GROUP FINANCIAL OVERVIEW
Revenue for the first nine months 2017 of EUR 2,628 million was up 33% on 9 months 2016, driven by higher zinc and lead prices which were up 42% and 27% respectively, benefit of a marginally stronger US dollar against Euro in 9 months 2017 versus 9 months 2016 and increased production volumes in zinc smelting and mining.
Group underlying EBITDA (continuing operations) of EUR 162 million in 9 months 2017, an increase of 35% on 9 months 2016, due to higher commodity prices and stronger US dollar, partially offset by lower treatment charges, lower production from Port Pirie and Budel and the opportunity cost of the strategic zinc price hedge which reduced free metal price exposure.
Capital expenditure (continuing operations) was EUR 267 million in 9 months 2017, representing an increase of 49% period-on-period driven by a EUR 65 million increase in Metals Processing due to the large planned maintenance shuts in the first nine months of 2017 at Budel, Balen and Hobart and EUR 25 million capex increase in Mining with the restart of the Middle Tennessee mines and Myra Falls mine. The total capex remains in-line with full year guidance provided for FY 2017 (EUR 275 - EUR 340 million).
Net debt at the end of September 2017, excluding the zinc metal prepay and perpetual securities, was 15% higher compared to the end of H1 2017 at EUR 1,138 million (EUR 986 million at the end of H1 2017), predominantly due to amortisation of the silver prepays, working capital outflow due to higher commodity prices and capex expenditure in-line with guidance. The net debt inclusive of the zinc metal prepay and perpetual securities at the end of September 2017 was EUR 1,387 million, up 12% compared to the end of H1 2017. Cash balance at the end of September 2017 was EUR 65 million compared to EUR 95 million at the end of H1 2017 with proforma liquidity at the end of September 2017 of EUR 600 million.