STEPPE CEMENT LTD - Unaudited Interim Results for the Half Year Ended 30 June 2026, Market Update and Dividend

STEPPE CEMENT LTD delivered a strong investor update for the first half of 2026, reporting record sales volumes and a significant improvement in financial results. Cement sales volumes increased 15%, while higher pricing and the appreciation of the Kazakh tenge helped drive revenue to approximately US$61 million, up 49%, with gross profit rising to around US$20 million from US$8.6 million a year earlier. The company ended the period with US$18.8 million in cash and no debt, supporting continued investment and shareholder returns. STEPPE CEMENT is progressing its approximately US$30 million Line 6 expansion project, which aims to increase clinker capacity from 3,000–3,200 tonnes per day to 4,500 tonnes per day and lift annual cement production capacity to around 2.5 million tonnes, while reducing production costs by approximately US$2 per tonne. Management is also assessing opportunities to expand capacity further to 3 million tonnes. The Kazakhstan cement market remains strong, supported by infrastructure investment, housing demand, urbanisation and industrial development, although competition and imports remain significant. STEPPE CEMENT plans a three-month Line 6 shutdown from April to June 2027 to complete key upgrades, while targeting approximately 2 million tonnes of production and sales for the year. The company also intends to pay a dividend in late October 2026 and remains focused on disciplined capital allocation, lower production costs and sustainable long-term growth.