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Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. April 2015.

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Presentation on theme: "Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. April 2015."— Presentation transcript:

1 Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. April 2015

2 2 Contents  Company & Operations3  Ownership Structure & Participation18  Ciner Group 21  Financial Structure24 V.Evaluation of The Latest Financial Tables32 VI.Corporate Governance Rating37 Park Elektrik April 2015 Park Elektrik Madencilik

3 Park Elektrik3 I.Company & Operations 3 April 2015 Park Elektrik Madencilik

4 Park Elektrik4 Introduction  Park Elektrik is the sole copper mining company on the ISE. The company operates Madenköy copper mine in Siirt, in the southeast of Turkey, since late  Total resources of Madenköy copper mine was determined as 41.5 mn tons of ore with an average grade of 2,02% according to a JORC based report conducted by Micromine Consulting Services in February So far, Park Elektrik extracted approximately 8 mn tons of ore out of total resources of 41.5 mn tons in the zone.  The company has a concentration facility and it produces and sells concentrated copper, which is the final product of the company. Park Elektrik sells all of its concentrated copper, that includes copper content of around 20%, to an international commodity broker, namely Traxys.  As of YE2014, total number of employees is employees of total work force are blue collar employees working in the copper mine. 4 April 2015 Park Elektrik Madencilik

5 5 Location of Copper Mine Copper Mine Siirt April 2015 Park Elektrik Madencilik

6 6 I) Madenköy Copper Zone  Park Elektrik acquired operation license of Madenkoy copper mine in 2004 from Eti Holding, a state-owned entity engaged in mining businesses, for TL9.4 mn.  Copper mine operations started in late 2006 in Madenköy copper zone. So far, 8 mn tons of ore have been extracted in the copper zone, while the remaining resources is 33.5 mn tons of ore as of YE14.  According to initial reports, proven reserves in the zone was determined as 13 mn tons of ore when Park Elektrik commenced its operations in However, according to latest reserve report issued by Micromine Consulting Services in February 2014, total resources in the zone was determined as 41.5 mn tons of ore, 36.3 mn tons of which was measured.  Park Elektrik exports all of its concentrated copper production to an international commodity broker namely Traxys, while the end customer is China. April 2015 Park Elektrik Madencilik

7 April  According to a JORC (Joint Ore Resources Code) compliant reserve report issued by Micromine Consulting Services in February 2014, total resources of the project was determined as 41.5 million tonnes of ore.  According to the same report, average grade in Madenköy copper mine is 2.02% for the whole zone and average grade of the measured resources is 1.95%. Micromine Reserve Report Based On JORC Micromine October 2011 Resource Report Micromine February 2014 Resource Report TonnesGrade (%)TonnesGrade (%) Measured , ,95 Indicated , ,45 Inferred , ,52 Total Resources , ,02

8 Park Elektrik8 Production Volumes & Targets 8 April 2015 Park Elektrik Madencilik *2013** E Stripping (m3) - 3,500,29210,151,22414,291,2819,000,000 Ore Production (tons, wet) 1,024,8711,138,2321,540,0311,723,6531,652,000 Ore Used In Con. Center (tons, dry) 949,7311,081,3201,463,0291,637,4701,569,400 Grade of Ore (%)1,731,771,471,181,35 Recovery Rate87%86%82%87% Con. Copper Production (wmt)77,51089,25396,03891,18598,225 Con. Copper (dmt) (~92% of wmt) 71,30982,11388,35483,89090,367 Copper (mt) (~20% of dmt con. copper) 14,26216,42317,67016,77818,073 * Pre-stripping started in ** Production through open-pit started in mid of 2013.

