RUSAL operating results for the second quarter of 2015

UC RUSAL's aluminum production in the second quarter of 2015 reached 908 thousand tonnes, up 0.8 percent qoq and 1.1 percent YoY. In terms of the issue volume, the Company adheres to the previously announced forecasts.

Aluminum sales in the second quarter of this year decreased by 5.1 percent compared to the first quarter and amounted to 808 thousand tons. The decline in aluminum sales in the second quarter of 2015 is attributable to higher-than-usual sales volumes in the first quarter of this year, driven by shipment delays caused by adverse weather conditions in ports from October to November 2014, which were offset in early 2015.

The average aluminum sales price decreased by 7.7 percent in the second quarter of 2015 compared to the first, to $ 2,124 per tonne, driven by a decline in the spot price of the metal at the London Metal Exchange (LME), as well as a decrease in premiums from metal exports.

In the second quarter of 2015, UC RUSAL's alumina production remained at the level of 1,818 thousand tonnes, which is slightly higher compared to the first quarter of this year (+ 0.6 percent) and the second quarter of 2014 (+ 0.8 percent).

Bauxite production in the second quarter of 2015 was 3,223 thousand tonnes, up 3.2 percent quarter-on-quarter and 7.3 percent year-on-year. The increase in production is mainly attributable to stronger demand for alumina at the company's facilities and increased sales to third parties.

UC RUSAL's management expects aluminum production to remain in line with last year's yoy. The company does not plan to restart the shutdown aluminum smelters in 2013. UC RUSAL considers it possible to reduce its annual capacity down to 200 thousand tons over the next 12 months due to the implementation of an active capex management program, which includes optimization and scheduled maintenance of production.