OREANDA-NEWS. September 15, 2009. The Estonian rare-earth metals producer AS Silmet made a profit of 22.4 million kroons (EUR 1.4 mln) last year; in 2007 the company made a loss of 3.6 million kroons.

On the basis of Silmet's finacial year 2008 report the company's operating profit was 33.3 million kroons last year; the year before the operating loss was 2.8 million kroons.

The profit made it possible to cover last year's loss and increase equity to 173.5 million kroons, the report said.

Silmet's sales proceeds last year totaled 488.5 million kroons, nearly 20 percent more than in 2007. The company achieved its growth in sales thanks to physical growth in the sales volume as well as to higher prices of ready-made products.

Sales in European countries accounted for 236.9 million kroons of the sale proceeds, followed by the United States, 122 million, and Japan 82.4 million kroons.

The company points out in its report that it managed to double the sales of rare-earth metals, thus becoming a real alternative to Chinese products.

In connection with the contraction of sales in Q4 last year and unclear outlooks of the market conditions of rare-earth metals the company postponed the implementation of its long-term investment programs.

Last year Silmet had an average of 527 employees, over the year the average number of employees contracted by 22.

Silmet's mother company s the Swiss-registered Zimal S.A.