INTERIM RESULTS

1
INTERIM RESULTS
HIGHVELD STEEL AND VANADIUM CORPORATION LIMITED

• for the six months
• ended June 2006

2
Corporate Vision

• To create exceptional value and benefits on a
  sustainable basis across commodity cycles for all
  stakeholders, by developing the business into the
  worlds leading vanadium products producer,
  co-producing low cost niche market iron and steel
  products

3
Objectives

• Maintain and grow position as the worlds leading
  Vanadium and Vanadium Products producer
• Achieve low cost position for steel production

4
Main Drivers

• Focus on Vanadium and Steel Disinvest from
  alloys
• Re-engineering the organisation improve
  business processes, manufacturing execution
  systems, manpower productivity and ensure
  continuous improvement
• Procurement initiatives and capital efficiency
• Capital expenditure to improve plant and
  equipment availabilities, yields and
  efficiencies, and to resolve environmental issues.

5
HIGHLIGHTS

• Second best first half performance in Highvelds
  history
• Headline earnings of R 401 million
• Cash flow from operations of R 703 million
• Taxation paid of R 508 million
• Capital expenditure of R 194 million
• Interim dividend of 250 cents per share
• Cost savings of R 113 million
• Manpower productivity Improvement of 14 in
  Steelworks
• LTIFR of 0,26
• New Shareholders Evraz and Credit Suisse on board

for the six months ended June
6
Flow of the operation and actual production for
the 6 Months ending June 2006

Highveld Steel and Vanadium Corporation
INVESTMENTS
OPERATIONS
Vanadium VANCHEM
Alloys Rand Carbide
Joint Venture
Equity
lt6mm ore 380 481 t 1.59 V
Ore Mapochs Mine
Steel Steelworks
gt6mm ore 781 690 t 54.23 Fe
Alloys Transalloys
50
100
50
MCFeMn 22 000 t
SiMn 75 941 t
14
Iron Plant 395 243 t
Vanadium Hochvanadium Holdings AG Austria
Vanadium South Africa Japan Vanadium (Pty)
Ltd (SAJV)
Alloys Ferroveld Joint Venture
Group 9.8
Export 85.2
Chemicals 18.5
Vanadium Pentoxide (V2O5) 42.6
HIVOX (V2O3) 38.9
Local 5.0
Local 9.8
Steelworks 10.3
Export 79.9
78.3
Vanadium Slag Production 31 830 tons Sales 34 605
tons 21.9 V2O5
Steel Plant 428 259 t
Metal Scrap
21.7
Paste 8 097 t
Char 37 528 t
VANCHEM Smelter
Treibacher 6040 Partnership (6535 above FeV
price of US 17/kg)
FeSi 26 833 t
51.5
16.0
Ferro Vanadium (FeV) Ferro Vanadium Nitride FeVN
FeV Slag
Mills
72
14
Siltech 46.1
Transalloys 0
Local / Export 2.4
Transalloys 42.9
Steelworks 0.9
Local / Export 40.2
Plate 93 826 tons
Coil 125 244 tons
Structural Steel 160 325 tons
Billets 10 195 tons
Columbus 49.0
Export 8.7
Local 7.9
Steelworks 34.4
Bumatech SA
Alcan UK Formerly Pechiney Via Hochvanadium
Treibacher Partnership Via Hochvanadium
Vametco SA (marketed by Stratcor, USA)
Rolled products to merchants and export markets
Masterloy Products Company 5.9
SAJV 78.0 504010 Joint venture
Iron Making
Steel Making
HRC Mill
Billets Local 7 332t Export 10 122t
Plate Local 79 664t Export 21 792t
Coil Local 135 122t
Structural Steel Local 93 210t Export 73 481t
Coal
Scrap
Oxygen
Alloys
Slabs
Plate Mill
V Products
Nitrovan
Slag
FeV
FeV
Mined Ore
Pre- Reduction Kilns
BOF
Ladle Furnace
Casters
Submerged Arc Furnace
Shaking Ladle
Reading Alloys USA 16.1
Sections Mill
TiO2 Slag
Vanadium Slag Sales
Blooms Billets
7
LTIFR GROUP
As from 2005 contractors included in safety
statistics
for the six months ended June
8
ACCIDENTS / FATALITIES
As from 2005 contractors included in safety
statistics
for the six months ended June
9
GROUP REVENUE(R millions)
for the six months ended June
10
SEGMENTAL REVENUE 2005 vs 2006
for the six months ended June
11
AVERAGE RAND/DOLLAREXCHANGE RATE
for the six months ended June
12
HEADLINE EARNINGS(R millions)
for the six months ended June
13
EBIT BY SEGMENT(R millions)
for the six months ended June
14
VANADIUM EBIT BY SEGMENT(R millions)
for the six months ended June
15
PRODUCTIONROLLED PRODUCTS (TONS 000)
for the six months ended June
16
TOTAL OXIDES PRODUCTIONVANCHEM DIVISION ('000
Kgs V2O5)
for the six months ended June
17
TOTAL FERROVANADIUM PRODUCTION ('000 Kgs V)
for the six months ended June
18
PRODUCTION VANADIUMSLAG ('000 Kgs V2O5)
for the six months ended June
19
CARBON STEEL AVERAGE EXPORT SELLING PRICE (/TON)
for the six months ended June
20
CARBON STEEL AVERAGE LOCAL SELLING PRICE (R/TON)
for the six months ended June
21
VANADIUM PENTOXIDEAVERAGE SELLING PRICE (/lb
V2O5)
for the six months ended June
22
VANCHEM FERROVANADIUMAVERAGE SELLING PRICE (/kg
V)
for the six months ended June
23
TRANSALLOYS - PRODUCTIONSILICOMANGANESE (TONS)
for the six months ended June
24
RAND CARBIDE - PRODUCTIONFERROSILICON (TONS)
for the six months ended June
25
SILICOMANGANESE EXPORTSELLING PRICES (/TON)
for the six months ended June
26
MC FERROMANGANESE EXPORTSELLING PRICES (/TON)
for the six months ended June
27
HIGHVELD GROUPCAPITAL EXPENDITURE (R millions)
for the six months ended June
28
GROUP CASH FLOW(R million)
for the six months ended June
29
DIVIDEND HISTORY(cents per share)
for the six months ended June
30
PROFIT IMPROVEMENT INITIATIVES (R millions)
for the six months ended June
31
PREMIUMS VS CLAIMS(R Millions)
SUPPLIED BY MARSH
32
Way forward

