Steppe Cement Ltd

Market Update for the Third Quarter ended 30 September 2016

Third quarter 2016 revenue of KZT 7,316 million was 6% lower than revenue of KZT 7,770 million achieved in the corresponding quarter in 2015. For the 9 months ended 30 September 2016, Steppe Cement Ltd ("Steppe Cement") recorded revenue of KZT 15,506 million compared to KZT 16,047 million in the corresponding 9 month period in 2015, representing a 3% decrease.

A sales volume of 609,471 tonnes was achieved during the third quarter, a 3% decrease from the third quarter of 2015 as we were limited by clinker output. For the first 9 months of 2016, the sales volume increased by 2% to 1,371,024 tonnes from 1,347,983 tonnes in the corresponding 9 month period in 2015.

Average price (ex-VAT) for delivered cement was KZT 11,310 per tonne in the first 9 months compared to KZT 11,905 per tonne in the corresponding period in 2015. For the first 9 months of 2016, ex-factory price stood at KZT 9,451 per tonne.

For the first 9 months of 2016, the cement market in Kazakhstan decreased by 7% compared to the corresponding period in 2015, while imports declined from 13% to 5% of the total consumption and exports from Kazakhstan increased by nearly three times. Steppe Cement maintains its estimate of the cement market for 2015 at 9 million tonnes, with Steppe Cement's market share at 18 to 19%.

Steppe Cement's AIM nominated adviser and broker is RFC Ambrian Limited. Nominated Adviser: Contact Stephen Allen or Oliver Morse at +61 8 9480 2500.

Broker: Contact Charlie Cryer at +44 20 3440 6800

Steppe Cement Ltd. published this content on 12 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 October 2016 08:40:02 UTC.

Original documenthttp://www.steppecement.com/pdf/Market_update_Q3_2016.pdf

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