Aug 21 2007
Ausmelt Limited (AET) increased pre-tax profit by 21.2% from $3.12 million to $3.78 million in the year ended 30 June 2007. This followed a 45% increase in revenue from $13.7 million to $19.86 million.
After-tax profit rose 7.4% from $2.84 million to $3.05 million.
The increase in net profit after tax was lower than the improvement in pre-tax earnings because the Company exhausted its available tax losses in the latest year, although some benefit was gained from foreign tax credits.
The Company has increased its annual dividend from 2 cents to 3 cents per share following the profit improvement. The unfranked final dividend of 2 cents per share will be paid on September 14 to shareholders registered by August 31.
Earnings per share in the latest year were 7.7 cents, up from 7.2 cents in the preceding year.
Ausmelt Managing Director, Mr Paul Abbott, said today 2006-07 was a period of significant achievement for Ausmelt. Highlights included:
- A record operating profit for the second successive year.
- Continued strong demand for the Company’s top submerged lance (TSL) technology, with three new non-ferrous projects signed.
- The signing of an agreement with Zinifex Limited to toll process zinc-bearing primary leach residues from Zinifex’s zinc production operations in Risdon, Tasmania at Ausmelt’s Whyalla plant.
- The Company’s chemicals division made its first significant commercial sales during the latter part of the period.
- Establishment of a new metallurgical laboratory and minerals testing business.
“The Whyalla Zinc project is expected to begin production before the end of 2007 and will add to earnings once at full capacity,” Mr. Abbott said.
“Ausmelt is expecting to expand the range of feed materials it processes at the Whyalla plant. These materials could include electric arc furnace dusts from steelmaking operations, other process residues and locally available zinc ores. Zinifex will buy zinc fume produced from these materials, so there is a ready market for Whyalla output.”
In the latest year, Ausmelt won three new contracts for the application of its top submerged lance (TSL) non-ferrous smelting technology:
- A new lead smelter for Yunnan Tin in China.
- A new lead smelter in Russia.
- A smelting furnace in Korea for recovery of lead and other metals.
Mr. Abbott said the Company had continued to pick up new contracts since balance date. This work has a combined revenue of more than $5.5 million and includes:
- A basic design engineering contract and technology licensing agreement for a lead smelter in Brazil.
- An equipment supply contract for a current lead project in Russia.
Mr Abbott said the outlook for Ausmelt for 2007-08 remained favourable.
“The Company is working on a record number of projects and is continuing to win new work for its TSL technology.
“In addition, we expect first contributions to earnings from the Whyalla Zinc project and from the recently-established Ausmelt Minmet Metallurgical Laboratories venture”.