Stock Exchange
Release
25 August 2010
Talvivaara Mining Company Interim Report for January - June 2010
Second quarter highlights
Payable nickel and
zinc production 2,729 tonnes and 5,575 tonnes, respectively; new production
records set each month
Net sales EUR 35.2 million,
operating profit EUR 2.5 million
EUR 100 million corporate revolving
credit facility signed in June
Second production line at the metals
recovery plant successfully commissioned in June
Permit application to extract
uranium as a by-product lodged in April; Environmental Impact Assessment
relating to uranium recovery ongoing
Half year highlights
Payable nickel and
zinc production 3,339 tonnes and 8,535 tonnes, respectively
Net sales EUR 46.9 million,
operating profit EUR 0.2 million
Zinc streaming agreement with
Nyrstar NV for 1.25 million tonnes of zinc in concentrate completed in February;
pre-payment of USD 335 million received from Nyrstar
Project Term Loan Facility of USD
320 million fully repaid in February using the proceeds of the zinc streaming
agreement
All nickel, zinc and foreign
exchange risk hedging positions associated with the Project Term Loan Facility
closed in February for net proceeds of EUR 46 million
Production guidance
Nickel output at the Talvivaara mine increased from 610 t in the first quarter
to 2,729 t in the second quarter, demonstrating good progress in the production
ramp-up. An additional ca. 50% increase in quarterly production is anticipated
in the third quarter. With the commissioning of the second hydrogen plant in
October 2010, the fourth quarter production is expected to reach a level that
allows the Company to achieve total nickel production of ca. 15,000 t during the
current year. Talvivaara continues to expect the annualized production rate to
exceed 30,000 t before the year end and the full scale production target of
50,000 t per annum to be achievable in 2012.
Key figures
Q2
Q2
Q1-Q2
Q1-Q2
Q1-Q4
EUR million
2010
2009
2010
2009
2009
Net sales
35.2
1.7
46.9
1.8
7.6
Operating profit (loss)
2.5
(10.1)
0.2
(7.9)
(54.8)
Profit (loss) for
the period
(16.8)
(2.4)
(33.7)
(11.2)
(55.0)
Earnings per
share, EUR
(0.06)
(0.01)
(0.12)
(0.04)
(0.19)
Equity-to-assets
ratio
38.4%
44.5 %
38.4 %
44.5%
43.5 %
Net
interest-bearing debt
190.7
397.4
190.7
397.4
426.2
Debt-to-equity
ratio
51.6%
108.4%
51.6 %
108.4 %
111.4
%
Capital expenditure
36.3
28.0
55.3
57.7
118.5
Cash and cash
equivalents
at the end of the period
35.4
24.3
35.4
24.3
11.9
Number of employees
at the end of the period
382
276
382
276
308
CEO Pekka Perä:
"I am pleased to report that we set new
production records every month during the second quarter. The positive
development in ramp-up also helped us generate an operating profit both for the
second quarter and the half year.
The successful commissioning of the second
production line at our metals recovery plant was a major milestone and a
pre-requisite for further increases in production volumes going forward. I am
also happy to note that since its start-up in June, the new production line has
demonstrated a clearly better early track record than the first line in terms of
availability and consistency of operation.
Our main operational challenge during the
period continued to be the mitigation of hydrogen sulphide odour discharges. At
present, the issue is under control in normal operating conditions, but work
continues to improve the gas scrubbing capacity to also handle occasional
fluctuations in hydrogen sulphide discharges that may result from volume or
other variations in the production process.
We regard the outlook for nickel as
generally positive with industrial demand anticipated to improve after the
summer season and going into the final quarter of the year. We anticipate this
to support the recent price range, which has varied from around USD 19,000/t in
June to more than USD 22,000/t in August. The upward trend over the summer
appears to have been mainly financial investor driven with the euro/dollar
movements and rather erratic macroeconomic signals also having played a
role.
In the short term we expect to sustain our
ramp-up in metal output and are confident that our cash flow will turn positive
before the end of this financial year."
