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Arcon Int.Resources (AIN)

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Monday 30 April, 2001

Arcon Int.Resources

Final Results

Arcon International Resources PLC
30 April 2001



                ARCON Announces Year 2000 Preliminary Results

  * Loss of IR£8.254 million due to Lower Mine Production Levels and Low
    Zinc Prices

  * Third Mining Shift Introduced to Boost Production at Galmoy

  * Drilling Results from Rapla Continue to Excite.

ARCON International Resources P.l.c. today reports a net loss, after all
charges, of IR£8.25 million for the year ended December 31, 2000. This
increase over the previous year's loss of IR£1.30 million reflects the impact
of low zinc prices, poor production levels at its Galmoy Zinc Mine, one-off
charges for repair and maintenance at the mine and various adjustments
including a provision of IR£1 million against foreign exploration investments.
In the year 2000, ARCON processed 543,000 tonnes of ore and shipped 95,000
tonnes of zinc concentrates and generated EBITDA of IR£2.56 million.

The lower production levels at Galmoy are being addressed with the
introduction of a third mining shift (implemented in December 2000) and the
benefits of this move will result in increased production going forward. In
addition, ARCON's new CEO, Mr. Kevin Ross, who joined the company at the start
of 2001, has put forward plans to increase the nominal production rates at the
mine beyond the original feasibility levels.

The gross value of concentrates sold during 2000 was IR£44.4 million (IR£43.8
million in 1999) and net turnover, after smelter charges and deductions, was
IR£21.4 million, marginally higher than in the previous year.

Exploration drilling continued on the Rapla prospect to the north-east of
Galmoy where good intersections of zinc-lead mineralisation have been
encountered over an area measuring approximately 2kms by 2kms, which is still
open ended. Further drilling will be required, however, before we can
determine the size and economic viability of this deposit.

Since year-end exploration activity has been curtailed due to concerns over
foot-and-mouth disease, but drilling recently resumed at Rapla as permitted by
the Authorities. Further ongoing drilling at the Galmoy Mine has continued to
encounter zinc mineralisation. Elsewhere in Ireland, satisfactory progress
continued on our licence blocks which are being explored in joint ventures
with our international mining group partners.


Commenting on the results the Chairman, A O'Reilly Jnr, said: 'The results for
the Year 2000 were well below expectations and are a disappointment. The
underlying cause of the poor results was the failure to achieve mine
production levels. This has been addressed by the introduction of a third
shift. In a climate of low commodity prices, our remedy is to increase our
production levels while managing our cost base and our new CEO, Mr. Kevin
Ross, has outlined his plans to increase the nominal production rates beyond
the original feasibility levels. This, combined with a continuing successful
exploration programme, will be positive for ARCON's future growth'.



ENDS.                                   Monday, 30 April 2001



For reference:  Pauline McAlester

Murray Consultants


Telephone:  353-1-6633332



Consolidated Profit and Loss Account

For the Year ended 31 December 2000

                                                                2000       1999

                                                              IR£000     IR£000
Turnover                                                      21,410     21,222

Cost of Sales
Production costs                                            (13,681)    (8,975)
Depreciation                                                 (5,053)    (4,683)

                                                            (18,734)   (13,658)

Gross Profit                                                   2,676      7,564
Operating expenses                                           (3,845)    (4,135)

Operating (Loss)/Profit                                      (1,169)      3,429
Provision against investment                                 (1,078)          -
Mineral exploration costs                                      (248)      (206)

(Loss)/Profit on Ordinary Activities Before Interest         (2,495)      3,223
Interest receivable and similar income                           215        164
Interest payable and similar charges                         (5,974)    (4,687)

Loss on Ordinary Activities Before Taxation                  (8,254)    (1,300)
Tax on loss on ordinary activities                                 -          -

                                                             _______    _______

Retained Loss for the Year                                   (8,254)    (1,300)

Profit and Loss Account, at beginning of year               (43,075)   (41,775)

Profit and Loss Account, at end of year                     (51,329)   (43,075)

                                                             =======    =======


Loss Per Ordinary Share
- Basics                                                     (2.87p)    (0.45p)
- Fully diluted                                              (2.87p)    (0.45p)

                                                             =======    =======




Consolidated Balance Sheet - 31 December 2000

                                                                     Group
                                                                2000       1999

                                                              IR£000     IR£000
Fixed Assets
Mineral Interests                                             66,103     64,401
Tangible assets                                               24,168     20,466
Financial assets                                                   -          -
                                                              90,271     84,867

                                                             _______    _______

Current Assets
Stocks                                                           483      1,417
Debtors                                                          135      1,789
Investments                                                       34      1,013
Cash at bank and in hand                                       4,490      5,138
                                                               5,142      9,357

