Ezz Steel Co. announced the commencement of trial operations at its new DRI plant, where commercial operations to start by mid-2015, said a recent company note compiled by EFG-Hermes.

Kamel Galal, company's investor relations manager who was qouted by EFG noted that the company has already commenced cold testing trial operations at the plant and expects that the plant will be fully operational by mid-2015.

However, Based on EFG's discussions with management, the plant had been slated to start commercial operations by March 2015.

Hence, the delay in the start-up of the DRI plant poses c12-15% downside risk to Ezz Steel 2015 EPS estimates, noted EFG.

EFG-Hermes has set earlier Ezz Steel's shares Fair Value at EGP23/shr with Buy recommendation.