JSC CHELYABINSK ZINC PLANT: Correction : Q1 2013 Financial Results

JSC CHELYABINSK ZINC PLANT: Correction : Q1 2013 Financial Results
Misprint in the headline of the Release. 


                                 NEWS RELEASE                                  
                                          For Immediate Release - 07 June, 2013
    Chelyabinsk Zinc Plant Announces Q1 2013 Consolidated Financial Results    

Chelyabinsk, Russia - June 07, 2013 - Chelyabinsk Zinc Plant (LSE, MICEX:
CHZN), Russia's largest producer of zinc and zinc alloys, is pleased to
announce its consolidated financial results for the three months ended March
31, 2013 based on consistent accounting policy (Unaudited).

Q1 2013 HIGHLIGHTS

  * Chelyabinsk Zinc Plant's (CZP) revenue totalled RUB 3,178 mln. 
      * EBITDA amounted to RUB 289 mln or 9% of revenue.
      * Net profit was RUB 74 mln.
    Consolidated financial results

(in millions of Russian Roubles)          Q1          Q1       Change, % 
                                                                         
                                         2013        2012                


                                                                     
Revenue                                 3,178        3,256       (2%)     
                                                                     
Gross profit                             444          627        (29%)    


                                                                         
                     Gross margin, %          14%         19%            


                                                                     
EBITDA (1)                               289          531        (46%)    


                                                                         
                    EBITDA margin, %           9%         16%            


                                                                     
Profit before income tax                  83          347        (76%)    
                                                                     
Net profit                                74          271        (73%)    
                                                                      


                       Net margin, %           2%          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 or other relevant financial framework.

Revenue

Q1 2013 consolidated revenue decreased by 2% to RUB 3,178 mln as compared to Q1
2012.

The average LME zinc price in Q1 2013 stayed at the level of Q1 2012 and
amounted to US$ 2,033/tonne. The average LME lead quotes increased by 10% to
US$ 2,301/tonne.

Revenue structure

(in millions of Russian Roubles)          Q1          Q1       Change, % 
                                                                         
                                         2013        2012                


                                                                     
Zinc and zinc alloys                    2,338        2,212        2%      


                                                                         
                                 CZP        1,895       1,645         15%
                                                                         
                         Brock Metal          443         567       (22%)


                                                                     
Zinc tolling                             231          411        (44%)    
                                                                     
Lead concentrate                          84          216        (61%)    


                                                                         
                                 CZP           25          42       (41%)
                                                                         
                           Nova Zinc           59         174       (66%)


                                                                     
Other products                           525          417         26%     
                                                                     
Total revenue                           3,178        3,256       (2%)     
In Q1 2013, CZP's revenue from sale of zinc and zinc alloys increases by 15% as
compared to the Q1 2012 and amounted to RUB 1,895 mln. Increase of the revenue
was due to the growth of sales on the domestic market by 12% (Q1 2013: 27.1
thousand tonnes; Q1 2012: 24.2 thousand tonnes). 
Revenue of The Brock Metal Company Limited for Q1 2013 amounted to RUB 443 mln,
22% lower than in Q1 2012. This decrease was due to 22% decrease of zinc alloys
sales (Q1 2013: 6.0 thousand tonnes; Q1 2012: 7.7 thousand tonnes). 
CZP received revenue of RUB 231 mln under tolling agreement in Q1 2013, which
is 44% lower compared to Q1 2012. The decrease of tolling's volume (Q1 2013:
8.5 thousand tonnes; Q1 2012: 15.2 thousand tonnes) was due to growth of zinc
and zinc alloys demand on the domestic market and seasonal fluctuations in
sales under tolling agreement. 
Revenue from lead concentrate sales for Q1 2013 amounted to RUB 84 mln (Q1
2012: RUB 216 mln). The decrease was due to Nova Zinc shipment of 3.0 thousand
dry metric tonnes of lead concentrate in Q1 2012, partly from the 2012 opening
balance (Q1 2013: 1.0 thousand dmt). 
In Q1 2013, revenue from CZP's other by-products increased by 26% to RUB 525
mln as compared to Q1 2012. It was mainly due to the increase of sales of
precious metals and indium. 
Cost of Sales 
(in millions of Russian Roubles)          Q1          Q1      


                                                             
                                         2013        2012    


                                                         
Raw materials and consumables used      1,654        1,449   
in production                                                 
                                                         
Utilities and fuel                       551          507     
                                                         
Depreciation and amortization            222          227     
                                                         
Staff cost                               201          192     
                                                         
Repairs and maintenance                  175          147     
                                                         
Change in work-in-progress               178         (42)     
                                                         