Webcast and conference call on 25 August
2010 at 12:00 pm UK / 2:00 pm Finland
A combined webcast and conference call on the interim report
for January-June 2010 will be held at 12:00 pm UK / 2:00 pm Finland on 25 August
2010. The webcast can be accessed through the following link:
http://qsb.webcast.fi/t/talvivaara/talvivaara_2010_0825_q2/
Details for the conference call:
Conference id: 873473
Participant - UK: +44
(0)20 7162 0025
Participant - North America Free phone: +1
877 491 0064
Participant - Finland: +358 (0)9 2313 9201
Further details on the event can be found on the Talvivaara
website, www.talvivaara.com. The webcast will also be available for
viewing afterwards on the Talvivaara website and through the above link.
Talvivaara Mining Co Plc Interim 2010 PDF:
https://inpublic.huginonline.com/hugin/files/attachment/136227/R/1439888/384260.pdf>
Enquiries:
Talvivaara Mining Company Plc. Tel. +358
20 712 9800
Pekka Perä, CEO
Saila
Miettinen-Lähde, CFO
Merlin Tel. +44 20 7726 8400
David Simonson
Anca Spiridon
Financial review
Second quarter
2010
Talvivaara's net sales for nickel and cobalt deliveries to
Norilsk Nickel and for zinc deliveries to Nyrstar during the three months ended
30 June 2010 amounted to EUR 35.2 million (Q2 2009: EUR 1.7 million).
The Group's other operating income mainly from fair value
gains on biological assets (trees) amounted to EUR 1.3 million (Q2 2009: EUR 6.3
million). Other operating expenses amounted to EUR (7.8) million (Q2 2009: EUR
(9.4) million) and included realised losses of EUR (1.1) million on interest
rate swaps. Operating profit for Q2 2010 was EUR 2.5 million (Q2 2009: loss of
EUR 10.1 million). The loss for the period amounted to EUR (16.8) million (Q2
2009: EUR (2.4) million).
Capital expenditure during the quarter totalled EUR 36.3
million (Q2 2009: EUR 28.0 million). The expenditure related primarily to earth
works at the secondary heap foundations, installation of the second production
line at the metals recovery plant, and to the secondary heap stacker and
conveyors.
First half 2010
Talvivaara's net sales during the six months ended 30 June
2010 amounted to EUR 46.9 million (Q1-Q2 2009: EUR 1.8 million). 3,024 tonnes of
nickel, 8,640 tonnes of zinc, and approximately 25 tonnes of cobalt were sold
during the period.
The Group's other operating income mainly from fair value
gains on biological assets (trees) and realised gains on nickel and zinc
forwards amounted to EUR 16.7 million (Q1-Q2 2009: EUR 25.6 million).
Employee benefit expenses including the value of employee
expenses related to the employee share option scheme of 2007 were EUR (9.9)
million (Q1-Q2 2009: EUR (8.1) million). The increase was attributable to the
increased number of personnel.
Other operating expenses amounted to EUR (19.3) million
(Q1-Q2 2009: EUR (15.5) million) and included realised losses of EUR (4.0)
million on interest rate swaps and USD forwards. Operating profit amounted to
EUR 0.2 million (Q1-Q2 2009: loss of EUR 7.9 million).
Finance income for the six month period was EUR 4.9 million
(Q1-Q2 2009: EUR 7.0 million) and consisted mainly of exchange rate gains of EUR
4.8 million on bank accounts. Finance costs of EUR (50.3) million (Q1-Q2 2009:
EUR (13.8) million) were caused by exchange rate losses of EUR (41.5) million on
the USD 320 million Project Term Loan Facility and on the USD 335 million
Nyrstar advance payment as well as interests of EUR (8.5) million on
borrowings.
The Company's loss for the period amounted to EUR (33.7)
million (Q1-Q2 2009: EUR (11.2) million). The total comprehensive income for the
first half of 2010 was EUR (39.6) million (Q1-Q2 2009: EUR (58.6) million),
including a reduction in hedge reserves resulting from the occurrence of the
hedged sales.
