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Recylex S.A. (RX.PA)

Paris - Paris Delayed price. Currency in EUR
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1.84800.0000 (0.00%)
As of 5:20PM CEST. Market open.
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Previous close1.8480
Open1.8420
Bid0.0000 x 0
Ask0.0000 x 0
Day's range1.8160 - 1.8680
52-week range1.3000 - 4.9450
Volume7,005
Avg. volume0
Market cap47.794M
Beta (5Y monthly)1.93
PE ratio (TTM)N/A
EPS (TTM)-3.0300
Earnings dateN/A
Forward dividend & yieldN/A (N/A)
Ex-dividend date04 Jul 1990
1y target est3.46
  • Globe Newswire

    Information as of September 23, 2020

    The Recylex Group (Euronext Paris: FR0000120388 - RX) publishes today an information as of September 23, 2020.As a reminder1, the Recylex share listing remains suspended until the company is able to reliably communicate on its going concern outlook. This depends on several structuring items2 which are currently being worked on, approached or constantly monitored by the management team, and more particularly: * The ability of Weser-Metall GmbH to continue its activities and, depending on its strategic orientations following its insolvency procedure, to continue to source secondary materials from Recylex S.A., Weser-Metall GmbH being Recylex S.A.'s main customer, * The restructuring of Recylex S.A.'s financial and non-financial debt in order to ensure that the cost of short and medium-term debt is compatible in the future with the Group’s new and smaller scope of consolidation, including: * The outcome of the request concerning the restructuring of the staggered payment plan for the fine imposed on the Group in 2017 by the European Commission, * The outcome of ongoing discussions regarding the restructuring of the loan from Glencore International AG concluded in 2014, * The outcome of the request formulated concerning the temporary suspension of the rehabilitation works of L’Estaque site and the postponement of the date of completion of the works. Only when these items have been resolved can the continuation of Recylex S.A.'s activity be considered possible.Sebastian Rudow, Chairman and Chief Executive Officer of Recylex S.A,, commented:"Due to the insolvency of the former German subgroup, Recylex S.A. faces major new challenges and its horizon is still uncertain. In view of our existing business relationships, the insolvency procedure of Weser-Metall is of particular importance for Recylex S.A. According to our information, the insolvency proceeding is expected to continue for several more weeks. If Weser-Metall is sold by the insolvency administration, our first priority will be to negotiate a contract with the future Weser-Metall company in order to pursue the sale of our materials. However, it is crucial to continue to look for other outlets in the medium term. We are already in discussions with potential new customers, but no commitment has yet been signed. At the same time, we are studying the technical possibilities of adapting our industrial processes to the different qualities required by several players in the market. In doing so, we must also take into account our facilities that have been in operation for many years and do not have the latest technical processes. We will therefore also have to invest in the coming years. The Group's employees are working hard to stabilize our production and improve our productivity. Another important priority to ensure our future viability is to significantly improve the purchasing conditions for used lead batteries. We are therefore continuing to develop our supplies in this direction. Finally, we have entered into decisive negotiations to restructure our liabilities. However, this will take several months and will depend on our ability to generate sustainable profits from our activities. Only without the burden of our existing debt and with a regained competitiveness, that we will be able to create a new solid base for the future of the Recylex Group. » 1. Development of the insolvency procedure of Weser-Metall GmbHThe German company Weser-Metall GmbH, which operates the Nordenham lead smelter and is Recylex S.A.'s main customer, has just completed the preliminary phase of its insolvency procedure under German law which was started on May 14, 2020. At the end of this phase, Recylex was informed that only one potential buyer of the assets of Weser-Metall GmbH remained in the running, namely Glencore International AG.Consequently, Recylex is closely monitoring developments in this procedure, which is being conducted independently by the insolvency administration who currently manages Weser-Metall GmbH. According to the information available to Recylex, no date has been set for the finalization of the discussions in this procedure.In this context, Recylex S.A. is continuing to deliver recycled materials to Weser-Metall GmbH with prepayments. However, Recylex S.A.'s going concern requires it to secure a long-term horizon in terms of outlets for its materials. Recylex S.A. is therefore continuing to look for other customers in Europe and is awaiting the outcome of the insolvency proceedings of Weser-Metall GmbH, and in the event of a positive outcome, to be able to enter into longer-term commercial negotiations with the new shareholder of Weser-Metall GmbH. 1. Update on the financial situationAs of August 30, 2020, the