DGAP-News: HMS Bergbau AG: Solid business performance in the first half of 2018

Corporate News from 28 September 2018

HMS Bergbau AG: Solid business performance in the first half of 2018

- Total output rises 35% to EUR 141 million (previous year: EUR 104 million

- EBITDA of EUR 1,668 thousand (previous year: EUR 709 thousand)

- Net profit for the period at EUR 1,226 thousand (previous year: EUR 495 thousand)

- Equity ratio of 21 percent (previous year: 10 percent)

- 2018 outlook confirmed

Berlin, 28 September 2018: Today HMS Bergbau AG, one of the leading independent raw materials marketing and trading companies in Germany, published its financial report for the first half of 2018.

The first half of the 2018 financial year continued to be marked by the expansion of the Company's global business activities. The positive development in the global economy, the associated increase in demand for coal as well as higher raw materials prices all provided a strong environment for HMS Bergbau AG's continued growth into an international commodities trading group.

The consistent expansion in our international network has strengthened our long-term and profitable business relationships with producers and consumers in the steel, cement and power plant industries. At the same time, we have been successful in gaining new customers in Indonesia and South Africa. Our activities in the United States are also beginning to bear fruit. New business partners in this market were also impressed with HMS Bergbau AG's positioning as an international commodities trading group with expertise in mapping the entire value chain starting with production and logistics to delivery.

In the first half of the 2018 financial year, HMS Bergbau AG worked diligently on developing and mining its own coal resources. The most promising project in this area is the Silesian Coal International Group of Companies S.A. The drilling at Orzesze under HMS Bergbau AG's exclusive exploration licence revealed a potential 2.2 billion tonne coal deposit in situ, of which around 670 million tonnes of high-grade coal were identified as recoverable according to the JORC standard. Through the Silesian Coal International Group of Companies S.A., HMS Bergbau AG plans to develop the deposit using existing infrastructure for the cost-effective production of approximately 3 million tonnes of coke and steam coal annually.

The positive operating developments are also reflected in the results of HMS Bergbau AG as of 30 June 2018. Total output in the first six months of the current 2018 financial year rose by around 35 percent year-on-year to EUR 141.0 million (previous year: EUR 104.2 million). EBITDA advanced to EUR 1,668 thousand in the reporting period from EUR 709 thousand in the comparable prior year period. At the same time, the result from ordinary business activities increased from EUR 511 thousand in the first half of 2017 to EUR 1,236 thousand in the first half of 2018. Net profit for the period increased as of 30 June 2018 to EUR 1,226 thousand after EUR 495 thousand as of 30 June 2017. With total assets remaining virtually unchanged at EUR 46.2 million as of the 30 June 2018 reporting date, equity was significantly strengthened rising from 9.8 percent as of 31 December 2017 to 21.1 percent.

The second half of 2018 also started with promising business developments. Management continues to expect high sales and an attractive gross margin resulting from the steady increase in the vertical and horizontal integration of trading transactions. The Management Board therefore confirms its forecast for the 2018 financial year for a positive net profit, which is anticipated to be at a similar operating level to the result in the 2017 financial year.

The Management Board
 

About HMS Bergbau AG:

Berlin-based HMS Bergbau AG is one of the leading independent raw materials marketing and trading companies in Germany, specialising in the international purchase and sale of coal and raw materials such as ore, fertilizers and cement products. Its customers include renowned energy producers and other industrial consumers worldwide, with whom it works closely to provide raw materials. HMS Bergbau AG is active primarily in Asia, Africa and Europe and also develops first-class raw material resources. Through its Polish subsidiary Silesian Coal International Group of Companies S.A., the company also has licences to explore coal reserves in Silesia. HMS Bergbau AG also handled complex transport solutions for its customers. The company was established in 1995 and is listed on Germany's Frankfurt Stock Exchange in the Basic Board segment.