(MTT) Metal-Tech

the internatiional arbitration between Metal-Tech and Uzbekistan? It was due to start last Monday. Result may affect OXUS Gold share price as they too are taking the Uzbekistan Government to court later this year.

The mid-afternoon RNS yesterday will have surprised a few who'll be unaware of the results as yet....

A post elsewhere sums up the results nicely:

MTT "have had the support of their banks through the worst of it and are now coming out the other side with gross profit and massively increased Tungsten revenues. Not to mention the potential Chilean tie-up, the Uzbek settlement and even possibly a Shim-Tek one which offer windfall potential."

The tungsten price increased throughout H1 to its current level, so H2 should show nicely increased profits over H1. A £3.9m m/cap, with tightly held shares, gives plenty of potential upside.

Summary coverage here:

http://www.stockmarketwire.com/article/4227772/Metal-Tech-boosted-by-rise-in-tungsten-prices.html

"Metal-Tech boosted by rise in tungsten prices
26 September 2011 | 15:26pm
StockMarketWire.com -

Tungsten price increases boosted first-half revenues at speciality metals recycler Metal-Tech and lifted it into the black in the six months to the end of June.

Revenues increased by 40% to $29.9m and there was a gross profit of $3.9m compared with a loss of $0.3m last time due to due to tight cost control measures and the increase in tungsten prices.

There was a net profit of $2.5m against a loss of $5.4m a year ago.

Executive chairman and CEO Aik Rosenberg said: "We are pleased to report a period of continued progress in the first half of 2011.

"Strong demand for tungsten led to sales of the metal at higher prices compared with the same period last year.

"The company also remained committed to tightly managing its costs and finance whilst driving the business forward by increasing its recycling and production activities."

At 3:26pm: (LON:MTT) share price was +0.75p at 10p"

DJ Metal-Tech Ltd Interim Results

TIDMMTT

RNS Number : 9428O

Metal-Tech Ltd

26 September 2011

26 September 2011

Metal-Tech Ltd.

("Metal-Tech" or "the Company")

Results for the six months ended 30 June 2011

Metal-Tech, the producer and recycler of speciality metals such as Tungsten and Molybdenum, announces results for the six months ended 30 June 2011.

Financial Summary:

-- Revenue increased 40% to US$29.9m (H1 2010: US$21.3m), reflecting increased prices of Tungsten

-- Gross profit increased to US$3.9m in (H1 2010: US$0.3m loss), due to tight cost control measures and an increase in Tungsten prices

-- Net Profit of US$2.5m (H1 2010: US$5.4m loss)

-- Income incurred by deconsolidation of a subsidiary that ceased being consolidated, Shim-Technology Co. Ltd. ("Shim-Tech"), the Company's Mongolian subsidiary, of US$3.5m (H1 2010: US$1.4 loss) presented in discontinued operations

-- Operating expenses as a percentage of revenue reduced to 13% (H1 2010: 16%)

-- Bank debt was US$20.7m at 30 June 2011 (31 December 2010: US$21.9m after neutralisation of US$6.7m loan of non consolidated subsidiary)

-- Cash, cash deposits and restricted cash balance at 30 June 2011 were US$6.4m (31 December 2010: US$7.3m). The restricted cash at 30 June 2011 was US$5.6m (31 December 2010: US$5.1m)

-- Positive cash flow from operating activities US$1.5m (31 December 2010: negative US$1.0m)

Operational Summary:

-- Average selling Tungsten prices increased 64% compared with the same period last year

-- On 31 March 2011, a four-month industrial pilot phase for the validation of the Company's novel molybdenum extraction technology was completed satisfactorily under the supervision of a major publicly-traded international Chilean copper/molybdenum company. Negotiations regarding the implementation of the project have started, however it is currently difficult to assess if or when and what type of project will be implemented and any associated financial outcome to the Company

-- Tightly managed costs and cash flow to improve efficiency while maintaining strong focus on R&D in strategic areas

-- The Company's arbitration case against the Republic of Uzbekistan is ongoing, alleging that the country's treatment of Metal-Tech's 50% investment in Uzmetal Technology is unlawful

Commenting on the results, Aik Rosenberg, Executive Chairman and CEO of the Company, said: "We are pleased to report a period of continued progress in the first half of 2011. Strong demand for Tungsten led to sales of the metal at higher prices compared with the same period last year. The Company also remained committed to tightly managing its costs and finance whilst driving the business forward by increasing its recycling and production activities."

Enquiries:

Metal-Tech Ltd. +972 544 215454
Ariel (Aik) Rosenberg

Panmure Gordon +44 20 7459 3600
Aubrey Powell
Hannah Woodley / Charles Leigh-Pemberton

Corfin Public Relations +44 20 7596 2860
Harry Chathli, Alexis Gore

Operating Review

Metal-Tech is pleased to report strong revenue growth and an improved operational performance in the first half of 2011. Revenue increased by 40% to US$29.9m (H1 2010: US$21.3m), reflecting increased sales prices. Tungsten prices were up 64% compared with the same period last year.

Metal-Tech achieved a gross profit of US$3.9m in H1 2011 compared with a gross loss of US$0.3m the first half of 2010, due to tight cost control measures and higher Tungsten prices.

As previously stated, the Company has taken steps to increase its recycling and production capacity in Israel by preparing and submitting an investment program to the Israel Ministry of Trade and Industry as well as seeking other international opportunities for co-production. The Israel Ministry of Trade has now approved the Company's investment program o

A number of investors have expressed dismay over today's results.My view is that they obscure the tremendous turnaround during the final 3 months of 2010 as outlined in my posting over on ADVFN.
The trading performance imo is most satisfactory and fully in line with my expectations.
Reflect that the initial uptick in tungsten prices did not occur until October 2010,leaving MTT just 3 months to benefit.Whilst we cannot be sure of the further gross trading loss between July 1st and Oct 1st 2010,I have pencilled in a figure of 1million being consistent with pre upturn data.
On this basis,a 9 month gross trading loss of 3.17million was transformed into a gross trading profit of over 400,000 in the final 3 months,presenting us with a highly commendable 3 month trading profit of 4.5million.
Since the reported year end pricing and trading have demonstrated further significant improvements.
Doubling up this 3 month profit(imo we might see it quadruple)and MTT transforms-as early as the interim stage- into a highly profitable and cash generative unit,with further"attractive" short term benefits possibly about to accrue from other areas.
Whilst I would welcome critical analysis of my initial basic and cursory extraction,this company,in the intervening period remains, for me,a hugely exciting investment.
Remember,the interim trading period ends on Thursday.(so not that long to wait bill182).
++When the Interims are presented,operating expenses will drop by 1million for the period as the depreciation figure reduces to accommodate the brutal write off's announced today.
Ten bagger anyone??