MTT Metal-Tech

    RNS Number : 6002C
  Metal-Tech Ltd
  03 September 2008
   

    3 September 2008

    Metal-Tech Ltd.
    ("Metal-Tech" or "the Company")
    Trading update for the six months ended 30 June 2008

    Metal-Tech issues the following trading update for the six-month period ended 30 June 2008 ahead of its results which it expects to
announce on 17 September 2008. 

    For the six month period ended 30 June 2008, Metal-Tech expects to report revenues significantly higher than management expectations,
mainly due to continuing strong demand for Molybdenum. Operating Profit is in line with expectations. The higher revenue did not translate
into higher Operating Profit mainly due to cost escalation of labour and consumables. Profit Before Tax is expected to be significantly
below expectations, due to a 13% decline of the US dollar, from Dec. 31 2007, against the Israeli Shekel, significantly increasing the
Company's cost of sales, operating expenses and finance Expenses. Net Profit and Attributable Profit are slightly below expectations, mainly
due to lower than expected taxes. 

    For the full year of 2008, Metal-Tech expects revenue to be significantly higher than market expectations, mainly due to continuing
strong demand for Molybdenum and Tungsten, the company's main products. Operating Profit and Profit Before Tax are expected to be
significantly below expectations, partly due to increased investment in R&D, business development, recruitment costs and the cost of a new
management team, which should have the ability to deliver the potential that management believes Metal-Tech has. Other contributors to the
shortfall in Operating Profit and Profit Before Tax are cost escalation of labour and consumables, the weakening of the US Dollar and higher
than expected costs in the company's plant in Mongolia. Net Profit and Attributable Profit are expected to be slightly below market
expectations due to lower than expected Taxes and Minority Interests.

    Jonathan Ben-Cnaan, CEO of Metal-Tech, said: "By the end of the year we expect to improve efficiency of production in Mongolia and to
have on board a new management team with broad international experience, focused on current operations and the development of
transformational business opportunities."



    Enquiries:
    Metal-Tech Ltd.
    Ariel (Aik) Rosenberg, Chairman +972 544 215454
    Jonathan Ben-Cnaan, Chief Executive Officer +972 544 232399

    Panmure Gordon
    Edward Farmer + +44 20 7614 8384

    Corfin Communications
    Harry Chathli, William Cullum +44 20 7977 0020

This information is provided by RNS
The company news service from the London Stock Exchange
 
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