Press Release

World Zinc Price drops 22% Results in a Q1 net loss of 5.98 million Baht for Padaeng

In its report to the Stock Exchange of Thailand, Padaeng Industry Public Company Limited announces consolidated total revenue of 1,124.74 million Baht, a decrease of 262.72 million Baht or 18.94% from the previous year. The company registered a net loss of 5.98 million Baht, equivalent to a net loss of 0.03 Baht per share, compared to a net profit of 1.19 Baht per share in the same quarter last year.

The most significant contributing factor to the company’s decline in revenue is the continuous drop in world LME zinc price, which averaged US$ 794 in Q1, a decrease of US$226 or 22% from its average in Q1 2001. A sluggish global economy and an oversupply of zinc metal are reasons for the dramatic drop. Current LME zinc metal stock levels stand at 580,000 metric tons, up 150,000 metric tons since the end of December 2001.

The annual maintenance shutdown at the Calcine plant in Rayong province and a major overhaul of machinery at the Zinc Smelter in Tak province, together cost the company a total of 55.8 million Baht in expenses, incurred in Q1, significantly more than last year’s expense of 7.5 million Baht.

Nevertheless, even with the plant shutdown during maintenance and repairs, zinc metal production volume in Q1 2002 increased over the same period last year by 588 metric tons, totaling 25,491 metric tons. Moreover, sales of zinc metal to customers totaled 26,059 metric tons, similar to Q1 2001 levels.

Established on April 10, 1981, Padaeng Industry Public Co., Ltd. is the sole zinc smelter in Southeast Asia with annual production capacity of 100,000 metric tons.