Global Atomic Announces 2019 Results - Seite 3

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EAFD Business

The EAFD Business operating results were significantly lower than 2018 results due to the Iskenderun plant shutdown from the end of January to the beginning of September for the construction and commissioning of the new zinc plant. The Iskenderun plant now has a capacity to process 110,000 tonnes EAFD per annum, an increase from the 65,000 tonne per annum previous capacity. The total cost for the modernization and expansion was US $26.6 million.

The plant modernization and expansion was funded by cash on hand, loans from a Turkish bank and loans from Befesa. At year end 2019, the loans from Befesa totalled US $16.85 million and bank loans totalled US $2.0 million. Subsequent to year end, final payments were made on the construction, increasing the bank loans to US $6.0 million. The bank loans mature in 12 months but are expected to rollover and bear interest at rates of 3.3% to 3.8%. The Befesa loans mature between May and December 2021 and bear interest at rates of 5.9% to 6.6%.

Operating results of the joint venture are as follows:

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1. EBITDA is a non-IFRS measure, does not have a standardized meaning prescribed by IFRS and may not be comparable to similar terms and measures presented by other issuers. EBITDA comprises earnings before income taxes, interest expense (income) and financing expense (income), amortization expense, and other expenses including management fees, sales commissions; gain on sale of property, plant and equipment and impairment charges.
2. The Turkish entities qualified for a 55% investment tax credit incentive on the TL 143.5 million qualified investment in the new plant. The total credit is TL 78.9 million, of which TL 5.0 million was recognized as a deferred tax asset in 2018 and a further TL 73.9 million was recognized in 2019. Of the credits available, TL 1.7 million were used to offset taxes otherwise payable in 2019, leaving a carry-forward balance of TL 77.2 million at year end (C$ 16.9 million).

Underlying production statistics for the EAFD Business were as follows: