ENRC Announces Q1 2010 Operation Results
OREANDA-NEWS. May 21, 2010. Eurasian Natural Resources Corporation PLC ('ENRC' or, together with its subsidiaries, the 'Group'), today announces its May 2010 Interim Management Statement and Production Report for the First Quarter ended 31 March 2010, reported the press-centre of KASE.
Q1 Y2010 Highlights
- Group production volumes significantly ahead of Q1 Y2009. Ferrochrome and iron ore production at effectively full capacity; aluminum production increased.
- Prices for our key commodities improved further compared to Q4 Y2009.
- Higher sales volumes for high-carbon ferrochrome and aluminum, partially offset by slightly weaker volumes for other key commodities against Q4 Y2009.
- Cost pressures; unit cost of sales increased relative to full year 2009 in all Divisions, except the Energy Division, most notably in the Ferroalloys and Alumina and Aluminum Divisions.
- First full quarter contribution from the Other Non-ferrous Division.
- Strong financial position, with gross available funds as at March 31, 2010 broadly unchanged from December 31, 2009.
Recent Developments
- Acquisition of Chambishi, a Zambian copper and cobalt producer, and Comit Resources for USD300 million, announced in February and completed in full in early May.
- Acquisition of a 12.2% stake in Northam Platinum, a major platinum producer in South Africa, for USD296 million, announced in April.
- The aluminum smelter reached its full run rate capacity of 250 ktpa in May 2010.
Outlook for Y2010
- Production expected to be at broadly full capacity for the full year.
- Realised prices for the full year, for ferrochrome, iron ore and aluminum expected to be well ahead of Y2009. The pace of recent price increases is unlikely to be sustained through the remainder of the year.
- Total costs are expected to rise very significantly against Y2009 – including higher production, the new Other Non-ferrous Division and increasing output prices. However, management anticipates unit costs of sales (excluding MET/Royalties) to be at approximately 2008 levels.
- Revenue growth rate to well exceed total costs growth.
- Planned full year 2010 capital expenditure unchanged at approximately USD1.5 bn.
"We were pleased with our performance in the first quarter. For the full year 2010, and as we indicated in our recent Preliminary Results, we anticipate production to be at effectively full capacity and for commodity prices to remain strong. We are convinced of good growth prospects in our markets on the back of a sustained economic recovery. With increases in costs, due to higher production and input prices, we will maintain our focus on controlling unit cost of sales. Management continues to seek to maximise organic growth across our businesses and to develop the Group through capital expenditure and attractive acquisitions."
Комментарии