EX-99.1 3 t09634exv99w1.txt EXHIBIT 99.1 [ZEMEX LOGO] NEWS RELEASE FOR IMMEDIATE RELEASE ZEMEX CORPORATION ANNOUNCES FIRST QUARTER 2003 EARNINGS RESULTS TORONTO, ONTARIO - APRIL 23, 2003 - ZEMEX CORPORATION (NYSE, TSE: ZMX) announced today that net income of $0.01 per share for the first quarter ended March 31, 2003 unchanged from the first quarter of 2002. Revenue increased 35% from $15.0 million in the first quarter of 2002 to $20.2 million in the first quarter of 2003. Of the increase, 73% or $3.8 million was due to acquisitions completed in February and March of 2002. Operating income increased from $100,000 for the first quarter of 2002 to $600,000 for the current year period. Operating income was adversely impacted by operational problems experienced at the Spruce Pine feldspar plant and one time legal expenses associated with settlement of the Hecla Mining litigation. R. Peter Gillin, President of the Corporation, said, "In general, the industrial minerals business has been steady in most of our product lines and appears to be following seasonal patterns and strengthening into the second quarter." Our aluminum recycling group had a good first quarter continuing the turnaround that began in the third quarter of 2002. As previously announced, a Special Meeting of Securityholders is scheduled to be held on May 5, 2003 with respect to a proposed Plan of Arrangement. The proposed Plan of Arrangement, if approved by shareholders and optionholders and the court, will result in the acquisition by a controlled affiliate of Cementos Pacasmayo S.A.A. ("Pacasmayo") of all of the outstanding common shares and in-the-money options of Zemex on the basis of a cash price of US$8.80 per share. Pacasmayo is a publicly listed corporation on the Lima Stock Exchange (LSE), Peru and is related to the Hochschild Organization. Following approval by Securityholders, Zemex will seek court approval. The transaction is expected to be effective May 8, 2003. Zemex Corporation (http://www.zemex.com) is a diversified producer of industrial minerals and specialty products and, through its Alumitech division, reprocesses aluminum drosses. Zemex currently operates facilities across the United States and Canada. Its products are used in a variety of commercial applications and are sold throughout the United States, Canada and Europe. For further information, please contact: Peter Gillin President and Chief Executive Officer 416-815-3171 Allen J. Palmiere Vice President and Chief Financial Officer 416-365-8091 This press release may contain "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward statements include statements regarding the intent, belief or current expectation of the Corporation and members of its senior management team, including, without limitation, expectations regarding completion of the acquisition. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by the Corporation. - tables follow - ZEMEX CORPORATION CONSOLIDATED BALANCE SHEETS (All amounts are in thousands of U.S. dollars)

Prepared in accordance with Canadian GAAP ZEMEX CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31 (All amounts are in thousands of U.S. dollars, except share and per share amounts)

Prepared in accordance with Canadian GAAP ZEMEX CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31 (All amounts are in thousands of U.S. dollars)

Prepared in accordance with Canadian GAAP

ZEMEX CORP 8-K