Report to SET

14/May/03
Clarification on the companyís performance in the first quarter of 2003


Attached please find a copy each of Thai and English version of the reviewed company only interim financial statements and consolidated interim financial statements of Padaeng Industry Public Company limited for the quarter ended 31 March 2003 for the SETís information.

From the companyís statement of income on Equity Method, the companyís total revenues from sales and services was Bt1,135.5m which increased from the same quarter of year 2002 by Bt20.6m or 1.8% increased. There was net gain of Bt33.7m or a net gain per share of Bt0.15 compared to a loss per share of Bt0.02 in the same period of year 2002.

From the companyís consolidated statement of income, total revenues from sales and services was Bt1,138.2m which increased by Bt20.6m or 1.8% from the same quarter of last year. There was net gain of Bt32.7m or a net gain per share of Bt0.14 compared to a loss per share of Bt0.03 in the same quarter of year 2002.

The average Zinc price of $785/MT on the first quarter 2003 was further reduced by 1.25% compared to previous year. Our local currency expressed vs USD was stronger by 2.15%. Thanks to the good support of the domestic market, the company could nevertheless increase itís sales of metal up to 27,565 MT compared to 26,059 MT on the previous year. The Company consumed more of its own raw material and so could rely less on the import of concentrates.

It has to be reminded that in the first quarter 2002, the Company booked a non recurrent provision of Bt20.0m for restoration of its ponds.