9 Park Elektrik9 Long Term Planning in Open Pit  Having being operated by underground mining since the beginning of operations in the Madenköy copper zone, Park Elektrik shifted its copper mining operations from underground to open-pit mining by the mid of Pre-stripping in the zone started in 2012 and it continued until mid of  Based on projections, the company plans to continue open pit mining between Throughout open pit mining for 18 years, the company plans to produce 26.4 mn tons of ore with 246 mn m 3 stripping with an average strip ratio of 9.3 by the end of  2014 was the first full year of open pit mining therefore Park Elektrik had to work with very low grade with a high volume of stripping. 9 April 2015 Park Elektrik Madencilik PeriodEstimated Total Stripping (m3) Estimated Total Ore Production (ton) Estimated Strip Ratio Estimated Total Con. Copper Production (wmt) ,000,00026,400,0009,312,107,702

10 10 April 2015 Park Elektrik Madencilik Open Pit Site View

11 Current View From Mine Park Elektrik MadencilikApril

12 Views From The Pit Park Elektrik Madencilik April

13 13 April 2015 Park Elektrik Madencilik Main Ore Body Topography Open Pit Topographic View – I

14 14 April 2015 Park Elektrik Madencilik Open Pit Topographic View - II Main Ore Body

15 15 April 2015 Park Elektrik Madencilik Open Pit Site Cross Section

16 Power Plant Projects  Withdrew natural gas power plant applications for Edirne and Ceyhan regions due to the complexities of the investment stages and uncertainities.  Obtained environmental impact assessment report for Hydroelectricity power plant (HPP) of 50MW in Diyarbakır/Tarihler. Transmission aggreement with TEIAS was achieved. Tender offer for construction of the facility will be made soon. Park Elektrik Madencilik April

17 17 II.Ownership Structure & Participation Park Elektrik April 2015 Park Elektrik Madencilik

18 Park Elektrik18 Ownership Structure 18 April 2015 Park Elektrik Madencilik

19 Park Elektrik19 Participation, Park Termik  Park Elektrik has 10% stake in Park Termik Elektrik San. ve Tic. A.S., a Ciner Group company which is involved in thermal power generation in Çayırhan, Ankara.  Park Termik has operating rights of Çayırhan Thermal Power Plant which has a total production capacity of 620 MW, in four units.  The plant is an integrated power generator which procures coal through its own lignite mines.  In 2014, Park Elektrik gained TL7 mn dividend income from Park Termik. 19 April 2015 Park Elektrik Madencilik

20 20 III.Ciner Group Park Elektrik April 2015 Park Elektrik Madencilik

21 Park Elektrik21 Ciner Group, Main Line of Businesses Energy & Mining Group Ciner Group Media Group Commerce, Industry & Services Group Major Companies & Brands Haberturk Newspaper Haberturk TV, Radio, Haberturk Web Site Bloomberg HT, Aks TV (Show TV) Major Companies Ciner Marine, Ciner Aviation, Lares Park Hotels, Park Insurance, Denmar Logistics, Park Holding Ciner Yayın Holding Major Companies Park Elektrik, Park Termik, Silopi Elektrik, Park Teknik, Park Toptan, Eti Soda, Rio Tur Soda, Park Cam 21 April 2015 Park Elektrik Madencilik

22 22 Ciner Group  Park Holding, the main shareholder of Park Elektrik with 61% share, is solely owned by Mr. Turgay Ciner.  Ranking among the largest Groups of Turkey, Ciner Group’s history goes back to 1978 when it was founded. The Group has a diversified business portfolio. However, the Group’s main line of businesses are mining and energy in which it has a wide expertise.  Ciner Group is a pioneering actor in energy and mining sector given its new and initial steps since early 1990s. In line with accelerated privatization efforts in 1990s, the Group successfully involved in mining and energy sectors which are the underlying sectors of the Group’s fast growth in recent years. April 2015 Park Elektrik Madencilik

23 23 IV.Financial Structure April 2015 Park Elektrik Madencilik

24 24 Annual Concentrated Copper Production (wmt) * Annual production declined due to production halt of four-month in April 2015 Park Elektrik Madencilik