Capital expenditure during the first half of 2010 totalled
EUR 55.3 million (Q1-Q2 2009: EUR 57.7 million). The expenditure related
primarily to the construction of heap foundations, installation of the second
production line of the metals recovery plant, and to the secondary heap stacker
and conveyors. On the consolidated statement of financial position as at 30 June
2010, property, plant and equipment totalled EUR 663.2 million (31 December
2009: EUR 644.4 million).
During 2008-2009, Talvivaara Infrastructure Oy constructed a
new railhead connecting the mine site with the national railway grid. As of 30
June 2010, the railway has been classified to assets held for sale. Property,
plant and equipment was reduced by EUR 39.4 million due to the
reclassification.
In the Group's assets, inventories amounted to EUR 136.8
million on 30 June 2010 (31 December 2009: EUR 109.5 million). The nickel, zinc
and USD forwards were closed in Q1 2010 and as at 30 June 2010 the derivative
financial instruments consisted of interest rate swaps, which were valued at EUR
(2.4) million (derivative financial assets on 31 December 2009: EUR 33.1
million). Cash and cash equivalents totalled EUR 35.4 million (31 December 2009:
EUR 11.9 million).
In equity and liabilities, the total equity amounted to EUR
369.9 million on 30 June 2010 (31 December 2009: EUR 382.6 million), including
approximately EUR 25 million from a perpetual capital loan. A total of 135,000
new shares were subscribed and paid for during the first half of 2010 under the
company's stock option rights 2007A and the entire subscription price of 0.4
million was recognized in equity.
Borrowings decreased from EUR 438.1 million on 31 December
2009 to EUR 226.2 million on 30 June 2010, reflecting the repayment of a USD 320
million Project Term Loan Facility in February 2010. Talvivaara received a total
of EUR 292 million in advance payments during the period, comprising USD 335
million for the Zinc in Concentrate Streaming Agreement with Nyrstar NV, and EUR
20 million paid by the Finnish State as an advance payment for the redemption of
the Talvivaara-Murtomäki railway. In short-term liabilities, accounts payable
amounted to EUR 31.6 million (31 December 2009: EUR 29.7 million) and other
payables amounted to EUR 39.8 million (31 December 2009: EUR 9.9 million). Other
payables included a factoring debt of EUR 27.5 million relating to nickel and
cobalt sales to Norilsk Nickel.
Total equity and liabilities as at 30 June 2010 amounted to
EUR 963.8 million (31 December 2009: EUR 879.0 million).
Currency and commodity hedges and hedge
accounting
In connection with the repayment of the USD 320 million
Project Term Loan Facility in February 2010, the Group closed all of its
commodity and foreign exchange risk hedging positions realising net proceeds of
EUR 46.0 million. Cash flows from operating activities were positive due to the
closing of the hedges.
Financing
On 30 June 2010, Talvivaara signed a EUR 100 million
three-year revolving multicurrency credit facility with Nordea Bank,
Handelsbanken and Sampo Bank. The facility has a margin of 300 bps until 31
December 2010 and thereafter a varying margin of 175-300 bps depending on the
Company's leverage ratio. The facility is intended for general corporate
purposes.
In June, Talvivaara also signed a EUR 10 million investment
and working capital facility with Finnvera Plc. with an eight-year maturity and
a margin of 4.1%.
In June, the Finnish Government paid the first 50%
installment towards the EUR 40 million (0% VAT) reimbursement granted for the
Talvivaara-Murtomäki railroad. The installment was used in its entirety to
partially repay the EUR 41.0 million loan facility drawn down by Talvivaara
Infrastructure Oy to finance the construction of the railroad.
In February 2010, Talvivaara completed a Zinc in Concentrate
Streaming Agreement with Nyrstar NV. For the agreement, Nyrstar paid a USD 335
million advance payment, the majority of which was used to completely pre-pay
the USD 320 million Project Term Loan Facility.
In February 2010, Talvivaara also drew down a EUR 25 million
perpetual capital loan, which is recognized in equity according to IFRS, and a
EUR 5 million convertible loan from Outokumpu Mining Ltd.
