Press Release

Padaeng reports operating results for 2002

In its end of the year 2002 financial statements to the Stock Exchange of Thailand, Padaeng Industry Public Company Limited reports that due to improved production efficiency and reduced operating cost, the company expanded its total zinc metal production to 105,148 metric tons and raised total zinc metal sales to 105,945 metric tons, a slight increase from year 2001. In addition, the company was successful in increasing its domestic sales ratio from 75 percent to 81 percent of total sales in 2002. However, the company’s total revenues and operating performance for the year were lower than expected because of the continued decline in world zinc metal price, from an average of $US 886 per metric ton in 2001 to an average of only $US 779 per metric ton in 2002, together with a lower treatment charge received from raw material suppliers and impact from the appreciated Thai Baht againt Us dollar, by approximately 3 percent, compared to the previous year.

As a result, consolidated financial statements show total revenues from sales to be 4,389.5 million Baht, a decline of 15.54 percent from sales of 5,197.4 million Baht in 2001. In turn, the company registered a net loss of 29.1 million Baht or a net loss of 0.13 Baht per share, compared to an earning per share of 1.48 Baht last year.

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 approximately 100,000 metric tons.