PASMINCO FLAGS LOWER SECOND HALF EARNINGS

Pasminco today advised that earnings for the second half of the 1999/00 financial year were expected to fall short of the result for the first half of the current year.

While the full year performance is expected to be an improvement on the 1998/99 result, the Company said that the continued good performance from the Hobart and Budel smelters and the Rosebery mine would be offset by under-performance at the Cockle Creek smelter and the Broken Hill and Elura mines.

As advised in the March quarterly production report, lower ore grades have been experienced at Broken Hill and ore throughput at Elura has been below expectations. Cockle Creek metal production has been impacted by a planned shutdown to improve environmental performance and by the failure of a refining column in April, which together have resulted in the loss of seven weeks production.

Revenue has benefited from the weaker Australian dollar but this has been offset to some extent by higher debt servicing costs and foreign exchange losses incurred through loan repayments and by the Company’s currency option program.

The company also advised today that in the current investment climate it had decided to retain its 49% interest in the Ernest Henry copper/gold mine in Queensland for the time being and re-finance that investment. The Ernest Henry mine continues to contribute positively both from a profit and cash perspective.

The Century mine ramp up is exceeding expectations and it is expected to break-even in the current half. At the Budel smelter in the Netherlands, the conversion to Century concentrates is progressing well, with the plant now processing 70% Century concentrates. A saleable silver-lead product is being produced instead of jarosite.

For further information contact:

Trevor Shard
Group Manager - Investor Relations
61 3 9288 9186 or 0419 584515

Peter Griffin
Group Manager - Public Affairs
61 3 9288 0463 or 0419 314 265

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