Park Elektrik Production Mining Co. Inc. Chairman Nalan Erkarakaş recorded that the following of the amalgamation of the two companies, an economical growth of 23% in total assets occured in the first 6 months according to the financiel statement at the end of 2008.

One of the leading groups of Turkey, Ciner Group amalgamated two of its companies, which are public companies, under the name of Park Elektrik Production Mining Co. Inc.  In spite of the decreasing commodity prices in the global economic crisis, the company reached 42 % gross profitability in the first half of 2009 and Board Chairman and Ciner Group Capital Markets Group Chairman Nalan Erkarakaş pointed out the fact that the upward movements in the commodity prices affected the company in positive way.  Erkarakaş answered our questions as follows:

What are the targets of the group after the amalgamation?

The amalgamation of Park Elektrik and Ceytaş, which was consumated in May 2009, made a contribution to IMKB in terms of a company which is active in both mining and energy sector.  After the amalgamation, the trade name of the company is Park Elektrik Production Mining Endustry and Trade Co. Inc. In addition to the copper mining and asphaltite mine operations, Park Elektrik is going to have 50,5 MW of established power, which is planned to be commenced on the year 2010. It also includes hyrdoelectricity power plant construction and operating license in its company structure.  Our company is also following the new growth opportunities in this two popular sectors very closely.

First financel statement is declared after the amalgamation. How do you evaluate the financial statement data?

6 months of financial statement, which is important in terms of being the first financial statement following the Park Elektrik amalgamation, points out a growth of 89% in fixed assets and of 23% in total assets when compared to the financial statement of the 2008 year end.  6 months of financial statements results of the company carries importance because of the fact that the asphaltite which is produced in Silopi mine field is included in the operations for the first time.  It is planned that the asphaltite sales, which has started in the second quarter of the year as 46.245 tones, is between 300.000 – 400.000 tones in total in the year 2009.  The contribution of the asphaltite sale of 1.85 million TL that occured is 11% of the total sales income in the second half of the year 2009.

WE ARE AMONG THE 30 ACTIVE STOCKS IN THE EXCHANGE MARKET

After the amalgamation, have Park Elektrik created value, especially for the small investors?

As from June 2009, Park Elektrik has reached 349.9 million TL total asset size ands its equity shares is being processed with 452 million TL ($ 303 million) of market value as of  19 August 2009.  Before the amalgamation of Park Elektrik and Ceytaş, the last market value was 331 million TL in total on the date 22 May 2009. After the amalgamation, the company has reached a maximum 491 million TL of market value.  The positive influence of the synergy followed by the amalgamation and positive point of view has been clearly identified in Park Elektrik's trading volume.  Before the amalgamation, while the daily total trading value of the two companies was 14 million TL, Park Elektrik’s daily trading volume in August 2009 reached 21 million TL.  With these numbers, the company, following the amalgamation has taken place in the 30 most active stocks in IMKB.  Our company also took place in Fortune 500 and ISO 500 list in 2009.

COPPER SALES INCREASED

As from the end of June, concentrated copper sales, that are produced in Siirt Madenköy plants and constitutes a big part of the sales revenue of 35 million 698 thousand TL, has increased 21 % when compared to the same time period of the previous year.  At the same time, concentrated copper sale which is 26.113 dmt in the first 6 months of the previous year is 31.600 dmt this year.  However, as it is well known, because of the global economical crisis, there has been a significant decline in the commodity prices in the world.  Copper prices have also been influenced by this situation.  The endorsment which obtained from the copper sales has reduced in the rate of 26 % when compared to the same time period of the previous year.  However, there is a pleasing development that in spite of this decline, the company’s gross profitability is maintained as 42 %.

With the decrement of the global economical crisis influences, commodity prices start to increse.

That’s true. Nowadays, with the affect of the rising demand in the world, commodity prices seem to increase again.  Copper prices are also increasing.  It is expected that these developments in the global copper prices will have a positive influence on the company operations in the near future.  In the last 18 months, copper prices which are floating in an extraordinary way in parallel to the other commodity prices reached $ 9000 per tone in the year 2008.  However, in parallel to the increasing global economic crisis, it reduced to $ 3000 in the year 2009.  In the recent period, in which the expectations start to increase, copper prices per tone increased to $ 6.115 by 18 August.