Commercial arrangements
In addition to its financing component, Talvivaara's
agreement with Nyrstar also formed a significant commercial arrangement between
the parties. The key commercial terms of the Nyrstar agreement included
Talvivaara's obligation to deliver all of its zinc in concentrate production to
Nyrstar until a total of 1,250,000 metric tonnes has been delivered (equivalent
to approximately 2 million tonnes of zinc concentrate at a grade of 65%). Based
on Talvivaara's production plans, the deliveries are expected to occur over a
period of 10-15 years. Deliveries commenced in March 2010.
In
addition to the USD 335 million advance payment, Nyrstar pays Talvivaara an
extraction and processing fee of EUR 350 per tonne of zinc in concentrate
delivered (with escalators in relation to prices of elemental sulphur and
propane). The Parties have also agreed the following price participation:
until the later of
the seventh anniversary of the agreement or delivery of 600,000 tonnes of zinc
in concentrate, Nyrstar will pay to Talvivaara 10% of the LME zinc price
exceeding USD 2,500 per tonne (up to USD 3,000 per tonne), and 30% of the LME
zinc price exceeding USD 3,000 per tonne; and
thereafter, Nyrstar will pay to
Talvivaara 30% of the excess of the LME zinc price above the processing fee of
EUR 350 per tonne of zinc in concentrate.
Nyrstar has also agreed to supply to Talvivaara up to 150,000
tonnes of sulphuric acid per annum for use in Talvivaara's leaching process
during the period of supply of the zinc in concentrate.
Production review
Production ramp-up at the Talvivaara mine made significant
progress during the second quarter despite some continued production
restrictions due to the hydrogen sulphide odour. New production records were set
by all departments in April-June and payable metals production for the period
amounted to 2,729 t (Q2 2009: 298 t) of nickel and 5,575 t (Q2 2009: 706 t) of
zinc. The corresponding figures for the half year were 3,339 t (Q1-Q2 2009: 460
t) for nickel and 8,535 t (Q1-Q2 2009: 706 t) for zinc.
The mining department increased its output both for ore and
for waste rock compared to the first quarter as well as all earlier periods. The
ore mined in the second quarter amounted to 3.5 Mt (Q2 2009: 2.4 Mt) and during
the half year to 6.6 Mt (Q1-Q2 2009: 6.3 Mt). The waste mining was primarily
targeted at providing material for levelling the ground for the secondary heap
foundations, while increased ore mining was budgeted as part of the ongoing
production ramp-up.
In materials handling, the amount of crushed and stacked ore
in the second quarter was 3.7 Mt, hence exceeding the previous quarter's output
of 3.3 Mt. The crushing output on a daily level already exceeded the volumes
needed for the targeted full scale production of 22-24 million tonnes per year,
but the availability of the circuit was not yet sufficient to maintain such
levels for extended periods of time. In order to overcome this limitation, two
additional crushers in the tertiary crushing stage were installed in June, with
further increase in crushing volumes expected in the third quarter.
Bioheapleaching progressed in line with expectations with
primary heap section 2 providing most of the leach solution treated at the
metals recovery plant during the second quarter. Construction of heap section 3
was completed in early June and stacking of heap section 4 commenced thereafter.
Heap section 1, which has suffered from back-precipitation of metals, is being
turned over by excavators in order to increase metal grades in solution obtained
from this section. This procedure is improving the solution grades and some
solution from heap section 1 is being used for metals recovery since June.
Construction of the secondary heap foundations continued throughout the second
quarter with the target of commissioning the reclaiming and secondary stacking
systems in October 2010, as planned.
A major milestone was achieved in metals recovery with the
commissioning of the second production line in June. With experience gained from
operating the first line, many of the technical issues that had affected the
start-up of the first line had been fixed for the second one, making its
commissioning relatively uneventful.
Metals recovery rates continued to be affected by the
hydrogen sulphide odour that occasionally spreads to nearby communities.
