Core Viewpoint - The company is expected to report an increased net loss attributable to shareholders for the first half of 2019, despite overall operational performance meeting expectations and higher EBITDA from K&S compared to the same period last year [1][2]. Financial Performance - The company anticipates a net loss of approximately $11 million related to unamortized borrowing costs associated with a loan from the Industrial and Commercial Bank of China, which will be fully written off in the first half of 2019 [2]. - The average production capacity for Q2 2019 was about 88%, with June's capacity reaching 93%, marking a monthly production record [2][6]. - The company has benefited from rising iron ore prices, with futures contracts increasing by over 80% since the beginning of the year due to supply constraints from major producers [3][7]. Operational Insights - The company operates three iron ore mines in Russia: KURANAKH, GARINSKOYS, and K&S, with K&S being the most economically viable due to its geographical advantages [4][6]. - K&S has been in commercial production since early 2019, achieving an average capacity of 70% in 2018 and reaching 93% in June 2019 [6][7]. - The completion of the Amur River Bridge is expected to reduce transportation costs by up to $5 per ton, further enhancing profitability [7]. Market Context - The Russian ruble has appreciated against the US dollar, increasing foreign exchange costs for the company, which primarily settles transactions in USD [2]. - Despite the challenges, the company is positioned to benefit from a favorable iron ore pricing environment, with expectations of sustained high prices due to tight international supply [7].

Core Viewpoint - The iron ore contract for August in Singapore has increased by 3.4% to $107 per ton [1] Industry Summary - The rise in iron ore prices indicates a potential recovery in demand within the steel industry, which is closely linked to construction and manufacturing sectors [1]

Group 1 - The main iron ore futures contract increased by over 2.00% during the day, currently reported at 808.50 yuan per ton [1]

Core Viewpoint - Iron ore prices have surpassed $100 per ton, indicating a significant shift in the market dynamics for this commodity [1] Group 1 - The increase in iron ore prices reflects growing demand and potential supply constraints in the industry [1] - This price level may impact the profitability of mining companies and influence investment decisions within the sector [1] - Analysts are closely monitoring the factors contributing to this price surge, including global economic conditions and production levels [1]