PARK ELEKTRİK ANNUAL REPORT 2011

Transcription

1 PARK ELEKTRİK ANNUAL REPORT 2011

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3 Contents 3 MESSAGE FROM THE CHAIRWOMAN 5 SECTION 1: MANAGEMENT 6 MISSION, VISION AND VALUES 7 BOARD OF DIRECTORS 8 BOARD OF AUDITORS 9 AGENDA OF ORDINARY GENERAL ASSEMBLY 11 SECTION 2: PARK ELEKTRİK IN BRIEF 13 HISTORY 13 SHAREHOLDING STRUCTURE 13 PRODUCTS 13 COPPER 14 ASPHALTITE 15 MAJOR FINANCIAL INDICATORS 15 SHARE CERTIFICATE PERFORMANCE 17 SECTION 3: ASSESSMENT OF THE YEAR SECTORAL CHANGES 19 PARK ELEKTRİK IN COPPER PRODUCTION 21 ASPHALTITE PRODUCTION 21 FINANCIAL PERFORMANCE 22 HUMAN RESOURCES 23 CORPORATE SOCIAL RESPONSIBILITY 23 INVESTOR RELATIONS 23 CORPORATE GOVERNANCE RATING 25 SECTION 4: CORPORATE MANAGEMENT 27 CORPORATE GOVERNANCE COMPLIANCE DECLARATION 28 CORPORATE GOVERNANCE COMPLIANCE REPORT 33 CAPITAL MARKET BOARD SERIAL XI. NO DECLARATION 34 APPROVAL BY THE BOARD OF DIRECTORS 35 AUDITOR S REPORT 37 INDEPENDENT AUDIT REPORT PARK ELEKTRİK ANNUAL REPORT

4 Having completed 5 years in concentrate copper production, we increased our capacity, production figures and profitability in

5 Message from the Chairwoman This year we hereby present you an extraordinary design and color of annual report. Green replaces the colors representing the copper and the coal. Then, come the soil and tendrils instead of the underground and mining figures as well. We decided to bring together the copper, one of the most commonly used metals of the world, and the soil and plant in one and a single question to create this concept. WHAT IF IT DIDN T EXIST? Miraculous and productive togetherness of soil-copper and soil-tendril, sprouting of a seed planted, recall us the productivity and copiousness-the copiousness of the copper we extracted. We left behind the 5th year in concentrate copper production with regard to the matters of extraction-just like shooting tendrils-of the concentrate copper being the basic raw material of the industry due to its higher heat and electricity conductivity, its stainless metal characteristics, its corrosion resistance; and easy formability and the matter of elimination of the question WHAT IF IT DIDN T EXIST? In copper production - we launched in the second half of 2006; our production volume and productivity also increased in association with our capacity in In 2011, whereas our concentrate copper production increased by 107% compared to the previous year, our sales increased by 91% as well. Another important highlight of this year is that our Company launched cathode copper production. Specific portion of the concentrate copper production of 77,510 wmt was used for cathode copper production, so cathode copper of 2,829 tons was derived. Our production and sales of asphaltite, which constitutes 11% of our net sales proceeds, were realized in parallel with the past year as expected. While our gross profitability in the concentrate copper prices is 68% with the effect of the positive trend in the concentrate copper besides the increase in the production volume, our gross profitability in asphaltite is 20%. Corporate Governance Rating of our Company, one of the first implementers of the Corporate Governance Principles and taking place in Corporate Management Index of Istanbul Stock Exchange (ISE), increased to Accordingly, we continued to keep our forefront position among the ISE companies in Furthermore, company promoting meetings were organized in the country and abroad and our Company s performance was disclosed to local and foreign investors within the scope of our investor relations - an important constituent of the Corporate Governance Principles. Our aforesaid activities on which we had quite positive returns would also go on increasingly in the year Our Company, growing in parallel with the high rate of growth of the Turkish economy despite the economic crisis, occurred in the global economy and deepened and continued particularly in the countries of the Euro Zone in 2011, started the year 2012 with the same enthusiasm and dynamism. The year 2012 would become a year in which our Company would proceed to produce, make investment and contribute to the growth of the Turkish economy. I hereby extend my thanks to my colleagues for their peak performance and to our Group for their support throughout the year; and I greet you all with due honor, wishing that 2012 would be a better year for Turkey and the World. Nalan ERKARAKAŞ Chairwoman of the Board of Directors PARK ELEKTRİK ANNUAL REPORT