Measures were taken to improve the gas scrubbing capacity, and the situation
improved towards the end of the second quarter to a level that allows normal
operation of both production lines. However, installation of additional gas
scrubbing capacity continues during the third quarter in order to build
sufficient buffer into the system such that also occasional higher discharge
levels can be satisfactorily handled.
Operating expenses during the half year were materially in
line with the budget.
Production
key figures
Production Figures
Q2
Q2
Q1-Q2
Q1-Q2
Q1-Q4
2010
2009
2010
2009
2009
Mining
Blasted ore
million tonnes
3.5
2.4
6.6
6.3
10.8
Excavated waste
million tonnes
4.1
0.9
6.5
1.8
4.3
Materials handling
Stacked ore
million tonnes
3.7
2.1
7.0
4.0
8.5
Bioheapleaching
Ore in primary heap
million tonnes
18.0
6.5
18.0
6.5
11.0
Metals recovery
Nickel sulphide production
dry metric tonnes
5,266
402
6,485
460
1,525
Nickel
metal content
tonnes
2,729
198
3,339
224
735
Zinc
sulphide production
dry
metric tonnes
8,616
794
13,542
1,254
5,271
Zinc metal content
tonnes
5,575
538
8,535
706
3,133
Permitting process ongoing for the
extraction of uranium as a by-product
In February, Talvivaara announced its intention to initiate
the recovery and exploitation of uranium as a by-product. The Company plans to
recover uranium in the form of a uranium intermediate, yellow cake, from its
main leaching process by using a safe and technically simple solvent extraction
process which is widely applied to metals recovery.
The planned investment in the solvent extraction plant is
estimated at approximately EUR 30 million. Annual production costs are estimated
at approximately EUR 2 million and the annual production volume at approximately
350 tonnes.
On 20 April 2010, Talvivaara Sotkamo Ltd lodged an
application in accordance with the Nuclear Energy Act to the Ministry of
Employment and Economy for the extraction of uranium as a by-product. The
Environmental Impact Assessment relating to the uranium extraction process also
commenced at the mine site during the period.
Talvivaara has initiated discussions with leading companies
in the industry regarding a potential cooperation for the uranium production and
sales. The financing and operating model for operation will be determined based
on agreement with the eventual partner.
Environment, health and safety
Safety among the Talvivaara personnel was good during the
second quarter, as no Lost Time Injuries (LTI's) were suffered. The number of
LTI's during the half year was five. The LTI frequency at the end of June was 17
accidents per million hours worked year to date and 14 during the last 12
months.
Planning and implementation of the ISO 14001 Environmental
Management System continued during the first half of the year with the target of
having the system audited by the end of 2010.
Talvivaara commenced research work relating to the Global
Reporting Initiative, GRI, as part of its quest to improve its sustainability
reporting. The Company also participated the Carbon Disclosure Project.
Personnel
The number of personnel on 30 June 2010 was 382 (Q2 2009:
276), up by 46 from 336 on 31 March 2010 (Q1 2009: 272) and by 74 from 308 at
the end of 2009. The average number of employees during the first half of 2010
was 344 (Q1-Q2 2009: 268). In addition, Talvivaara employed over 30 trainees
during the summer of 2010.
Wages and salaries paid during the half year totalled EUR 8.4
million (Q1-Q2 2009: EUR 6.9 million).
Eeva Ruokonen,
MSc(Mining), Lic.Tech.(Mineral Processing) was appointed Chief Sustainability
Officer and member of the Company's Executive Committee from the beginning of
February 2010.
Annual General Meeting
Talvivaara held its Annual General Meeting on 15 April 2010.
The resolutions of the AGM included:
that the number of
Board members be changed to eight and that Mr. Gordon Edward Haslam, Mr. D.
Graham Titcombe, Ms. Eileen Carr, Mr. Eero Niiva, Ms. Saila Miettinen-Lähde,
and Mr. Pekka Perä be re-appointed as directors of the Company, and that Mr.
