JSC CHELYABINSK ZINC PLANT: 2012 IFRS Results
For Immediate Release - April 18, 2013
Chelyabinsk Zinc Plant Announces 2012 Audited IFRS Results Chelyabinsk, Russia - April 18, 2013 - Chelyabinsk Zinc Plant (LSE, MICEX: CHZN), Russia's largest producer of zinc and zinc alloys, is pleased to announce its audited consolidated IFRS financial results for year ended December 31, 2012. 2012 HIGHLIGHTS * Chelyabinsk Zinc Plant's (CZP) revenue for 2012 totaled RUB 13,077 mln compared to RUB 12,772 mln for the previous year. * 2012 EBITDA amounted to RUB 1,499 mln or 11% of revenue compared to 2011 EBITDA of RUB 2,194 mln or 17% of revenue. * Net profit for 2012 was RUB 529 mln compared to RUB 1,038 mln for 2011. 2012 Consolidated financial results (in millions of Russian Roubles) 2012 2011 Change, %
Revenue 13,077 12,772 2%
Gross profit 2,291 2,869 (20%)
Gross margin, % 18% 22%
EBITDA (1) 1,499 2,194 (32%)
EBITDA margin, % 11% 17%
Profit before income tax 655 1,303 (50%)
Net profit 529 1,038 (49%)
Net margin, % 4% 8%
(1) EBITDA, for any relevant period, represents operating profit before interest, tax, depreciation and amortization.
EBITDA is not a measurement of CZP's operating performance presented in the financial information, prepared in accordance with IFRS, and should not be considered as an alternative to operating profit or any other performance measure derived in accordance with IFRS.
Consolidated revenue for 2012 increased by 2% to RUB 13,077 mln as compared to 2011.
The average LME zinc price in 2012 decreased by 11% as compared to the previous year, and amounted to US$ 1,946/tonne. The average LME lead quotes decreased by 14% to US$ 2,061/tonne. The negative effect of the LME prices falldown was partly compensated by the 5.8% growth of Russian Rouble/US Dollar average exchange rate.
(in millions of Russian Roubles) 2012 2011 Change, %
Zinc and zinc alloys 9,428 9,040 4%
CZP 7,590 7,074 7% Brock Metal 1,838 1,966 (7%)
Zinc tolling 1,298 1,666 (22%)
Lead concentrate 591 480 23%
CZP 174 246 (29%) Nova Zinc 417 234 78%
Other products 1,760 1,586 11%
Total revenue 13,077 12,772 2%
In 2012, CZP's revenue from sale of zinc and zinc alloys increased by 7% to RUB 7,590 mln, as compared to the relevant period of 2011. Increase of revenue was due to 15% increase of sales on the domestic market (2012: 111.1 thousand tonnes; 2011: 97.0 thousand tonnes). The increase of revenue was partly offset by 11% decrease of the average LME zinc price.
Revenue of The Brock Metal Company Limited for 2012 amounted to RUB 1,838 mln, 7% lower than in 2011. This decrease was due to 11% decrease of the average LME zinc price.
In 2012, CZP received revenue of RUB 1,298 mln under tolling agreement, which is 22% lower compared to 2011. The decrease of tolling's volume (2012: 48.1 thousand tonnes; 2011: 61.7 thousand tonnes) was due to growth of zinc and zinc alloys sales on the domestic market.
Revenue from lead concentrate sales for 2012 amounted to RUB 591 mln (2011: RUB 480 mln). In 2012, Nova Zinc shipped 7.2 thousand dry metric tonnes of lead concentrate from the balance at the beginning of year, 85% more than in 2011 (3.9 thousand dmt). The sales increase was due to the recovery of Chinese demand. The increase of revenue was partly offset by 14% decrease of the average LME lead price.
In 2012, revenue from CZP's other products increased by 11% to RUB 1,760 mln as compared to 2011. It was mainly due to the increase of volume sales of zinc sulphate, indium and prices growth of sulphuric acid.
Cost of Sales
(in millions of Russian Roubles) 2012 2011
Raw materials, consumables used in 6,178 5,509 production and semi-finished goods
Utilities and fuel 2,070 2,011
Depreciation and amortisation 924 806
Staff cost 848 756
Repairs and maintenance 652 652
Mineral extraction tax 186 204
Cost of goods and material for 118 109 resale
Production overheads 99 99
Change in finished goods 17 (42)
Impairment of assets 5 9
Inventory provision 2 14
Stock-take results adjustment - (79)
Change in work-in-progress (313) (145)
Cost of sales 10,786 9,903
In 2012, cost of sales amounted to RUB 10,786 mln, which is 9% higher compared to 2011.
Cost of materials and consumables used primarily comprises the cost of zinc concentrate, zinc containing raw materials, materials for alloys production and auxiliary materials used in the production process. The increase by 12% was due to the changes of raw materials structure (the growth of usage of import zinc concentrate), and also to the increase of auxiliary materials prices.
In 2012, costs of utilities and fuel increased by 3% to RUB 2,070 mln. This increase was due to the growth of diesel fuel prices in Kazakhstan (2012: 100 KZT/l; 2011: 89 KZT/l).
Staff costs increased by 12% as compared to the relevant period of the previous year, to RUB 848 mln. The increase was due to the growth of average salaries.
Net profit for 2012 totalled RUB 529 mln compared to RUB 1,038 mln for 2011.
The full text of audited consolidated financial statements under IFRS for 2012 is available on the Company's website at www.zinc.ru.
CZP will host an Investor Conference Call to discuss its IFRS financial statements and comment on current operations, today, April 18, 2013 at 02 pm Moscow time (11 am London time). Media are invited to attend on a listen-only basis.
To participate in the conference call dial one of the dial-in numbers as follows:
+7 (495)-580-9543 (toll-free Russia), or
44-20-7190-1596 (local access from the UK), or
0800-358-5271 (toll-free from the UK), or
1-480-629-9822 (local access from USA), or
1-877-941-6013 (toll-free from USA).
or follow the link:
Conference ID: 4614774
Conference Title: 2012 IFRS Results
Please be prepared to introduce yourself to the moderator or register.
The recording of the conference call and the presentation will be available on CZP's web-site (www.zinc.ru) in the Investor Relations section.
About Chelyabinsk Zinc Plant
Chelyabinsk Zinc Plant is the leading Russian zinc producer. In 2012 the plant produced 160,002 tonnes of salable SHG zinc.
According to consolidated IFRS accounts, revenue in 2012 was RUB 13,077 mln and EBITDA was RUB 1,499 mln.
Ordinary shares of CZP are traded on the MICEX exchange under ticker CHZN and Global Depository Receipts (GDR) are traded on the London Stock Exchange under ticker CHZN.
Investor and Media Contacts: Natalya Vasilieva, PR, firstname.lastname@example.org Tel: +7 (351) 799-01-52 Evgeny Ponomarev, IR, email@example.com Tel: +7 963 998-55-58 This announcement may include forward-looking statements. CZP's actual results may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. By their nature, forwarding-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Even if the actual results are consistent with the forward-looking statements contained in this announcement, those results may not be indicative of results or developments in future periods. CZP does not undertake any obligation to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this announcement. END -0- Apr/18/2013 06:00 GMT