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7 Section 1 Management Park Elektrik, adopted the Corporate Governance Principles, is being managed by a competent team within the scope of its mission, vision and values. PARK ELEKTRİK ANNUAL REPORT

8 Our Mission, Vision and Values Mission To follow technology and new developments and apply the same at each stage of work, To make effort to reach ever better working conditions, To increase productivity by motivating employees, To construct secure working sites at low cost, To make use of scarce resources in an effective and efficient manner to prevent possible losses. Vision Uprising of the Company as the leader among the other companies operating in the same sector both in the country and abroad, providing the growth with a track record of high quality, reflecting the effective and balanced growth to each activity of the Company, investing in appropriate areas, enabling maximum profit for the investors by trying to get the highest efficiency through minimum cost. Our Values Honesty - The Company abides on its promises. Security and Environment - Security of our employees and protection of the environment during our activities are ensured in maximum. Appreciation - We appreciate our employees and treat them frankly and honestly. We give importance to teamwork and safe working environment. Dividend - We seek the maximum profit for our shareholders from our Company s activities. Technology - We enable the practice of high technology in our activities by following the high technology and improvements all over the world. Motivation - We provide a motivating working environment by being aware that this will increase the productivity. 6

9 Board of Directors Chairwoman Vice Chairman Executive Member Independent Member Independent Member Member Member Member Member NALAN ERKARAKAŞ ALI COŞKUN DUYAK SÜLEYMAN UYAN SÜREYYA TURGUT FERZAN ÇITICI ORHAN YÜKSEL YAKUP KAYGUSUZ CEVDET ÖZÇEVIK DOĞAN PENÇE Authorities Chairwoman, Vice Chairman as well as Members of the Board of Directors are all empowered with the authorities set forth in the relevant articles of the Turkish Commercial Code, Capital Market Law and Article 8 of our Articles of Association. Term of Office 3 years Nalan ERKARAKAŞ Mrs. Erkarakaş, firstly started to work as specialist in the Capital Market Board in 1983, served as senior officer and member of the board of directors in various banks and intermediary institutions in and has been serving as the President of the Park Holding A.Ş. Capital Markets Group since 2002 up to date. Mrs. Erkarakaş was found eligible by Young Businessmen Association of Turkey for the award of Manager of the Year in Erkarakaş additionally captured the award of Successful Businesswoman of the Year granted by Dünya Newspaper in Erkarakaş, the articles of whom were published in various newspapers and periodicals in the fields of capital markets and finance, is also member of the organizations such as TÜGİAD (Young Businessmen Association of Turkey), TKYD (Corporate Governance Association of Turkey), KOTEDER (Association of Stock Exchange Quotation Partnership Managers) and Graduates of Faculty of Political Sciences of Ankara University. She has no share in the Company. Ali Coşkun DUYAK Mr. Duyak firstly started to work in the Engineering Department of PARSAN A.Ş. in 1988 and then served as Project Coordinator in YAZEKS A.Ş. in Duyak, served as Assistant General Manager in Park Elektrik in , at the same time served as the vice chairman and member of the Board of Directors in Ciner Group Companies since then. He has no share in the Company. Süleyman UYAN Mr. Uyan firstly started to work in the field of investment banking and served as Investment Banking Coordinator in Kentbank, Assistant General Manager in Kent Yatırım, Member of the Board of Directors in Kent Portföy Yönetimi, General Manager and Executive Member of the Board of Directors of Riva Menkul Değerler since Süleyman UYAN has been a Board of Directors member and executive member of Park Elektrik. Süleyman UYAN is a member of Corporate Governance Association of Turkey. He has no share in the Company Süreyya TURGUT Süreyya TURGUT, independent member of the Board of Directors, was born in Tokat in 1951, graduated from Faculty of Political Sciences of Ankara University in Mr. TURGUT, firstly started to work as civil servant in Turkish Agriculture Equipment Office in , served as Assistant Inspector and Inspector in Ministry of Finance in , Assistant to General Manager, Member of the Board of Directors, Deputy General Manager in General Directorate of Çay İşletmeleri in and as Chief Inspector in the Ministry of Finance in and as Member of the Governmental Auditing Commission of Presidency and as the vice chairman in the same institution in He has no share in the Company. PARK ELEKTRİK ANNUAL REPORT