Roland Junck and Mr. Tapani Järvinen be appointed as new directors of the
Company;
that article 5 of the Company's
articles of association be amended to provide for a retirement of all the
members of the Board of Directors at each Annual General Meeting of
Shareholders;
that article 12 of the Company's
articles of association be amended so that the shareholders are convened to the
Annual or Extraordinary Shareholders' Meeting by a notice sent at the earliest
three (3) months and at the latest twenty-one (21) days before the meeting,
however, at the minimum nine (9) days before the record date of the
Shareholder's' Meeting. Further, to be allowed to take part in a Shareholders'
Meeting a shareholder must register with the Company at the latest by the date
mentioned in the notice convening the meeting and which date may not be earlier
than ten (10) days before the Shareholders' Meeting; and
that the Board of Directors be
authorised to decide on repurchasing a maximum of 10,000,000 of the Company's
own shares through public trading, and to decide on conveying a maximum of
10,000,000 of the Company's own shares, each in deviation of the pre-emptive
rights of shareholders.
Risks and uncertainties
In line with current corporate governance guidelines on risk
management, Talvivaara carries out an ongoing process endorsed by the Board of
Directors to identify risks, measure their impact against certain assumptions
and implement the necessary proactive steps to manage these risks.
Talvivaara's operations are affected by various risks common
to the mining industry, such as risks relating to the development of
Talvivaara's mineral deposits, estimates of reserves and resources,
infrastructure risks, and volatility of commodity prices. There are also risks
related to currency exchange ratios, management and control systems, historical
losses and uncertainties about the future profitability of Talvivaara,
dependence on key personnel, effect of laws, governmental regulations and
related costs, environmental hazards, and risks related to Talvivaara's mining
concessions and permits.
In the short term, Talvivaara's key operational risks relate
to the ongoing ramp-up of operations. While the Company has demonstrated that
all of its production processes work and can be operated on an industrial scale,
the rate of ramp-up is still subject to risk factors, including various
technical and operational risks, that are currently unknown or beyond the
Company's control.
The market price of nickel is, together with production
volumes, the main determinant of Talvivaara's revenues. The volatility of nickel
price has historically been high and it is in the Company's view likely that the
volatility will continue also in the future. Talvivaara is, since February 2010,
unhedged against variations in metal prices, which means that nickel price
volatility will have a substantial effect on the Company's revenues and result.
Full or substantially full exposure to nickel prices is in line with
Talvivaara's strategy and supported by the Company's view that it can operate
the Talvivaara mine profitably also during the lows of commodity price
cycles.
Talvivaara's revenues are determined mostly in US dollars,
whilst the majority of the Company's costs are incurred in Euro. Potential
strengthening of the Euro against the US dollar could thus have a material
adverse effect on the business and financial condition of the Company.
Talvivaara is, since January 2010, unhedged against the currency exchange risk
relating to the US dollar. The Company considers its unhedged position justified
for the time being, but it may hedge against currency exchange volatility at
least on a case by case basis going forward.
Shares and shareholders
The number of shares issued and outstanding and registered on
the Euroclear Shareholder Register as of 30 June 2010 was 245,180,718. Including
the effect of the convertible bond of 14 May 2008 and the Option Scheme of 2007,
the authorised full number of shares of the Company amounted to 263,669,291 at
the end of the period.
A total of 135,000 Talvivaara Mining Company Plc's new shares
were subscribed and paid for during the period between 1 April 2010 and 30 June
2010 under the Company's stock option rights 2007A. The entire subscription
price of EUR 350,212.33 was entered into the invested unrestricted equity
reserve and the share issue reserve and a total of 2,198,100 stock option rights
2007A remain unexercised.
The share subscription period for stock options 2007A
commenced on 1 April 2010 and ends on 31 March 2012.
As at 30 June 2010, the shareholders who held more than 5% of
the shares and votes of Talvivaara were Pekka Perä (23.3 %), Varma Mutual
Pension Insurance Company (8.6%), and BlackRock Investment Management Ltd
(6.2%).
Events after the review period
Draw downs from committed
loan facilities
On 9 July 2010, Talvivaara drew down
the EUR 10 million investment and working capital facility signed with Finnvera
Plc in June.
