ENRC Announced Operating Results for 3Q, 2010
OREANDA-NEWS. November 18, 2010. Eurasian Natural Resources Corporation PLC ('ENRC' or, together with its subsidiaries, the 'Group') announces its November 2010 Interim Management Statement and its Production Report for the Third Quarter ended 30 September 2010, reported the press-centre of KASE.
Highlights for the 9 Months to 30 September 2010
- Production maintained at effectively full available capacity across all of our principal commodities. Continued increase in copper and cobalt production;
- Financial performance underpinned by strong production and sales volumes and a positive pricing environment;
- Balance sheet position remained strong; gross available funds of USD824 million.
Recent Developments and Outlook for the Full Year 2010
- Commodity driven growth and diversification strategy enhanced through the acquisitions of stakes in Camrose in Africa, and in Brazil, of BML, MIBA and
MPB;
- Secured an additional US\\\\$0.5 billion of facilities to finance growth projects, with a further US\\\\$0.5 billion being finalised.
- Production expected to remain at full capacity in Q4 2010, with continued strong demand for the Group's products;
- Outlook remains largely unchanged from the Half Year. Revenue and cost growth broadly in line with expectations;
- Full year effective tax rate now expected to be approximately 28-29%;
- Planned capital expenditure to be approximately USD1.3 billion;
- Positive longer term economic outlook; growth in China and increased forecasts for stainless steel production strengthen the Group's position.
"During the period we continued to operate at full capacity and expect to do so for the remainder of the year, reflecting strong underlying demand for our products. Revenue and cost growth is broadly in line with our expectations. Cost management remains a priority for the Group in order to maintain our advantageous cost position. Overall the outlook remains largely unchanged and the Group is well positioned for further growth. We also secured significant funding to strengthen our ability to finance the Group's growth project pipeline."
I am pleased to report continued progress in our African operations, not least through the potential offered by exploration and the latest acquisitions. With our Camrose venture, the recent ruling of the ICC arbitration tribunal, removing prohibitions on the DRC transferring the KMT licence, further validates our comfort in our legal due diligence. Our recent iron ore acquisitions in Brazil will provide access to the seaborne iron ore trade and have built scale in this business. Our assets in Africa and Brazil, and our investment programme, will significantly enhance the growth potential of the Group." Felix J Vulis, Chief Executive Officer.
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