10 Board of Directors Ferzan ÇİTİCİ Ferzan Çitici, an independent member of the Board of Directors, worked in various judicial levels for long years. Then, he was appointed to be İstanbul-Sarıyer Chief Prosecutor in , then İstanbul Şişli Chief Prosecutor in and lastly İstanbul Chief Public Prosecutor in and afterwards he retired from his post. He has no share in the Company. Orhan YÜKSEL Mr. Yüksel, being a graduate of the Department of Business Administration of Faculty of Administrative Sciences of Marmara University, has worked in several companies in the private sector since Mr. Yüksel has served as Chief Financial Officer and at the same time as Member of the Board of Directors in Ciner Group Companies since He has no share in the Company. Yakup KAYGUSUZ Mr. Kaygusuz, graduated from the Department of Mining Engineering of the Middle East Technical University in 1990, joined our Group on March 08,1996, when he was the Manager of Turkish Coal Administration, OAL Enterprise. He has no share in the Company. Cevdet ÖZÇEVİK Mr. Özçevik, graduated as Electrical Engineer from the Ankara Governmental Engineering-Architecture Academy in 1980, joined our group on September 21, 1999, when he was working in the Soma Lignite Enterprise of the Turkish Coal Administration. He has no share in the Company. DOĞAN PENÇE Mr. Pençe, graduated from the Department of Public Administration of the Faculty of Political Sciences of Istanbul University, served as Assistant Inspector in Vakıfbank in ; as Branch Manager in the same Bank in İstanbul and worked in Regional Credits Directorate in ; as the Commercial Credits Manager in ; as Assistant to General Manager and at the same time as the Member and Chairman of the Board of Directors in Vakıf Leasing A.Ş. and Vakıf Faktoring A.Ş. in 2006; as the Vice Chairman of the Board of Auditors in Vakıfbank International A.G. Viena/Austria Bank and still serves as the Head of Finance in Park Holding A.Ş. He has no share in the Company. Board of Auditors Hakkı GÜLTEKİN Hakkı Gültekin, a graduate of Department of Economics and Finance of the Faculty of Political Sciences, served as Chief Account Specialist in the Board of Account Specialists of the Ministry of Finance of the Republic of Turkey in Gültekin, being Certified Public Accountant since 1997, is still serving as auditor in Ciner Group. Authorities As per Article 10 of our Articles of Association, duties, authorities and responsibilities of the Auditors are within the frame of the principles set forth in the relevant articles of the Turkish Commercial Code. Term of Office 1 Year 8

