Production cost, RUR mln
| Item | 2009 | 2010 | 2011 | 2011 on 2010, % |
|---|---|---|---|---|
| Production cost in uranium operations (cost of uranium raw material, enrichment and conversion services) | 49,411 | 50,279 | 44,734 | 89.0 |
| supplies to domestic market | 10,850 | 1,724 | 0 | 0 |
| supplies to international market | 38,561 | 48,555 | 44,734 | 92.1 |
| Other costs in production cost (products for resale, insurance, delivery, storage of raw material, etc.) | 4,832 | 6,748 | 1,290 | 19.1 |
| Total | 54,243 | 57,027 | 46,024 | 80.7 |
A 7.9% decrease in the production cost within the uranium business for the purposes of supplies to the foreign market in 2011 over 2010 was determined by a reduction of total costs of uranium raw material, enrichment and conversion services due to the changes in the structure of sales and production parameters: in 2011 no raw material, received from the Japanese energy companies on account of the payment for the raw component of the EUP, was sold; in addition, the actual volume of supplied and purchased products diminished compared to 2010. Despite an increase in the price of the uranium raw material issued to be used in production, as well as an increase in the price of enrichment and conversion services, the total production cost decreased in 2011 over 2010, because a drop in the actual volume of purchased products levelled off the negative impact of the price increase.
A decrease of production cost and other costs within the production cost in the reporting year compared to 2010 is determined by the termination of shipments in the internal market and completion of shipments under the contract for providing technical assistance for the 4th construction stage of a gas centrifuge plant in China.
Business expenses, RUR mln
| Item | 2009 | 2010 | 2011 | 2011 on 2010, % |
|---|---|---|---|---|
| EUP Insurance | 741 | 767 | 561 | 73.1 |
| EUP Delivery | 437 | 628 | 521 | 83.0 |
| Other business expenses (insurance of business risks, customs fee and duties for export, EUP storage, contractors' services, etc.) | 508 | 1,117 | 1,260 | 112.8 |
| Total | 1,686 | 2,512 | 2,342 | 93.2 |
A 6.8% decrease in business expenses in 2011 over 2010 was largely determined by the following factors:
- a decrease in the actual sales as a result of the accident in Japan in March 2011;
- a reduction in insurance tariffs within the Company's 2011 insurance scheme, which is developed in cooperation with JSC Atomic insurance broker;
- completion of shipments under the contract for providing technical assistance for the 4th construction stage of a gas centrifuge plant in China.
A 12.8% increase in other business costs is associated with an increase in the cost of business risk insurance, which, in its turn, occurred as a result of a corresponding increase of the total amount of revenue from the sales in 2011 over 2010 (please see Appendix 1).
A 2.1% decrease in general administrative expenses in 2011 over 2010 resulted from the Company's consistent policy of maintenance cost reduction.
Management expenses, RUR mln
| Item | 2009 | 2010 | 2011 | 2011 on 2010, % |
|---|---|---|---|---|
| Personnel costs | 1,146 | 1,215 | 1,263 | 104.0 |
| Costs of buildings, machinery and vehicles maintenance, telecommunications, IT, etc. | 507 | 327 | 288 | 88.1 |
| Consulting and other services (excluding charity and sponsorship) | 344 | 266 | 219 | 82.3 |
| Total | 1,997 | 1,808 | 1,770 | 97.9 |