Thursday, November 12, 2009

ENRC Says Output Back To Pre-Crisis Levels

Eurasian Natural Resources Corp. PLC said on Thursday that production of its main commodities had nearly returned to pre-financial crisis levels, though the Kazakh miner cautioned that risks of volatility in prices and output remain.

"An economic recovery is now looking more convincing, but we see some uncertainties for the industry into 2010," Chief Executive Felix Vulis said in a statement.
The company expects 2010's full-year output at its core operations to match 2008 levels.

The London-listed Kazakh miner said total ferroalloys production for the three months to Sept. 30 decreased 7% to 413,000 metric tons compared with 444,000 tons during the same period a year earlier.

ENRC's ferroalloys division accounted for almost half of the company's earnings before interest, taxes, depreciation and amortization, or Ebitda, during the first half of the year.

ENRC's production of saleable iron ore concentrate climbed 2.4% to 2.54 million tons in the third quarter, and saleable iron ore pellet production was down 0.1% to 1.86 million tons.

ENRC's iron ore division contributed just more than a third of the company's Ebitda during the first half of the year.

Ferrochrome, the main commodity in ENRC's ferroalloys division, and iron ore are used to make stainless steel and steel, respectively.

Aluminum production was 31,000 tons during the quarter, compared with 32,000 tons a year earlier. The aluminum division accounted for less than 3% of Ebitda in the first half of the year.

Source: EasyBourse, Dow Jones

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