Group's net debt (new scope of consolidation1) amounted to €42.6 million (€53.2 million gross debt) and consisted mainly of: * The €16.0 million loan (fully drawn down) concluded in 2014 by Recylex S.A. with Glencore International AG and accrued interest of €0.8 million over the period, * The remaining balance of the fine imposed on the Group in 2017 by the European Commission in the amount of €24.4 million, * Rescheduled liabilities from the continuation plan (finalized in 2015) and the amount of the claw back clause, for a total of €12.0 million.To these debts should be added4 provisions for the rehabilitation of L’Estaque site and former mines in the amount of €9.0 million and a provision for contingencies of €4.0 million for litigation relating to claims for damages by 546 former employees of Metaleurop Nord S.A.S3.In this context, Recylex S.A.'s ability to continue as a going concern depends on the fulfilment of several structuring assumptions2, relating not only to the continuation of business with Weser-Metall GmbH, but also to the restructuring of Recylex S.A.'s financial and non-financial debt. Due to the developments caused by the SARS-CoV-2 pandemic on its financial situation and to all these uncertainties, Recylex S.A. has in particular1: * Initiated discussions with Glencore International AG in order to obtain an extension beyond October 31, 2020 of the waiver of its right to terminate immediately the €16.0 million loan granted in 2014 and an adjustment of the interest charge, * Initiated discussions with the European Commission regarding the staggered payment plan for the fine imposed on the Group in 2017, * Solicited from the relevant authorities the temporary suspension of the rehabilitation works at L'Estaque site until December 31, 2021 and the postponement of the date of completion of the rehabilitation works until December 31, 2024. 1. Update on current legal proceedings concerning Recylex S.A.The document summarizing the proceedings concerning Metaleurop Nord S.A.S. and Recylex S.A., updated on September 15, 2020, is available on the Finance section of the Recylex Group website.Concerning the claims of 187 former employees of Metaleurop Nord S.A.S. for compensation for dismissal without fair cause and/or prejudice of anxiety as a reminder, on May 24, 2018 the French Supreme Court (Cour de cassation) on the one hand upheld the rulings of the Douai Court of Appeal in so far as they ruled that Recylex S. A. was not co-employer of the former employees of Metaleurop Nord S.A.S. and, secondly, reversed and cancelled these rulings in so far as they had ordered Recylex S.A. to pay damages to these 187 former employees (for a total amount of €7.8 million in 2017).Following this decision, Recylex proposed an amicable settlement in favor of all former employees, involving the reimbursement of 50% of the sums paid by the company in 2017. To date, 86 of them have accepted this solution (in the amount of approximately €1.9 million), 84 have refused and seized the Amiens Court of Appeal on referral after Cassation and 17 have not taken action nor appealed. The company has given a complementary deadline in this respect after which it will use the means at its disposal to obtain reimbursement of these amounts. 1. Appointment of a new director of Recylex S.A.On September 3, 2020, the Board of Directors decided to appoint Nick Popovic as Director, in replacement of Christopher Eskdale, who resigned due to personal projects. The appointment of Nick Popovic will be subject to ratification by the company's next Shareholders' Annual General Meeting.Nick Popovic has nearly 30 years of experience in the metals business within the Glencore Group. He is a specialist in the lead and zinc industries.The Board of Directors would like to warmly thank Christopher Eskdale for his active participation and investment in the work of the Board throughout his term of office beginning in 2014. 1. Forecasted financial agenda * Financial information as of September 30, 2020: Thursday November 5, 2020 (after market close). 1 See Note 39 "Subsequent events" - section "Changes in the scope of consolidation" and the press releases of May 14, 2020, May 20, 2020, June 18, 2020 and July 30, 2020.2 See Note 39 "Subsequent events" - section "Financial position of Recylex S.A. and assessment of the going concern assumption" to the 2018 consolidated financial statements and the note "Subsequent events" to the 2018 parent company financial statements.3 See Note 14 "Provisions" to the 2018 consolidated financial statements. 4 Amounts as of August 30, 2020. ***Disclaimer: This press release is a non-official translation into English of the press release of the same date issued in French language and is provided solely for the convenience of English-speaking users. This press release should be read in conjunction with and construed in accordance with French law. ***Raw materials from urban minesThe Recylex Group is a European specialist in the recycling of lead, zinc and polypropylene.For more information about the Recylex Group: www.recylex.eu***Press & Investor contact: T +33 (0)158 47 29 91 | E info@recylex.euRecylex S.A. | Registered office: 6 place de la Madeleine | 75008 Paris | FranceAdministrative office: 79 rue Jean-Jacques Rousseau | 92158 Suresnes Cedex | FranceAttachment * Recylex S.A. Information as of September 23 2020