11 Agenda of Ordinary General Assembly Meeting ORDINARY GENERAL ASSEMBLY MEETING FOR THE YEAR 2011 OF PARK ELEKTRİK ÜRETİM MADENCİLİK SANAYİ VE TİCARET ANONİM ŞİRKETİ TO BE HELD ON MAY 30, 2012 AGENDA: 1- Opening and Organization of the Presidential Board, 2- Authorization of the Presidential Board for execution of the General Assembly Meeting Minutes, 3- Reading, discussing and ratifying the Annual Report of the Board of Directors and the report of the Board of Auditors, Independent Audit Reports as well as Financial Report including the balance sheet and the income statement for the fiscal period January 01, 2011-December 31, 2011, 4- Reading, analyzing and ratifying the Balance Sheet and Profit/Loss Statements for the fiscal period January 01, 2011-December 31, 2011, 5- Discharge by the General Assembly of the members of the Board of Directors and Board of Auditors from the activities of the year 2011, 6- Discussing and resolving at the General Assembly the proposal of the Board of Directors on distribution in cash of the gross dividend amounting to TRL 100,000,000.-, which corresponds to 67.17% of the issued capital, 7- Submission to the General Assembly - for the ratification - of the amendment of Articles 5, 6, 7, 8 of the Articles of Association and amendment draft regarding insertion of Article 21 into the Articles of Association prepared by the Board of Directors as per Communiqué Serial IV, No. 56 entered into force on December 30, 2011, Communiqué Serial IV, No. 57 entered into force on February 11, 2012; given permission upon submission of Letter dated March 27, 2012 and numbered B.02.1.SP K issued by the Capital Market Board, Letter dated April 04, 2012 and numbered B.21.0.İTG / issued by General Directorate of Internal Trade of the Ministry of Customs and Trade and Letter dated April 20, 2012 and numbered B.62.0.EP D issued by the Energy Market Regulatory Authority, 8- Submission to the shareholders at the General Assembly of the Company s Disclosure Policy, 9- Submission to the shareholders at the General Assembly of the Company s ethical principles and rules, 10- Submission to the shareholders at the General Assembly of the Company s donation and aid policy, 11- Submission to the shareholders at the General Assembly of the donation and aid made in 2011, 12- Submission to the General Assembly of the information on guarantee, pledge and mortgages given by the Company and income and benefit obtained by these third parties as per Decision dated September 09, 2009 and numbered 28/780, 13- Submission to the General Assembly of the report issued by the Board of Directors for common and sustainable transactions conducted by the Company with the related parties, 14- Election of the new members of the Board of Directors and determination of their terms of office and submission of information on the candidates of Independent Members of the Board of Directors, 15- Submission to the shareholders at the General Assembly of the information on the principles of remuneration of the members of the Board of Directors and top executives, 16- Election of the new auditor and determination of his term of office, 17- Determination of the remuneration of the members of the Board of Directors and Board of Auditors, 18- Passing resolution on appointment of DRT Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş., recommended by the Board of Auditors within the framework of the Capital Market Law and Capital Market arrangements for the year 2012, 19- Submission to the General Assembly of the Company s Dividend Distribution Policies adopted by the Board of Directors for the information of the General Assembly within the frame of the Corporate Governance Principles and Letter dated January 27, 2006 of the Capital Market Board, 20- Submission to the General Assembly - for ratification - of the matter of possibility of the shareholders controlling the company, members of the Board of Directors, top executives and their spouses and relatives including second degree consanguinity to conduct transactions, which may result in conflict of interest, for their own account or on behalf of others, to compete with and to participate in the companies engaged in such activities as per Article of Communiqué regarding Determination and Implementation of Corporate Governance Principles and Articles 334 and 335 of the Turkish Commercial Code, 21- Wishes and Closing. PARK ELEKTRİK ANNUAL REPORT

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13 Section 2 Park Elektrik in Brief Park Elektrik expanded its production capacity based on its advantage of higher reserve and achieved considerable increase in production in PARK ELEKTRİK ANNUAL REPORT

14 Net Sales 2011 TRL 173 million % TRL 84 million 12

15 Brief History Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.Ş. was incorporated on March 18, 1994 in order to run activities in the textile sector. The Company was offered to public in October The Company, which subsequently changed and made ready its commercial title and subject of activity in order to enter into the mining and energy sectors based on the amendments made in its articles of association in 2000, completely left the textile sector in Since then, Park Elektrik has been active in the field of mining. The Company has been engaged in coal-extracting and washing activities in the course of transition period until 2006 and has been producing concentrate copper production in Siirt Madenköy dating from The Company also launched cathode copper production through a contractor company in Entire of both concentrate copper and cathode copper production of the Company is being exported. In April 2009, the Company merged with a group company namely Ceytaş Madencilik Tekstil Sanayi ve Ticaret A.Ş, the shares of which are quoted in the Istanbul Stock Exchange. This merger caused the Company to acquire an asphaltite mine in Silopi, which was taken over before from the Turkish Coal Administration by the way of royalty and the investments of which were completed. Production in the mine was launched in June The Company maintains its activities in the fields of concentrate copper, cathode copper and asphaltite production. Shareholding Structure Shareholding Structure of Park Elektrik Üretim Madencilik Sanayi Ve Ticaret A.Ş. Share Rate (%) Share Amount Park Holding A.Ş ,020,050 Park Enerji Ekipmanları Madencilik Elektrik Üretim San. ve Tic. A.Ş ,148,572 Turgay Ciner ,065,983 Others ,632,638 Total ,867,243 The Shareholding Structure changed upon merger of Park Enerji Ekipmanlari A.Ş. and Park Holding A.Ş.; and the share of Park Holding A.Ş. increased up to 61.24%. Others 31.99% Turgay Ciner 6.76% Park Enerji Ekipmanları Madencilik Elektrik Üretim San. ve Tic. A.Ş 21.60% Park Holding A.Ş % Shareholding Structure of Park Holding A.Ş. Shareholding Structure of Park Enerji Ekipmanlari Mad. Elektrik Üretim San. ve Tic. A.Ş. Share Rate (%) Share Rate (%) Turgay Ciner Others 0.01 Park Holding A.Ş Others 0.16 Products COPPER What is Copper? The copper has been used by the mankind for various purposes since the ancient times and is today one of the most important metals among the basic raw materials of industry. The copper, represented by the chemical symbol Cu, is from the same group with the silver and gold. The most significant features of the copper, which has a reddish brown color, higher rate of conductivity of heat and electricity and which is a stainless metal are that it is anti-corrosive, retractable, malleable, easily formable and convenient to take the form of thin wire and sheet. The best conductive metal after silver is the copper. Currently, the copper is the second most frequently used metal. PARK ELEKTRİK ANNUAL REPORT

