Stock Exchange Enquiry

RESPONSE TO STOCK EXCHANGE ENQUIRY

Pasminco advises that it has no new information which might affect the value of, or could explain the recent trading in its shares.

As has already been announced, the company’s revenue stream has been adversely impacted by the decline in metal prices. Notwithstanding this impact, Pasminco is able to meet all of its commitments as and when they fall due. The company has already completed all principal loan repayments due this calendar year and is not in breach of any banking covenants. It currently has undrawn facilities of $125 million.

The company is well advanced with a Business Improvement Program announced last December which is delivering substantial cost reductions and production improvement. This initiative will deliver a sustainable improvement in the underlying performance of the business at the rate of $ 100 million per annum by the end of calendar 2001. This plan is already delivering benefits ahead of internal targets. It is unfortunate that the decline in metal prices is distracting from these gains.

Pasminco reported a loss after tax of $37.3 million for the first half, and as flagged to the market in its last quarterly report on 26 April 2001, does not expect to be profitable this financial year. The second half loss is likely to be similar to that of the first half despite the deterioration in the metal process.

The company has already announced a review of each asset in its portfolio with a view to disposing of those that are not capable of generating an adequate return on funds employed. This review is also well advanced and discussions are underway with various parties who have indicated an interest in acquiring some assets from Pasminco. In particular negotiations for the sale of the Broken Hill Mine have already commenced.

The company continues to concentrate its efforts towards delivering improved production and reduced costs. The Century Mine is presently operating above 90% of capacity and the production ramp-up continues on schedule for completion by December 2001.

For further information contact:

Trevor Shard
Group Manager - Investor Relations
++ 61 (3) 9288 9186 or 0419 584 515

Peter Griffin
Group Manager - Public Affairs
++ 61 (3) 9288 0463 or 0419 314 26

Return to Home