  • Reuters

    Germany blocked Chinese metals takeover on military concerns - sources

    The German government rejected a bid by China's Vital Materials Co to buy PPM Pure Metals last month due to concerns about the target company's sales to the German military, two sources with knowledge of the matter said. Vital Materials, the world's top minor metals producer, put together a bid to save the firm but the German defence ministry did not want it to be acquired by a Chinese company because PPM sold some products to the military, one of the sources said. In April, Germany agreed to tighten rules to protect domestic firms from unwanted takeovers by companies from non-European Union countries.

  • Globe Newswire

    Recylex S.A. - Financial information at June 30, 2019

    The Recylex Group (Euronext Paris: FR0000120388 - RX) today released its financial information at June 30, 2020. Following the insolvency procedures opened on May 15, 2020 under the German law1 for the companies previously forming the German subgroup of Recylex, these entities2 have been fully deconsolidated as of the date of the opening of these procedures. The published consolidated sales at June 30, 2020 therefore include the sales generated by these entities up to the same date. In order to allow comparison with the 2020 figures, Recylex Group's consolidated sales for the six months ended June 30, 2019 is also presented on a pro forma basis, by restating the consolidated sales of the German entities for the same period as for the first half of 2020.In million of euros At June 30, 2020 At June 30, 2019 Pro forma2 at 30 June 30, 2019 Change (%) Change on a pro forma basis (%) Lead 72.1 94.1 71.1 -23% +1% Zinc 20.6 43.4 28.5 -53% -28% Special metals 5.5 9,1 5.8 -40% -5% Plastic 3.8 6.9 7.2 -45% -47% Total 102.0 153.5 112.6 -34% -9% IFRS data, figures unaudited.Sebastian Rudow, Chairman and Chief Executive Officer of Recylex S.A, commented:“Operations in the first half of 2020 were marked by the effects of the SARS-CoV-2 pandemic, the consequences of which are still being felt today. While there has been a very slight improvement in zinc prices recently, lead prices remain at a historically low level. However, during this period, the prices of used lead-acid batteries did not decrease. In addition, demand for recycled polypropylene is still weak. The Group's activities therefore continue to be penalized by these deteriorated general conditions. Recylex S.A. is today still in a difficult and uncertain situation: the continuation of its activities depends particularly on the future of Weser-Metall GmbH, currently the main customer for secondary materials sold by Recylex. Although Recylex S.A. has no control over Weser-Metall’s insolvency procedure under German law nor over its timetable, we are keeping a very close eye on its development and progress. At this stage of the procedure, we are also aware that it is still premature to know what potential solutions will be put in place by Weser-Metall; it is a process that will take several months. In the meantime, we are focusing our efforts on developing a sustainable future in the interest of our employees, shareholders and partners. Our current priorities are to expand our customer base and to stabilize our operational activities.” 1\. Trend in metal prices to June 30, 2020 (in euros)In euros per tonne First half 2020 average First half 2019 average Change (%) Lead price 1,598 1,736 -8% Zinc price 1,857 2,419 -23% €/$ exhange rate 1.1022 1.1298 -2% Source: London Metal Exchange.The average lead price in the first half of 2020 was €1,598, down 8% compared to the average for the first half of 2019. Between January 2, 2020 and June 30, 2020, lead prices fell by 6%.The average zinc price in the first half of 2020 was €1,857, down 23% from the average in the first half of 2019. Between January 2, 2020 and June 30, 2020, the zinc price fell by 11%, with a very sharp drop from January to March 2020. The average €/$ exchange rate was down slightly by 2% compared to the first half of 2019 to reach 1.1022. Between January 2, 2020 and June 30, 2020, the €/$ exchange rate remained stable. 