• Finalise Anglo exit
• Strong local and overseas steel markets
• Improved alloy prices
• Weaker Rand
• Steady Vanadium demand and price levels
• New vanadium product development
• Maintain capital expenditure program

33
Competitive Advantages

• Full backward integration no exposure to iron
  ore and currently eliminating exposure to
  metallurgical coal
• Cost advantage through co-production of vanadium
  using own ore
• Leading producer of vanadium and vanadium
  products in the world
• Niche supplier of heavy structural sections and
  heavy plate in South Africa
• Value adding expansion programme in place to
  increase steel production by 20, vanadium by 30
  and achieve lowest cost quartile position
• Well established, long standing customer and
  labour relationships
• Proactive management of environmental issues and
  world class safety performance

1
34
Overview of Activities
MAPOCHS MINE
Ore Fines
Lumpy Ore
SiMn FeSi
VANADIUM
STEELWORKS
FERROALLOYS CARBONACEOUS PRODUCTS
Vanadium Slag
MCFeMnPaste
SiMn FeSi MCFeMnChar Paste
Plate Coil Structural Steel Billets
V2O5 FeV / FeVNV Chemicals
Vanadium Slag
EXTERNAL PARTIES
Integrated model gives flexibility to favour most
profitable products at any point in the cycle
2
35
Vanadium Slag
Shaking Ladle
Vametco Minerals Corporation
VanadiumSlag Sales
Co-operation profit sharing agreement
Treibacher Industries AG
Iron Steelworks
3
36
Vanchem Production Process
FeV
4
37
Steady Vanadium Consumption Growth...
CAGR 3.3
CAGR 4.7
CAGR 1.0
000 tonnes
US / kg V
Closure of Windimurra and Vantech
Considerable expansion in capacity (e.g.
Windimurra and SA refurbishments)
Source Metal Bulletin, McKinsey Analysis
19
38
Evraz Highlights

• Vertically integrated steel and mining business,
  among the 15 largest steel producers in the world
  
• 2005 Production of 13.9 million tonnes of crude
  steel and 12.1 million tonnes of rolled products
  
• 2005 EBITDA Margin of 28.6 is in the Top 10
  globally
• Leader in Russian long products market with
  30-100 market share
• High level of vertical integration and
  self-sufficiency in iron ore and coal
• One of the lowest cost producers of steel in
  Russia and CIS with mines located close to steel
  production sites
• Strong commitment to high standards of corporate
  governance

39
Top Russian Steel Producer
Evraz Groups main locations
Top Russian steel producers
Output of Russian assets
(mt)

Russian
Main
products
ranking
Company

2003

2004
2005

Vitkovice Steel




1
Evraz

Group

13.9
13.7
13.8

Long

2

MMK

11.5

11.3

11.3

Flat/long

Palini e Bertoli
3

Severstal

9.9

10.4

10.8

Flat/long

Stratcor
4

NLMK

8.9

9.1

8.4

Flat

5

Mechel

4.6
5.5

4.6

Long/flat

Source
Chermet, Evraz
Note

Crude steel output


Stratcor

St. Petersburg
Moscow
N.Novgorod
KGOK
Kiev
Lipetsk
Surgut
VGOK
Perm
Neryungri Ugol
Stary Oskol
NTMK
Samara
Yekaterinburg
Penza
Tomsk
Omsk
Bratsk
Chelyabinsk
Kemerovo
Krasnoyarsk
Novosibirsk
Mine 12
Nakhodka Sea Port
Novokuznetsk
Raspadskaya
Yuzhkuzbassugol
Irkutsk
ZapSib
NKMK
EvrazRuda
Vanadium
40
Building Global Vanadium Business

• Vanadium market is experiencing high growth rates
  due to growing steel production
• Diversified processing base allows Evraz to
  capture more value from vanadium slag

Global vanadium consumption growth rate
000 tonnes
mt

1550
80
Vanadium consumption
1450
Steel production
Steel production
70
Vanadium
consumption
1350
1250
60
1150
50
1050
950
40
850
30
750
650
20
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
Source CRU, Evraz