Russia’s MMK to accumulate $500 mln in cash after debt cut

MOSCOW, Nov 7 (PRIME) -- Russia’s Magnitogorsk Iron and Steel Works (MMK) plans to accumulate about U.S. $500 million in cash after its debt diminishes to $230 million in 2017 from the current $520 million, Andrei Yeryomin, the company’s director for economy, said on Monday in a conference call.

“This year the bulk of our free cash flow was allocated for debt redemption. After the debt has fallen, we plan to allocate the funds on creation of a cash buffer. The target level of accumulation is $500 million,” Yeryomin said.

The company plans to redeem $136 million in October–December 2016, and it has already allocated the sum on deposits. It is to redeem $287 million in 2017, $73 million in 2018, and $24 million in 2019.

The company’s further goal is a dividend policy that envisages payment of at least 30% of its free cash flow in dividends, he added.

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