25 25 Annual Con. Copper (dmt) & Cathode (ton) Sales * In 2010, there was a production halt of four months. ** 6,613 dmt of concentrated copper were used to produce 1,210 mt copper cathode. This pushes 2011 total sales up to 61,667 dmt. *** 14,296 dmt of concentrated copper were used to produce 2,521 mt copper cathode, that is increasing 2012 total sales volume up to 87,663 dmt. April 2015 Park Elektrik Madencilik

26 26 Total Sales Revenues (TL) April 2015 Park Elektrik Madencilik

27 Park Elektrik27 Net Earnings (TL mn) 27 April 2015 Park Elektrik Madencilik

28 28 Breakdown of Cost of Production, as of YE14, (copper only) April 2015 Park Elektrik Madencilik

29 29 Annual Margin Comparison (TL mn) Sales Gross Profit Gross Margin66%41%52%62%51%28%11% EBITDA EBITDA Margin56%30%50%65%62%57%54% Net Earnings Net Margin68%25%44%58%58%40%27%9% April 2015 Park Elektrik Madencilik

30 30 Sources of Financing (TL mn) * Park Elektrik has no financial debt. April 2015 Park Elektrik Madencilik

31 31 V. Evaluation of 2014 Financial Results April 2015 Park Elektrik Madencilik

32 32 Evaluation of 2014 Financial Results  In 2014, copper concentrate production has been realized as 91,185 wmt indicating a 5% decline as compared to 2013 results. Copper concentrate sales also decreased to 85,038 dmt with a 9% drop, y-o-y.  Due to the low grade ore having being used in the concentration center and low copper prices, operational loss occured by the year end for the first time. The company also had net fx loss due to the fx rate fluctiations in But the transfer of asphaltite facility to Silopi Elektrik and dividend payment from affiliate Part Termik, created net positive income in the same period. April 2015 Park Elektrik Madencilik

33 33 Production & Sales Amount ProductionYE13YE14% Concentrated Copper (wmt)96,03891,185-5% Asphaltite (ton)*322,010101,600-68% SalesYE13YE14% Concentrated Copper (dmt)93,04985,038-9% Asphaltite (ton)*322,010101,600-68% April 2015 Park Elektrik Madencilik * Park Elektrik sold the entire asphaltite operations to Silopi Elektrik for TL61 mn resulting TL14 mn profit in the end of 1Q14 due to regulatory obligations.

34 34 Income Statement (TL) April 2015 Park Elektrik Madencilik % Sales % COGS % Gross Profit % Gross Margin27,76%10,93% Marketing, Distribution Exp % General Adm. Expenses % R&D Expenses Other Operating Income % Other Operating Expenses % Operating Income % Operating Margin24%-6% Income From Investments % Expense From Investments % Income Before Financial Exp % Financial Income Financial Expenses % Profit Before Tax % Tax Income / Expense % Net Profit % Net Margin27%9%

35 35 Summary Balance Sheets (TL) YE13YE14 Current Assets315,080,736297,365,121 Fixed Assets269,102,374255,897,086 TOTAL ASSETS584,183,110553,262,207 Short Term Liabilities42,409,59938,151,674 Long Term Liabilities21,567,54116,434,153 Shareholders Equity520,205,970498,676,380 TOTAL LIABILITIES584,183,110553,262,207 April 2015 Park Elektrik Madencilik

36 36 VI. Corporate Governance Rating April 2015 Park Elektrik Madencilik

37 37 Corporate Governance Rating Park Elektrik’s corporate governance rating increased to 8.98 according to a recent report conducted by SAHA Corporate Rating Agency in June Based on the report, the rating means that the company performs “very good” in terms of Capital Markets Board’s corporate governance principles. It has, to varying degrees, identified and actively managed all significant corporate governance risks through comprehensive internal controls and management systems. The company’s performance is considered to represent best practice, and it had no deficiencies in any of the areas rated. April 2015 Park Elektrik Madencilik

38 38 T H A N K Y O U. CONTACTS Yesim BilginturanSelim ErdoganIR Manager Phone: April 2015 Park Elektrik Madencilik


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