MTT Metal-Tech

 

TIDMMTT 
 
RNS Number : 3845W 
Metal-Tech Ltd 
28 July 2009 
 

28 July 2009 
Metal-Tech Ltd 
('Metal-Tech' or 'the Company') 
 
 
Trading Update 
 
 
Metal-Tech Ltd., the metal-based hydrometallurgy and chemical company, which 
focuses on the recycling and production of specialty metals powders such as 
Tungsten and Molybdenum, provides the following trading update. 
 
Further to the announcement of the full year results on 28 April 2009, the 
Company experienced low demand during the first half of 2009, due to the impact 
of the slowdown in global economic conditions on the end markets in which its 
products are used. The Company also saw a slight reduction in metal prices 
during this period. The temporary suspension of production in its Mongolian has 
not been changed. 
As result, the Company expects revenues and profits for the full year 2009 to 
fall significantly short of market expectations. 
 
 
The Company expects that steps taken by management, which are intended to 
increase production capacity and efficiency and improve the quality of 
its products, will increase revenues and profits when market conditions 
allow. Additionally, there is increased focus on maximizing existing 
manufacturing and marketing potential for Tungsten, whilst continuing with an 
active programme of reducing inventory levels.  As at 23 July 2009, the net cash 
balance of the Company was $11 million (31 March 2009: $12 million) which is 
sufficient to meet the Company's current financing costs and expected operating 
expenses. 
 
 
The plant in Mongolia is still not in operation, and shall remain as such until 
a more favorable financial climate and conditions are foreseen. 
 
 
 
 
 
Uzbekistan Update 
The Company's Uzbek subsidiary Uzmetal Technology, producing profitably high 
quality molybdenum products, was taken over by the Company's partners, two Uzbek 
national companies, with government support, in 2006. After attempts to resolve 
this dispute failed, the Company's Board of Directors decided to pursue the 
matter through legal channels. The Company's lawyers sent a notice letter to 
pertinent representatives of the Government of Uzbekistan alleging the latter's 
breach of its obligations under the Agreement between the Government of the 
State of Israel and the Government of the Republic of Uzbekistan for the 
Promotion and Reciprocal Protection of Investments. We await a response, in the 
absence of which we intend to proceed with legal action against said parties. 
 
 
 
 
Despite the weak trading environment, good progress is being maintained in R&D 
on unique but strategically significant technology development, aimed at 
increasing recovery rates in the production of certain key metals, whilst at the 
same time reducing waste and the environmental impact of large-scale operations. 
 
 
There has never been a more widely recognised need for more efficient and 
environmentally-sound technologies in the recycling of primary mining waste as 
well as that emanating from the so-called 'mid-tech' and with this in mind an 
industrial pilot plant has been commissioned and is testing various raw 
materials from a number of interested companies 
 
 
The directors believe that the physical and intellectual resources invested by 
the Company in the past decade, together with the Company's experienced, 
focussed and professionally-qualified personnel, will enable the Company not 
just to recover, but to take advantage of the many opportunities created by 
current market conditions. 
 
 
The Company expects to announce its interim results for the six month period to 
30 June 2009 in September. 
 
 
Enquiries: 
 
 
Metal-Tech Ltd. 
Ariel (Aik) Rosenberg, Chairman +972 544 215454 
 
 
Panmure Gordon 
Edward Farmer, Stuart Gledhill +44 20 7459 3600 
 
 
Corfin Communications 
Harry Chathli, Victoria Ward +44 20 7977 0020 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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