25 Jun 2014 11:00
East West Resources plc
AGM Statement
At today's Annual General Meeting of East West Resources plc (the "Company" or "EWR" and, together with its subsidiaries, the "Group"), Charles Crick, non-executive Chairman, will make the following statement:
"I am pleased to report that gross profits for our principal business, Ambrian Metals Limited ("AML"), the Group's metals trading business, for the five months to 31 May are at a similar level for the same period last year although we are experiencing a slower June due to more difficult market conditions and volatile forward spreads which we expect will result in a lower gross profit for the first half and a lower revenue run rate going into the second half. Our performance to date has been achieved against a background of a reduction in the LME price of copper over the period to 31 May to c.$7,000 per tonne (from c.$7,500 per tonne on 1 January 2014). Premiums have, however, remained relatively stable underpinned by a diminution in free LME warehouse stocks of copper over the period.
Looking ahead, and assuming the absence of any sustained slowdown in our target markets or possible reduction in the availability of credit to end user customers, we remain confident in our business model for a successful second half. However, shareholders should be reminded that the second half performance in 2013 benefitted from favourable trading conditions.
As announced in our Annual Report, the Company recently entered into agreements to surrender the lease of our head office premises and to take a new lease of premises in the City of London better suited to our requirements. We have now completed these agreements and have moved into our new premises."
East West Resources plc
Roger Clegg, COO +44 (0)20 7634 4785
Cenkos Securities plc
Neil McDonald +44 (0)131 220 9771
Nick Tulloch +44 (0)131 220 9772
Notes to Editors
EWR is active in the physical trading of base metals (primarily copper). It sources and supplies a variety of commodities to end users all over the world. Supported by its offices in London and Shanghai and a network of agents in North and South America, Asia and the Middle East, EWR provides producers and consumers with its marketing insight whilst emphasizing the financing and risk management aspect of its trading activities. EWR also holds and manages a number of equity investments. EWR is quoted on the AIM section of the London Stock Exchange under the ticker symbol EWR.
Further information on East West Resources plc is available on the Company's website: www.ewrplc.com