Mineral extraction tax                    44          45      
                                                         
Cost of goods and material for            28          25     
resale                                                        
                                                         
Production overheads                      24          24      
                                                         
Impairment of assets                     (2)           -      
                                                         
Inventory provision                      (9)          (2)     
                                                         
Change in finished goods                (332)         56      
                                                         
Cost of sales                           2,734        2,628    
Cost of materials and consumables used primarily comprises of the cost of zinc
concentrate, zinc containing raw materials, materials for alloys production and
auxiliary materials used in the production process. The increase by 14% was due
to the growth of usage of purchase zinc concentrate instead of tolling's,
changes of raw materials structure (the growth of usage of import zinc
concentrate), and also to the increase of auxiliary materials prices. 
In Q1 2013, costs of utilities and fuel increased by 9% to RUB 551 mln. This
increase was due to the growth of electricity tariffs for CZP (Q1 2013: RUB
2.21 per kWh: Q1 2012: RUB 1.93 per kWh). 
Staff costs increased by 5% as compared to the relevant period of the previous
year, to RUB 201 mln. The increase was due to the growth of average salaries. 
Net profit 
Net profit for Q1 2013 totalled RUB 74 mln compared to RUB 271 mln for Q1 2012. 
About Chelyabinsk Zinc Plant 
Chelyabinsk Zinc Plant is the leading Russian zinc producer. In 2012 the plant
produced 160,002 tonnes of saleable 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 Moscow exchange MICEX-RTS 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, ngv@zinc.ru
                                                        Tel: +7 (351) 799-01-52
                                              Evgeny Ponomarev, IR, eyp@zinc.ru
                                                          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. 

JSC CHELYABINSK ZINC PLANT

Summary Consolidated Statement of Financial Position (unaudited)

In thousands of Russian Roubles                  31 March 2013 31 December 2012


                                                                           
ASSETS                                                                          
                                                                           
Non-current assets                                                              
                                                                           
Property, plant and equipment and advances for       5,180,393        5,311,993
capital construction                                                            
                                                                           
Intangible assets                                       76,782           74,591 
                                                                           
Other non-current assets                               305,883           37,800 
                                                                           
Total non-current assets                             5,563,058        5,424,384 
                                                                           
Current assets                                                                  
                                                                           
Inventories                                          2,075,719        2,012,523 
                                                                           
Trade and other receivables                          2,214,771        1,917,416 
                                                                           
Current income tax prepayments                          66,784           48,277 
                                                                           
Loans issued                                           361,206          354,480 
                                                                           
Short-term financial assets                                  -            3,722 
                                                                           
Bank deposits, restricted cash, cash and cash        1,431,968        1,915,548
equivalents(1)                                                                  
                                                                           
Total current assets                                 6,150,448        6,251,966 
                                                                           
TOTAL ASSETS                                        11,713,506       11,676,350 
                                                                           
EQUITY                                                                          
                                                                           
Share capital                                          127,635          127,635 
                                                                           
Share premium                                        1,375,231        1,375,231 
                                                                           
Legal reserve                                            3,011            3,011 
                                                                           
Hedging reserve                                        (9,297)                - 
                                                                           
Cumulative currency translation reserve              (150,619)        (159,721) 
                                                                           
Retained earnings                                    9,140,335        9,066,144 
                                                                           
TOTAL EQUITY                                        10,486,296       10,412,300 
                                                                           
LIABILITIES                                                                     
                                                                           
Non-current liabilities                                                         
                                                                           
Provision for asset retirement obligations              98,510          107,272 
                                                                           
Deferred income tax liability                          170,722          184,981 
                                                                           
Other non-current liabilities                           54,198           53,783 
                                                                           
Total non-current liabilities                          323,430          346,036 
                                                                           
Current liabilities                                                             
                                                                           
Short-term financial liabilities                         9,297                - 
                                                                           
Accounts payable, accrued expenses and                 698,657          774,633
advances from customers                                                         
                                                                           
Current income tax payable                               2,838            7,188 
                                                                           
Other taxes payable                                    192,988          136,193 
                                                                           
Total current liabilities                              903,780          918,014 
                                                                           
TOTAL LIABILITIES                                    1,227,210        1,264,050 
                                                                           
TOTAL LIABILITIES AND EQUITY                        11,713,506       11,676,350 
 1. Including bank deposits at amount of RUB 1,146,405 thousand (RUB 1,489,345 


    thousand as at 31 December 2012), restricted cash at amount of RUB 927
    thousand (RUB 817 thousand as at 31 December 2012), cash and cash
    equivalents at amount of RUB 284,636 thousand (RUB 425,386 thousand as at
    31 December 2012).
    JSC CHELYABINSK ZINC PLANT

