London 28/04/2016 - European lead producer Recyclex is still negotiating a refinancing package to guarantee continued output at its 140,000-tonne-per-year primary smelter in Germany, while sales for all products were down in the first quarter of this year.
Consolidated sales for the three months to March 31 totalled 92.5 million euros, down 13 percent on the first three months of 2015, it said on Thursday.
Quarterly sales for lead fell nine percent to 68.9 million euros, with zinc sales 20 percent lower at 15.5 million euros. Special metals and plastics sales also came in lower than in the first quarter of 2015, Recyclex said.
"From a business perspective, the adverse trend in metals prices compared with the first quarter of 2015 was the main factor behind the decline in our first-quarter 2016 sales. With the mild weather conditions during the winter, scrap batteries availability on the market was very low," chairman and CEO Yves Roche said.
And with prices for its main products continuing to sink, the company has once again deferred a refinancing package for its German operations.
"The negotiations concerning the financing search for the German perimeter have well progressed during these last days but have not yet reached a sufficiently advanced stage for Recylex SA to issue its 2015 financial statements," Roche said.
The continued lack of a breakthrough in refinancing negotiations at Recyclex clouds the future of its Weser Metal primary lead smelter.
"Unless it receives a financing proposal by the end of the first quarter of 2016, the going concern status of the group's German subsidiaries - and with it that of Recyclex SA - could be called into question," the company had said in its February 17 sales report.
Financial statements for the 2015 calendar year were postponed in March until today's quarterly statement but due to continuing negotiations the company has had to postpone their release again
"The due date for its repayment has now been postponed until May 31, 2016," it said.
(Editing by Mark Shaw)