25 Jun 2013 11:00
East West Resources plc
AGM Statement
At today's Annual General Meeting of East West Resources plc (the "Company" or "EWR" and, together with its subsidiaries, the "Group"), Charles Crick, Chairman, will make the following statement:
"In April, the Company reported that orders in Ambrian Metals Limited ("AML"), the Group's metals trading business, were ahead of the comparable period last year. This was achieved against a background of relatively low market volumes. This trend continued during the second quarter influenced, in part, by port strikes in Chile that affected metal exports and the closure of two smelters in India. This, combined with the recent clearance of excess metal inventories in the Middle East, has resulted in increasing premiums on prompt deliveries in the Middle East and Asian markets. The pattern of trading AML has achieved in the first quarter of the year has continued.
Accordingly, EWR expects to report revenues and margins for the first half well ahead of the first half of last year as a result of improved premiums and volumes within AML. Looking ahead, and assuming the absence of any sustained slowdown in our target markets or possible reduction in the availability of credit to the end use customers, we anticipate that AML's performance in the second half will be broadly in line with the first half of the year.
As a result of an improving equity base and the cash position of the Company following the biofuel business disposal, the USD 3 million loan from our major shareholder, Consolidated General Minerals plc, has now been repaid in full.
Efforts continue to reduce the Group's fixed costs which still remain too high, primarily the result of the lease on the Company's head office premises which expires in June 2015. In addition, the Group continues to explore routes to increase shareholder value in order to have a diversification of revenue and not to rely only on the trading of copper metal."
East West Resources plc
Roger Clegg, COO +44 (0)20 7634 4785
Cenkos Securities plc
Jon Fitzpatrick +44 (0)20 7397 8900
Neil McDonald +44 (0)131 220 6939
Notes to Editors:
EWR is active in the physical trading of base metals (primarily copper). It sources and supplies a variety of commodities to end users all over the world. Supported by its offices in London and Shanghai and a network of agents in North and South America, Asia and the Middle East, EWR provides producers and consumers with its marketing insight whilst emphasizing the financing and risk management aspect of its trading activities. EWR also holds and manages a number of equity investments. EWR is quoted on the AIM section of the London Stock Exchange under the ticker symbol EWR.
Further information on East West Resources plc is available on the Company's website: www.ewrplc.com