Bulgarian lead/zinc smelter OTZK H1 net loss widens

The smelter’s sales revenue dropped to 2.83 million levs through June from 49.1 million levs in the same period of 2011, OTZK said in a statement filed with the Bulgarian Stock Exchange. Exports accounted for 61.2% of the total revenue.

OTZK tuned to an operating loss of 2.71 million levs in the first half of the year from a profit of 4.43 million levs a year ago.

The amount of lead produced in the first half of the year dropped to only 84 tonnes from 4,899 tonnes in the same period last year, while zinc output decreased to 391 tonnes from the previous 8,262 tonnes. The negative trend was due to repair works carried out at the production capacities and to workers' protests, the statement added.

On Friday, state-run Bulgarian National Radio reported that Sofia-based Harmonee 2012 has won a tender for the sale of a 50% stake in the indebted smelter. The previous majority owner of the lead and zinc producer was Intertrust Holding, a company controlled by local businessman Valentin Zahariev.

Harmonee 2012 has offered to pay 8.6 million levs in the tender in which the starting price was set at 8.3 million levs. The sale aims to repay part of OTZK's debt to creditors, estimated at more than 300 million levs.

(1 euro=1.95583 Bulgarian levs)