Message to the shareholders (September 2007)
Dear Shareholders,
2007,
a decisive year
Results evidence our guidance, and more
In February, Cumerio issued a guidance for 2007, with a recurring EBIT that exceeded all analysts’ expectations. By the end of the first half of 2007, we are perfectly in line with our earlier predictions, having realized a recurring EBIT of €39.6 million.
Today we feel strong enough to even increase our guidance for the year. Taking into account the higher anodes production capacity in the second half for Refining and the continued good prospects in the Products business, we increase our recurring EBIT guidance for 2007 to € 75 to 80 million.
Important steps taken in our organic growth projects
We were also able to live up to the expectations on the operational side. Well within the foreseen delays and without any major safety issues.
We successfully completed the planned maintenance works in our Bulgarian smelter and simultaneously increased our anodes production capacity. As a result, we are now able to produce up to 275,000 tonnes of anodes on an annual basis.
In addition, the construction of our new Bulgarian refinery remains on track. The new installation is still planned to start up in the second quarter of 2008 and will produce 180,000 tonnes of cathodes.
Cumerio teams up with NA, its main business peer
Beyond growing organically, we also took an important step to expand strategically. On 24 June 2007, Norddeutsche Affinerie (NA) and Cumerio announced that they will combine their activities. The new company will continue operations under a new name, with headquarters in Hamburg. A Brussels-based service company will assume group-wide responsibilities for specific functions.
The intention to legally convert the entity into a European Company or “Societas Europaea” clearly expresses the future international set-up.
The leading European copper producer
The new company will become the one true leader in the European copper business. With a production of approximately 1 million tonnes of copper cathodes every year, the new group will clearly become the number one cathodes producer in Europe and will hold the number three position worldwide.
In addition, the combination of both companies will offer a strong growth platform for further international growth. The broader base will better serve Cumerio’s declared strategic focus, pointing at expansion towards emerging markets and along the entire copper value chain.
The combination also provides an excellent strategic fit between both companies. This will enable synergies in the fields of logistics, supply, optimization of capital expenditures, and through the sharing of best practices.
Today, we are proud to see that Cumerio has progressed successfully in operations, results, and its strategic growth ambitions. We are convinced that the combination of Cumerio and NA offers a good deal for all our stakeholders with an excellent next step for strategic growth, be it within the frame of a new European company that still trusts in copper.