ENRC 3Q Ferroalloys Output falls 2.4%; Eyes 4Q Sales Growth

Nov 10. Dow Jones. LONDON

By Alex MacDonald

ENRC 3Q Ferroalloys Output falls 2.4%; Eyes 4Q Sales GrowthU.K.-listed, Kazakhstan-focused miner Eurasian Natural Resources PLC (ENRC.LN) Thursday reported lower third quarter saleable ferroalloys and iron ore output compared with the same period a year ago, but expects revenue growth to continue in the fourth quarter.

The London-listed Kazakh miner said total saleable ferroalloys production for the three months to Sep 30 fell 2.4% from a year ago to 446,000 metric tons, down from 457,000 tons during the same period a year earlier.

ENRC’s ferroalloys division accounted for about 34% of the company’s underlying earnings before interest, taxes, depreciation and amortization, or Ebitda, in the first half of 2011. Iron ore accounted for 43% of the company’s underlying Ebitda in 2010.


– 3Q total saleable ferroalloys production was 446,000 tons, down 2.4% on year.

– 3Q ferrochrome production was 317,000 tons, down 1.6% on year.

– 3Q iron ore extraction was 11.4 million tons, up 4.3% on year.

– 3Q saleable iron ore concentrate was 2.55 million tons, down 2.8% on year.

– 3Q saleable pellet production was 1.68 million tons, down 0.2% on year.

– 3Q total saleable iron ore product was 4.23 million tons, down 1.8% on year.

– 3Q aluminum production was 63,000 tons, up 1.6% on year.

– Production maintained at effective full available capacity across all products during first nine months.

– Revenue increased significantly in the first nine months driven by higher prices for main commodities and increased sales volumes

– Financial position strong: gross available funds of $1.2 billion; total debt of $1.5 billion.

– Production expected to remain at or close to effective full available capacity for the full year 2011.

– Revenue growth to continue in Q4 2011

– Annualized unit cost of sales growth expected at 20%, as previously guided.

– ENRC’s shares Wednesday closed down 18 pence or 2.6% at 668p. ENRC’s shares are down 36% since the beginning of the year.