2\. Breakdown of consolidate sales to June 30, 2020 relative to June 30,2019 Consolidated sales at June 30, 2020 amounted to €102.0 million. Restated consolidated sales3 at June 30, 2020 amounted to €108.0 million.2.1  Lead segmentThe Lead segment accounted for 71% of consolidated sales at June 30, 2020.Its sales totaled €72.1 million at June 30, 2020, down 23% compared to June 30, 2019 on a reported basis due to the deconsolidation of the German entities. The evolution of sales on a comparable consolidation scope (pro forma basis) was stable: the decline in Weser-Metall's lead production due to the maintenance shutdown in March-April 2020 was offset by the increase in sales of by-products from the smelter as well as the tolling carried out by the lead-acid battery recycling plant in Germany.Consolidated sales for the second quarter of 2020 reached €18.1 million, down 63% on a reported basis, again mainly due to the deconsolidation of the activities of the former subsidiaries Weser-Metall GmbH and Harz-Metall GmbH, and down 29% on a pro forma basis, mainly due to the maintenance shutdown at Weser-Metall GmbH.In this context, Recylex S.A. recycled 31,900 tonnes of used lead-acid batteries in the first half of 2020 (down 16% compared with the first half of 2019). Recylex S.A. continues to supply materials to Weser-Metall GmbH, with prepayments given its ongoing insolvency procedure.Beyond the very slow and fragile recovery observed in the automotive sector, the activity of the Lead segment in the second half of 2020 will be highly dependent on the evolution of the insolvency procedure of Weser-Metall GmbH, being Recylex S.A.'s main customer as of today. Recylex's level of activity and its going concern4 prospect are particularly dependent on Weser-Metall GmbH's ability to continue its operations and to continue to source secondary materials from Recylex S.A. It should be noted that Recylex has been informed that production at the Nordenham smelter had been stopped for financial reasons from July 18, 2020 to July 21, 2020. While Recylex S.A.'s objective is to remain a key supplier of Weser-Metall GmbH in the future, subject to the uncertain development of this process and its business model, Recylex is actively pursuing its development of other commercial outlets, with recent positive marks of interest.2.2  Zinc segmentThe Zinc segment accounted for 20% of consolidated sales at June 30, 2020.Consolidated sales reached €20.6 million at June 30, 2020, down 52% compared to June 30, 2019 on a reported basis due to the deconsolidation of the German entities and the sharp fall in the zinc price over the period. Consolidated sales on a comparable basis (pro forma) were down 28%: the sharp fall in the zinc price combined with deteriorating commercial conditions were offset by the absence of maintenance shutdowns over the period; a scheduled major maintenance shutdown at Harz-Metall GmbH took place between the first and second quarters of 2019 (whereas no major maintenance shutdown took place in the first half of 2020). In the second quarter of 2020, consolidated sales reached €4.0 million, down 81% on a reported basis, again mainly due to the deconsolidation of the former subsidiaries Harz-Metall GmbH and Norzinco GmbH, and down 41% on a pro forma basis, also due to the very sharp fall in zinc prices and the significant deterioration in commercial conditions despite the absence of any major maintenance shutdown during the period. It should be noted that following the deconsolidation of the German entities given their insolvency procedures under the German law, the Zinc segment consists now only of the 50% participation in Recytech S.A., whose sales are not included in the consolidated sales under IFRS but only in the restated sales3. Zinc segment’s restated sales3 amounted to €26.5 million at June 30, 2020, down 33% compared with the first half of 2019 on a pro forma basis.2.3  Special Metals segmentThe Special Metals segment represented 5% of consolidated sales at June 30, 2020.Sales reached €5.5 million at June 30, 2020, down 40% compared to June 30, 2019 on a reported basis and down 5% on a pro forma basis.In the second quarter of 2020, sales totaled €1.2 million, down 73% on a reported basis, mainly due to the deconsolidation of the activities of PPM Pure Metals GmbH, and stable on a pro forma basis.It should be noted that following the deconsolidation of PPM Pure Metals GmbH given its insolvency procedure under the German law, the Special Metals segment no longer exists within the scope of the Recylex Group's activities.2.4  Plastics segmentThe Plastics segment accounted for 4% of consolidated sales at June 30, 2020.Sales totaled €3.8 million in the first half of 2020, down 45% compared with the first half of 2019 on a reported and 47% on a pro forma basis.In the second quarter of 2020, sales reached €0.8 million, down 76% on a reported basis and 78% on a pro forma basis. Given the very sharp slowdown in global demand for recycled polypropylene, particularly in the automotive sector weakened by the effects of the SARS-CoV-2 pandemic, C2P S.A.S.'s activity in France was drastically reduced in April 2020 and gradually resumed starting from May 2020, without reaching yet a normal level of activity. Short-time working measures were introduced for employees.It should be noted that following the deconsolidation as of April 30, 2020 of C2P GmbH given its insolvency procedure under the German law, the Plastics segment now consists solely of the activities of C2P S.A.S. in France. 