On 10 August 2010, Talvivaara drew down EUR 30 million of the
EUR 100 million revolving corporate facility signed in June.
Registration of shares
subscribed under Talvivaara's stock option rights 2007A
131,000 of the 135,000 total shares subscribed during the period ending 30
June 2010 were entered into the Trade Register on 14 July 2010, as of which date
the new shares have established shareholder rights. As a result of the share
subscriptions, the number of Talvivaara Mining Company Plc shares increased to
245,311,718.
Short-term outlook
Talvivaara anticipates its production ramp-up to continue
towards the ca. 15,000 t production target for nickel during the current year.
While the newer heap sections are contributing to metals recovery as expected,
it appears likely that the majority of the back-precipitated metal in the first
heap section will only be recovered in secondary leaching which will gradually
start during Q4 2010. Therefore, the contribution of the first heap section to
the current year's metal production will remain relatively small, but is
expected to play a role in the later stages of ramp-up towards the full scale
production of ca. 50,000 t of nickel in 2012.
The nickel fundamentals have improved during the early part
of 2010 and this development is expected to continue into the latter part of the
year, driven in part by recovery in the stainless steel markets. The 30% drop in
LME nickel inventories from the peak of 166,000 t in February to around 116,000
t in mid August also speaks for a normalisation in the supply-demand ratio.
The improving underlying demand is anticipated to support the
nickel price in its recent range of around USD 19,000 - 22,000 per tonne, but a
relatively high degree of volatility driven by financial investors and mixed
macroeconomic data is likely to remain.
Espoo 25 August 2010
Talvivaara Mining Company Plc
Board of
Directors
CONSOLIDATED INCOME STATEMENT
(all amounts in EUR '000)
Unaudited
three
months to
30 Jun 10
Unaudited
three
months to
30 Jun 09
Unaudited
six
months to
30 Jun 10
Unaudited
six
months to
30 Jun 09
Audited
twelve
months to
31 Dec 09
Net sales
35,248
1,652
46,854
1,778
7,571
Other operating income
1,283
6,296
16,711
25,553
43,118
Changes in
inventories of
finished goods and work in progress
13,084
17,795
32,159
32,077
75,587
Materials and
services
(21,439)
(13,869)
(41,369)
(27,504)
(65,156)
Personnel expenses
(5,004)
(4,282)
(9,856)
(8,065)
(17,695)
Depreciation, amortization,
depletion and impairment charges
(12,786)
(8,351)
(25,032)
(16,219)
(37,061)
Other operating
expenses
(7,843)
(9,369)
(19,268)
(15,525)
(61,140)
Operating profit (loss)
2,543
(10,128)
199
(7,905)
(54,776)
Finance income
3,713
14,462
4,864
7,013
11,526
Finance cost
(28,988)
(7,201)
(50,316)
(13,797)
(31,835)
Finance cost
(net)
(25,275)
7,261
(45,452)
(6,784)
(20,309)
Loss before income tax
(22,732)
(2,867)
(45,253)
(14,689)
(75,085)
Income tax expense
5,968
507
11,553
3,491
20,127
Profit (loss) for
the period
(16,764)
(2,360)
(33,700)
(11,198)
(54,958)
Attributable to:
Equity holders of the Company
(15,025)
(1,943)
(28,886)
(9,105)
(45,267)
Minority interest
(1,739)
(417)
(4,814)
(2,093)
(9,691)
(16,764)
(2,360)
(33,700)
(11,198)
(54,958)
Earnings per share for profit
(loss) attributable to the equity
holders of the Company (expressed in per
share)
Basic and diluted
(0.06)
(0.01)
(0.12)
(0.04)
(0.19)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
(all amounts in EUR '000)
Unaudited
three
months to
30 Jun 10
Unaudited
three
months to
30 Jun 09
Unaudited
six
months to
30 Jun 10
Unaudited
six
months to
30 Jun 09
Audited
twelve
months to
31 Dec 09
Profit (loss) for the
period
(16,764)
(2,360)
(33,700)
(11,198)
(54,958)
Other comprehensive
income,
items net of tax
<b