Summary Consolidated Statement of Income (unaudited)

In thousands of Russian Roubles                      Three months ended        
                                                                               
                                                 31 March 2013    31 March 2012


                                                                           
Revenue                                              3,177,815        3,255,744 
                                                                           
Cost of sales                                      (2,734,133)      (2,628,454) 
                                                                           
Gross profit                                           443,682          627,290 
                                                                           
Distribution costs                                   (160,514)        (128,933) 
                                                                           
General and administrative expenses                  (190,745)        (180,741) 
                                                                           
Taxes other than on income                            (32,237)         (30,015) 
                                                                           
Other operating expenses, net                          (7,333)            3,104 
                                                                           
Operating profit                                        52,853          290,705 
                                                                           
Finance income/(costs), net                             38,160           33,727 
                                                                           
Foreign exchange gain/(loss), net                      (7,844)           22,600 
                                                                           
Profit before income tax                                83,169          347,032 
                                                                           
Income tax expense                                     (8,977)         (75,921) 
                                                                           
Profit for the period                                   74,192          271,111 
                                                                           
Profit attributable to:                                 74,192          271,111 
                                                                           
Shareholders of the Company                                                     
                                                                           
Profit for the period                                   74,192          271,111 
                                                                           
Earnings per share - basic and diluted (in                 1,4              5,0
RUB)                                                                            
JSC CHELYABINSK ZINC PLANT 
Summary Consolidated Statement of Cash Flows (unaudited) 
In thousands of Russian Roubles    Three months ended       


                                                                              
                                         31        31                      
                                      March     March                      
                                       2013      2012                      


                                                 
Cash flows from                                      
operating activities                                  
                                                 
Profit before income                 83,168   347,032
tax                                                   
                                                 
Adjustments for:                                      
                                                 
Depreciation and                    236,885   240,526
amortization                                          
                                                 
Net gain on disposal                (7,871)   (8,809)
of property, plant                                   
and equipment                                         
                                                 
Decrease in                         (8,771)   (1,887)
inventory provision                                   
                                                 
Finance income, net                (38,160)  (33,728) 
                                                 
Foreign exchange                      (976)  (46,434)
gain, net                                             
                                                 
Other non-monetary                   39,517     (290)
operating (income)/                                  
expenses, net                                         
                                                 
Operating cash flows                303,792   496,410
before changes in working                            
capital                                               
                                                 
Increase in trade                 (317,074) (518,947)
and other                                            
receivables                                           
                                                 
(Increase)/decrease                (50,649)   114,098
in inventory                                          
                                                 
(Decrease)/increase                (13,890)   282,327
in trade payables                                    
and taxes payable                                     
                                                 
Increase in                           (110)     (127)
restricted cash                                      
balance                                               
                                                 
Cash generated from                (77,931)   373,761
operations                                            
                                                 
Interest paid                         (235)     (264) 
                                                 
Income taxes paid                  (48,428)  (68,771) 
                                                 
Net cash generated                (126,594)   304,726
from operating                                       
activities                                            
                                                 
Cash flows from                                      
investing activities                                  
                                                 
Purchase of                       (227,191) (255,402)
property, plant and                                  
equipment and                                        
intangible assets                                     
                                                 
Purchase of                         (1,531)         -
exploration and                                      
evaluation assets                                     
                                                 
Proceeds from sale                      120       508
of property, plant                                   
and equipment                                         
                                                 
Loans issued                          (145)     (253) 
                                                 
Proceeds from                         1,122     1,056
repayment of loans                                    
                                                 
Interest income received             28,177     8,051 
                                                 
Decrease/(increase)                 350,357 (317,671)
in bank deposits                                      
                                                 
Increase in                       (152,000)         -
long-term bank                                       
deposits                                              
                                                 
Net cash used in                    (1,091) (563,711)
investing activities                                  
                                                 
Cash flows from                                      
financing activities                                  
                                                 
Finance lease payments                    -         - 
                                                 
Net cash used in                          -         -
financing activities                                  
                                                 
Effect of currency                 (13,065)   (4,556)
translation and exchange                             
rate fluctuations on                                 
cash and cash                                        
equivalents                                           
                                                 
Net decrease in cash and          (140,750) (263,541)
cash equivalents                                      
                                                 
Cash and cash                       425,386   539,897
equivalents at the                                   
beginning of the period                               
                                                 
Cash and cash                       284,636   276,356
equivalents at the end                               
of the period                                         
END 
-0- Jun/07/2013 06:44 GMT
 
 
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