3\. Update on the financial situationAt June 30, 2020, the Group's net debt (new scope1) amounted to €40 million (€53 million for gross debt) and mainly comprises: * The €16.0 million loan from Glencore International AG to Recylex S.A. in 2014 and accrued interest of €0.6 million over the period, * The outstanding balance of the fine imposed on the Group in 2017 by the European Commission in the amount of €24.5 million, * Rescheduled liabilities from the continuation plan (finalized in 2015) and the amount of the claw back clause, for a total of €12.0 million.In this context, Recylex S.A.'s ability to continue its operations as a going concern depends on the fulfilment of several structuring assumptions4. These assumptions relate not only to the continuation of business with Weser-Metall GmbH, but also to the restructuring of Recylex S.A.'s financial and non-financial debt so that the cost of short and medium-term debt in the future is compatible with the new and smaller scope of consolidation as well as future cash generation. Due to the developments caused by the SARS-CoV-2 pandemic on its financial situation and given all these uncertainties, Recylex S.A. has therefore: * Obtained from Glencore International AG, the waiver until October 31, 2020 of its right to terminate immediately the €16.0 million loan granted in 2014 (loan fully drawn down). This deferral may be extended under certain conditions beyond October 31, 2020, in particular pending the insolvency procedure of Weser-Metall GmbH insofar as Recylex S.A. continues to sell secondary materials to the Weser-Metall GmbH, * Solicited from the European Commission, the temporary suspension of the fine staggered payment plan as well as the adaptation of the payment plan, *  Solicited from the relevant authorities the temporary suspension of the rehabilitation works at the l'Estaque site until December 31, 2021 and the postponement of the date of completion of the rehabilitation works until December 31, 2024.The trading of the Recylex S.A. ordinary shares remains suspended until Recylex S.A. is in a position to reliably communicate on its situation and its capacity to pursue its activities. 4\. Forecasted financial agenda * Financial information as of September 30, 2020: Thursday, November 5, 2020 (aftermarket closing). 1 See press releases dated May 14, 2020, May 20, 2020 and June 18, 2020. 2 Weser-Metall GmbH, Harz-Metall GmbH, Norzinco GmbH and PPM Pure Metals GmbH as well as Recylex GmbH, C2P Germany GmbH and Recylex Grundstücksverwaltungsgesellschaft mbH.3 To assess the performance of the Zinc segment, the Group provides restated financial data including the share of Recytech S.A. (50% interest), using the proportional integration method, although this method is not permitted under IFRS. See Note 19 to the 2018 consolidated financial statements.4 See Note 39 to the 2018 consolidated financial statements and the Note "Subsequent events" to the 2018 parent company financial statements. ***Raw materials from urban minesThe Recylex Group is a European specialist in the recycling of lead, zinc and polypropylene. For more information about the Recylex Group: www.recylex.eu***Disclaimer: This press release is a non-official translation into English of the press release of the same date issued in French language and is provided solely for the convenience of English-speaking users. This press release should be read in conjunction with and construed in accordance with French law. This press release may contain forward-looking statements that do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets. These statements are by their nature subject to risks and uncertainties as described in the Company’s annual report available on its website(www.recylex.eu). Further information about Recylex is available from its website (www.recylex.eu). The summary document of the proceedings concerning Metaleurop Nord S.A.S. and Recylex S.A., updated on July 6, 2020, is available on the Finance section of the Recylex Group's website.***APPENDICESQuarterly evolution of metal prices averagesIn euros per tonne First quarter 2020 Second quarter 2020 First quarter 2019 Second quarter 2019 Lead 1,675 1,518 1,793 1,677 Zinc 1,930 1,780 2,380 2,459 Source: London Metal Exchange.Consolidated sales by quarter and segmentIn million of euros First quarter 2020 Second quarter 2020 First quarter 2019 Second quarter 2019 Published data Second quarter 2019 Pro Forma Data Lead 54.0 18.1 45.8 48.3 25.2 Zinc 16.7 4.0 21.8 21.6 6.8 Special Metals 4.3 1.2 4.6 4.5 1.2 Plastics 2.9 0.8 3.6 3.3 3.7 Total 77.9 24.1 75.8 77.7 36.9 IFRS data, unaudited figures.Recylex S.A.’s salesIn million of euros Six months to June 30, 2020 Six months to June 30, 2019 Change (%) Lead segment 22.5 30.8 -27% Services to Group companies 0.7 1.2 -42% Total sales 23.2 32.0 -28% IFRS data, unaudited figures.Attachment * Recylex S.A. - Financial information at June 30 2020