Asked about the full year outlook, managing director Max Ould told reporters: ``We remain very confident. There are some estimates in the market place and we are very comfortable with them.''

Ould said the estimates were for a net profit before abnormal items of about A$50 million in the year ending June 30. It achieved a 1997/98 net profit of A$43.7 million, up 40 per cent.

WestMet rescinds Padaeng runs a 105,000 tonnes per year zinc refinery in northern Tak province and zinc mines in the same province.

``PDI were unable to meet the essential conditions, and therefore, Western Metals will make no further payments,'' managing director Rod Webster said in a statement.

``We are, however, keen to continue to support our existing investment and obligations to Padaeng's management, raw materials programme and export sales.''

Western Metals is Padaeng's second biggest shareholder with a 13 per cent stake.

Webster said information provided late last week raised serious concerns about the timely granting of the critical mining lease applications covering extensions to the known ore body at the Mae Sot zinc mine.

``Security of title and the ability to mine the extensions to the ore body is fundamental to our strategy for investment in Padaeng,'' he said.

Western Metals entered into the agreement with Padaeng in October.

It said then it would focus its efforts on exploration to extend the Mae Sot ore body and increase the amount of locally sourced silicate ore to the Tak smelter.

``This was Western Metals' Prime objective,'' it said.