Euro Sun, Glencore enter MOU for offtake on Rovina Valley project
Euro Sun considers Rovina Valley to be one of the largest undeveloped copper-gold projects in Europe.
Danish mining equipment and cement maker FLSmidth does not expect to generate any revenue in Russia beyond this year as the company winds down its business there, its chief executive said on Thursday.
“We are winding down our Russian operations as fast as we can,” newly appointed CEO Mikko Keto told Reuters on Thursday after the firm posted strong first-quarter results helped by high demand for minerals such as copper and lithium.
FLSmidth shares were up 6.7% on the Copenhagen blue chip index at 0712 GMT.
“That has some impact on EBITA (earnings before interest, tax and amortisation) on mining. We are winding down, but we still have a cost base of personnel in Russia,” said Keto, who took the helm of the company in January.
The firm expects full-year EBITA margin for its mining business to come in at the lower end of its guidance range of between 8.5% and 9.5%.
FLSmidth generated revenue of around 380 million Danish crowns ($54.1 million) in Russia in the first quarter. Keto said he did not expect a forecast for full-year revenue in Russia of around 1.5 billion crowns to be fully realised.
“We don’t have the exact number, because we are still in discussions with customers,” he said, adding that the firm does not expect to generate revenue in Russia next year.
FLSmidth has benefited from a rise in commodity prices and has seen demand for raw materials such as copper soar.
Order intake in the first quarter grew by 41% compared to the same period last year, while earnings before interest, tax and amortisation (EBITA) grew by 59% to 302 million crowns.
The company maintained its financial guidance for 2022, but said it was subject to increased uncertainty due to political turmoil, the pandemic and a global supply chain crunch.
($1 = 7.0264 Danish crowns)
(By Nikolaj Skydsgaard; Editing by Jason Neely)
Comments