectors.
The Group has a total fleet of about 65 thousand units of rolling stock with an average age of about eight years. Universal gondola cars and rail tank cars constitute the backbone of the Group’s fleet. About 95% of the Total Fleet is owned by the Group. The Group’s market share (including engaged fleet) was 8.5% of overall Russian freight rail transportation volumes in the first six months of 2013.
Globaltrans' global depositary receipts (ticker symbol: GLTR) have been listed on the Main Market of the London Stock Exchange since May 2008. Globaltrans was the first freight rail transportation group with operations in Russia to have an international listing.
To learn more about Globaltrans, please visit www.globaltrans.com
Metalloinvest is a leading global iron ore and HBI producer and supplier and one of the regional steel producers.
Metalloinvest extracts and exploits iron ore from the second largest measured iron ore reserve base in the world with approximately 14.6 billion tonnes of proven and probable reserves on a JORC equivalent basis and about 150 years of reserve life.
In 2012, according to CRU, Metalloinvest was the fifth largest commercial iron ore producer in the world, the third largest producer of pellets globally, the leading producer of merchant HBI in the world.
Metalloinvest comprises of leading iron ore production facilities in Russia – Lebedinsky GOK and Mikhailovsky GOK; steel mills – Oskol Elektrometallurgical Plant and Ural Steel; a ferrous scrap enterprise – Ural Scrap Company.
To learn more about Metalloinvest, please visit www.metalloinvest.com
Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of Globaltrans. You can identify forward-looking statements by terms such as 'expect', 'believe', 'anticipate', 'estimate', 'intend', 'will', 'could', 'may' or 'might', the negative of such terms or other similar expressions. Globaltrans wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Globaltrans does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Globaltrans, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Globaltrans operates in, as well as many other risks specifically related to Globaltrans and its operations.