Creditors: Amounts falling due within one year              (10,610)    (7,226)

                                                             _______     ______

Net Current (Liabilities)/Assets                             (5,468)      2,131

                                                            ________      _____

Total Assets Less Current Liabilities                         84,803     86,998

Creditors: Amounts falling due after more than one year
                                                            (69,616)   (64,229)

Provision for Liabilities and Charges                        (2,570)    (2,545)


                                                              ______    _______
Net Assets                                                    12,617     20,224

                                                              ======     ======

Capital and Reserves
Called up share capital                                       14,376     14,376
Share premium                                                 46,620     46,620
Profit and loss account                                     (51,329)   (43,075)
Foreign currency translation reserve                           2,950      2,303

                                                             _______     ______
Equity Shareholders' Funds                                    12,617     20,224

                                                              ======     ======




Consolidated Cash Flow Statement

For the Year ended 31 December 2000

                                                                  2000     1999

                                                                IR£000   IR£000

Net Cash Inflow from Operating Activities                        7,801    6,127

Returns on Investments and Servicing of Finance                (5,489)  (4,314)


Taxation                                                             -        -

Capital Expenditure and Financial Investment                   (5,384)  (3,005)

                                                                ______   ______

Net Cash Outflow before use of liquid resources and Financing  (3,072)  (1,192)

Management of liquid resources                                   (239)    1,020

Financing                                                        2,424    4,531

                                                                 _____    _____

(Decrease)/Increase in Cash                                      (887)    4,359



Consolidated Statement of Total Recognised Gains and Losses

For the Year ended 31 December 2000

                                                               2000        1999

                                                             IR£000      IR£000
Loss for the financial year attributable to
                                                            (8,254)
Group Shareholders                                                      (1,300)

Currency translation adjustment                                 647       2,092
Financial Assets                                             ______      ______
Total recognised gains and losses for the year
                                                            (7,607)         792
                                                             ======      ======


Reconciliation of Movements in Shareholders' Funds

For the Year ended 31 December 2000
                                                               2000        1999

                                                             IR£000      IR£000
Balance beginning of year
                                                             20,224      19,432
Total recognised gains and losses for the year              (7,607)         792

                                                             ______      ______

                                                                         20,224
                                                             12,617
                                                             ======      ======
Note:

 a. The financial information presented above does not constitute statutory
    accounts within the meaning of the Companies Acts. An audit report has not
    yet been issued on the accounts for the year ended 31 December 2000 nor
    have they been delivered to the Registrar of Companies.
 b. For the year 2000 the same accounting policies have been applied in the
    preparation of the accounts as were used for the 1999 accounts.
 c. The accounts for the year ended 31 December 2000 were approved by the board
    on 30 April 2001.



Cash Flow Statement

Reconciliation of Operating (Loss)/Profit to Net Cash inflow from Operating
Activities

                                                                2000       1999

                                                              IR£000     IR£000
Operating (loss) profit                                      (1,169)      3,429
Depreciation                                                   4,964      4,825
Decrease/(increase) in debtors                                 1,654    (1,497)
Decrease/(increase) in stocks                                    934      (488)
Increase/(decrease) in creditors                               1,378      (179)
Foreign exchange                                                  40         37
                                                              ______     ______
                                                               7,801      6,127
                                                              ======     ======

Analysis and reconciliation of net debt

                                                 1 January          31 December

                                                      2000 Movement        2000

                                                    IR£000   IR£000      IR£000
Cash at bank and in hand
                                                     1,634    (887)         747
Liquid resources                                     3,504      239       3,743
Bank loans                                        (66,779)  (4,489)    (71,268)
Loan stock                                      -           (2,521)     (2,521)
                                                   _______   ______     _______
Net debt
                                                  (61,641)  (7,658)    (69,299)
                                                   =======   ======     =======

                                                                           
                                                               2000        1999
                                                             IR£000      IR£000
(Decrease)/increase in cash
                                                              (887)       4,359
                                                             ______      ______
Cash (inflow) from draw down

of bank loans, net                                          (2,424)     (4,531)
                                                            
Cash outflow/(inflow) from
                                                                239     (1,020)
movement in liquid resources
Foreign exchange translation                                (4,586)     (8,781)
                                                             ______      ______

                                                            (6,771)    (14,332)
                                                            
                                                             ______     _______
Change in net debt
                                                            (7,658)     (9,973)
Opening net debt                                           (61,641)    (51,668)
                                                            _______     _______
Closing net debt
                                                           (69,299)    (61,641)
                                                            =======     =======


                                                                                
                                  

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