For the first time in the history of the company, it issued an interim financial statement.
In the first quarter of 2004, the company's metal sales revenues increased by 40% against the first quarter of 2003 and totaled $1.58 billion. The main reasons for the revenue growth were the growth of the average realized prices of produced metals and the consolidation of financial results of the Stillwater company in the financial statements for the first quarter of 2004; in the first quarter of 2003, the financial results of Stillwater were not consolidated.
The company's revenue from its primary economic activity increased 2.9 times to $621 million; its revenue prior taxes increase 3.5 times to $635 million.
In the first quarter of 2004, the total cost of metal sales increased by 1.5% and amounted to $693 million, while cash operating costs decreased by 2.8% to $557 million in the first quarter of 2004 from $573 million in the first quarter of 2003.
Amortization and depreciation of operating assets increased by $5 million to $102 million in the first quarter of 2004 as a result of recording new production assets on the company's balance sheet and consolidation of Stillwater's assets.
The severance tax increased by $14 million to $32 million in the first quarter of 2004 as a result of the growth of ore extraction in physical terms, as well as the new tax on pollution introduced by the Kola state metallurgical company and the Polar branch.
Other costs in the first quarter of 2004 decreased by 16% against the first quarter of 2003 and amounted to $72 million.
The overall breakdown of cash operating costs practicallydid not change in the first quarter of 2004. Two key cost items - labor and consumables and spares - amounted to 30% and 26% of total cash operating costs, respectively (29.5% and 26% in the first quarter of 2003).
In the first quarter of 2004 compared to the first quarter of 2003, the Company's selling, general and administrative expenses increased by $39 million to $191 million. This growth came from increase in export customs duties.
Other non-operating expenses declined by $9 million to $78 million in the first quarter of 2004 compared to the first quarter of 2003 mainly due to the decrease in social costs.
