Press Release

Padaeng announces 9-month operating performance for 2002

In its report filed to the Stock Exchange of Thailand, Padaeng Industry Public Company Limited announced a 9-month (January-September) net loss of 18.2 million Baht or a net loss of 0.08 Baht per share, according to its consolidated income statement, compared to a net profit of 486.4 million Baht during the same period last year including a profit of 150.9 million Baht registered by the company as a gain from deconsolidation of a subsidiary company.

Sales revenue for the first nine months of the year reached 3,365.1 million Baht, down 649.8 million Baht from last year, or a decrease of 16.2%. The continued low world LME zinc price, which averaged only $US 781 per metric ton over the period, a drop of 15.75% or $US 146 per metric ton, was the main cause of the slump in sales revenue.Miners and smelters throughout the world have felt the repercussions. Despite these difficulties, the company’s total sales volume increased by 3.1% during the 9-month period, to 80,305 metric tons, due to heightened domestic demand for zinc metal. Subsequently, the proportion of domestic zinc sales has risen from 77% to 79%.

Established in Thailand on April 10, 1981, Padaeng Industry Public Company Limited is the sole zinc mining and smelting company in Southeast Asia with an annual production capacity of 100,000 metric tons.