Sadovaya Group S.A. announced unaudited consolidated earnings and operating results for the first quarter ended March 31, 2012. For the quarter, the company reported revenue of $14,586,653 compared to $20,427,906 for the same period a year ago. Operating profit was $77,471 compared to $3,706,976 for the same period a year ago. Profit before tax was $454,058 compared to $3,420,270 for the same period a year ago. Profit for the period was $746,389 compared to $3,332,002 for the same period a year ago. Earnings per share were $0.02 compared to $0.08 for the same period a year ago. Net cash flows used in operating activities was $6,874,044 compared to $6,303,494 for the same period a year ago. Total capital expenditure was $3,077,241 compared to $1,161,281 for the same period a year ago. EBITDA was $1.1 million. Total revenue decreased 29% comparing to first quarter of 2011 driven mainly by drop in sales volumes. For the quarter, the group sold 193,000 tones of coal. Sales volumes reflected seasonal decrease in demand from power stations. Coal price remained unchanged, however the average group sales price slightly increased due to reduced sales to power plants. During the quarter the group mined 103,000 tonnes of coal, or increased 4% comparing to first quarter of 2011, despite the effects of repair works at Sadovaya mine and closure of the longwall on Rassvet-1 mine. For the first quarter ended March 31, 2012, the company reported impairment of receivables of $40,592. The company provided financial guidance for the second quarter of fiscal 2012. Current operations in second quarter of 2012 improved substantially and it expects the second quarter 2012 financial results will reflect this trend accordingly.