CZP increased its net profit by 441 percent in the 1st quarter

The leading zinc producer in Russia, Chelyabinsk Zinc Plant (CZP), announced a 121 percent increase in revenues to RUB 6.913 billion in the first quarter of 2015 and a 289 percent increase in gross profit to RUB 2.541 billion compared to the same quarter last year. of the year.

CZP's profit before interest, taxes, depreciation and amortization increased by 405 percent to RUB 2.401 billion, with an increase in EBITDA margin to 35 percent in Q1 2015 from 15 percent in Q1 2014. During the reporting period, profit before tax increased by 488 percent and amounted to 2.022 billion rubles, while net profit increased by 441 percent to 1.597 billion rubles compared to the same period a year earlier.

CZP clarified that the revenue growth was driven by an increase in the dollar-to-Russian ruble ratio in Q1 2015 compared to Q1 2014. In addition, the reporting period saw an increase in domestic sales by 42 percent to 29,700 tonnes, compared with 20,900 tonnes achieved in Q1 2014. In the 1st quarter of 2015, CZP's revenue from sales of zinc and zinc alloys increased by 157 percent compared to the 1st quarter of 2014 and amounted to RUB 4,282 million.

Brock Metal Company Limited's revenues for the 1st quarter of 2015 amounted to RUB 1,513 million, which is 150 percent higher than in the 1st quarter of 2014. The increase was driven by an increase in the sterling exchange rate against the Russian ruble and a 39% rise in sales of zinc alloys to 9,600 tonnes.

Revenue from sales of Nova Zinc in Q1 2015 increased by 56 percent compared to Q1 2014, driven by a 62 percent increase in the Kazakhstani tenge against the Russian ruble.

In Q1 2015, CZP's revenue from other by-products increased by 67 percent to RUB 574 million compared to Q1 2014. The main reasons for the revenue growth were sales of accumulated precious metals balances, as well as an increase in prices for zinc sulfate due to the exchange rate.