UrBC, Chelyabinsk, 07.06.2008. ‘Due to the lack of their own raw materials resource base, the shares of Magnitogorsk Iron & Steel Works (MMK) still get a little discount, even though the enterprise did a good job in terms of providing for its own raw stuffs,’ Sobinbank’s analyst Nikolai Sosnovskiy reported in the course of an online conference hosted by Finam’s website.

‘We hope the investors can appreciate MMK’s acquisitions as well as its development strategy, which, it its turn, will probably lead to re-assessment of the company. Some M&A can also be expected,’ he noted.

MMK is currently working hard on creating its own raw materials base through developing Bakalskoye deposits, buying a share in Belon coal company, and putting up Prioskolskiy ore mining and processing enterprise in Belgorod Region. All this will fully cover the enterprise’s iron ore and baking coal needs.