16 Products The copper has taken place in the mankind history since the time immemorial. Advanced technology and production possibilities caused the areas of utilization to become diversified and increase throughout the history. Annual copper consumption per capita in the developed countries is 10 kg. This figure varies between 1-2 kg in underdeveloped countries. Copper Products Ore (a type of gravel as found in natural deposits) Copper Ore Concentrate Blister Copper Refined Copper Cathode Copper Areas of use The copper has many areas of use due to advantages based on its physical and chemical features. The copper being used in production of handcrafts, ornaments, weapons and kitchen materials in history discovered new areas of use in parallel with the development of civilization; it has become one of the indispensable raw materials of electric-electronic, construction, durable consumer goods, chemistry, tourism and agricultural sectors. Even if various materials have been developed and used instead of the copper in time, the demand for the copper continued to increase. According to the data of London Metal Exchange, 42% of the produced copper is used in the field of electricelectronic, 28% in construction; 12% in communication; 9% in general consumption; and the remaining 9% in industrial machinery sector. Areas of Use of Copper on Sectoral Basis General Consumption 9% Communication 12% Construction 28% ASPHALTITE What is asphaltite? Industrial Machinery 9% The Asphaltite is a hydrocarbon with higher thermal value, composed of or originating from the petroleum. It occurs as a result of petroleum s leaving its own field and settling along the fractures around. Its calorie varies between 5,500 and 5,800 kcal/kg. This represents an energy value that is parallel to lignite and lower than the coal. Electric- Electronic 42% Park Elektrik unearths asphaltite, one of the hidden treasures of our country, and converts it to an economic value. Areas of Use The asphaltite in Turkey is used for heating purposes in the Eastern and South Eastern Regions, even if it is rare. Besides, the asphaltite gains importance as the synthetic raw material source in recent years. Extensive areas of use of the copper Illumination stuff, Electrical wires, telephone cables, electric motors, dynamos, motor winding, power switches and water pipes, Radios and televisions, household appliances such as washing machines, dish-washers, fridges and kitchen robots, Means of transport such as ship, train and automobile, Cold air machineries and equipments, Various tools, toolkits, weapons and art products, Construction raw materials, long-lived roof and outer coating, Coins. The asphaltite was first used as fuel-oil in the power plant of 135 MW owned by Silopi Elektrik Üretim A.Ş., one of the Ciner Group of Companies. The sole means of industrial consumption of asphaltite is still being realized in Turkey only by Silopi Elektrik Üretim A.Ş. 14

17 Major Financial Indicators Financial Information in Brief Summary Balance Sheet (TRL, million) Total Assets Shareholders Equity Total Liabilities Summary Income Statement (TRL, million) Net Sales Gross Profit Net Profit EBITDA Margin Profit Margins (%) Gross Profit Margin Net Profit Margin EBITDA Margin Net Profits (TRL, million) Shareholders Equity (TRL, million) Share Performance Park Elektrik shares moved in a narrow band in Depending upon adverse effects in the global monetary markets and fluctuations in the stock exchanges, ISE (Istanbul Stock Exchange)-100 index recessed by 24% in Despite those, annual decrease in Park Elektrik share prices remained limited to 10%. Park Elektrik Share Price, started with the level 3.87 in 2011, increased by 15% and reached 4.46; however, it recessed in parallel with the decrease in ISE and completed the year at the level of /01/ /02/ /03/ /04/ /05/ /06/ /07/ /08/ /09/ /10/ /11/ /12/2011 PARK ELEKTRİK ANNUAL REPORT

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19 Section 3 Assessment of the Year 2011 Despite economic stagnation in the world in 2011, the global demand for copper continued to rise up. PARK ELEKTRİK ANNUAL REPORT

20 Sectoral Changes Despite the worldwide economic stagnation in the world in 2011, the global demand for copper continued to rise up. Based on increasing demand, stimulated by China maintaining its high rate growth, a positive atmosphere is created in the copper sector and the investments did not ease down. In parallel with the developing economy in the world, a constant increase is noticed in the copper demand. Whereas the concentrate copper production increases by 16% in , the metal production only increased by an annual average rate of 1.9% within the last 10 years. Considered the last six years, a higher annual average growth rate is achieved at a rate of 2.2%. The global copper consumption is 18.6 million tons as of 2010 and the consumption in 2010 indicates an increase by 9.7% compared to the previous year. In global copper production and trading, Chile, Russia, Canada, USA, Mexico and Peru are the leading countries. In , copper production of Chile increased by 680,000 tons and production of Peru and China totally increased by 1.9 million tons. In 2011, the global copper demand was higher than the copper supply and LME Copper Prices /01/ /07/ /1/ /06/ /12/2011 Source: LME this caused the copper prices to rise up. According to data, not finalized yet, demand/supply balance was closed with demand surplus of 375,000. For the copper market specialists, the demand surplus is expected to continue in 2012 and The constant increase in the global copper demand over the years and the rate of increase in copper production falling behind the demand rendered the upward course of the prices enduring during the past 10 years. Whereas the average price of 1 ton copper was USD 1,578 in 2001, this figure increased up to USD 3,684 in 2005 and USD 7,535 in The increasing trend also continued in 2011 as well and the copper price reached 8,821 USD/ton by an annual increase of 17%. 18

21 Park Elektrik in 2011 Copper Production Park Elektrik conducts its copper production activities in two categories: concentrate copper and cathode copper. Concentrated copper production of Park Elektrik was launched at the end of The Company, producing only concentrated copper until 2011, started to produce cathode copper due to its stock-keeping facility, flexibility in sales timing and higher profit margin potential by means of sub-contracting. Sale of the produced cathode copper is also performed by Park Elektrik. The operating license of the copper mine would be under the possession of Park Elektrik by Measured copper reserve of the mining zone, estimated to have measured initial reserve of 13 million tons of ore at the time of acquisition, was revised as 40 million tons ore, 31 million tons of which is measured, according to JORC report (Joint Ore Resources Code report) issued by Micromine Consulting Services in With the help of the capacity increase the second phase of this investment in occurred as of October 2011, the 2013 and to increase its ore processing production in 2011 increased by 107% capacity up to annual 1.8 million tons. compared to the year The relevant capacity increases of the Company are realized by the way of The Company used 17,268 wmt of addition of new mills and grinders to the concentrate copper of total 77,510 wmt, existing concentrate plant. which the Company produced in 2011, for cathode copper production and In 2011, the Company, coming up the produced 2,829 tons of cathode copper. concentrate copper production target of 1,210 tons of the cathode copper, 75,000 wmt, completed the year with the produced in 2011, was sold. production volume of 77,510 wmt. The concentrate copper production volumes, As of October 2011, the Company targeted by the Company for the years reached 1.2 million tons ore processing 2012 and 2013, are successively 95,000 capacity upon investment of EUR 3.5 wmt and 150,000 wmt. million and is now targeting to complete Copper Production Change Concentrate Copper (wmt) 37,426 77, % Cathode Copper (mt) - 2,829 n.m wmt: wet metric ton, mt: metric ton The relevant report states the average grade (tenor) rate of Madenköy copper zone as 2.4%. Additionally, according to this report, the average grade (tenor) rate of 31,2 million tons of the reserve was determined to be 2.26%. Madenköy copper mine is accepted as a rich mine in respect of grade when compared to the other mines and is considered to be among the younger mines in respect of mining life. The Company increased the annual ore processing capacity from 750,000 tons up to 1,200,000 tons ore in 2011 by increasing the capacity in 2011 in parallel with the reserve increase and positive global conjuncture in the copper market. Madenköy Copper Mine Reserve Ton Cu(%) Measured 31,182, Indicated 6,433, Total Measured & Indicated 37,615, Inferred 2,206, Total Mineral Resource 39,821, Source: JORC Resource Estimate Report, Micromine Capacity Increase in Copper Operations & Production Targets Ore Processing Capacity (ton) 750,000* 1,200,000 1,800,000 Concentrate Copper Production Estimate (wmt) 77,510 95, ,000 * Capacity increase from 750,000 tons up to 1.2 million tons was realized as of October PARK ELEKTRİK ANNUAL REPORT