/KASE, April 9, 10/ - EURASIAN NATURAL RESOURCES CORPORATION
PLC (London), listing on Kazakhstan Stock Exchange (KASE), provided KASE
with a press release dated March 24, 2010:
Quotation begins
Financial Highlights for Y2009
- Resilient performance in the face of weaker market demand and lower prices.
A marked recovery in the result of H2 2009 versus H1 2009.
- Underlying EBITDA fell 65%, to US$1,462 million; excluding US$210 million
devaluation gain.
- Earnings per share (before exceptional items) fell 61%, to US 81 cents.
- Full year dividend US 12 cents per share; payout ratio of 15% in line with
policy.
- Good control of costs; total costs decreased 17%, including cost of sales
falling 7%.
- Strong balance sheet; gross available funds of US$1,021 million and
borrowings of US$428 million.
Business Highlights for Y2009
- Management's swift response to the downturn and the sales leverage of the
Group's strategic location.
- Retention of the labour force facilitated a rapid return to effective full
capacity.
- Full year 2009 production well ahead of our expectations held at the
beginning of 2009. Production of the main ferroalloys and iron ore products
and of alumina and coal broadly stable versus 2008. Production of aluminium
and electricity ahead.
- Ferroalloys and Iron Ore Divisions in Kazakhstan restored to effective full
capacity by Q4 2009.
- Maintained our low cost advantage.
- Capital expenditure US$1.1 billion. Highlights: Ferroalloys - second 700kt per
annum pelletiser completed; Alumina and Aluminium - Phase 2 of the
aluminium smelter; Energy - overburden stripping equipment.
- Acquisition of a 25% stake in Shubarkol, a coal business in Kazakhstan, for
US$200 million. Diversified the Group with the acquisition of CAMEC, a
copper and cobalt producer in the DRC, for US$931 million.
Outlook for 2010
- Improved confidence in demand growth from China and other emerging
markets.
- Signs of stabilisation and even growth in the US and Europe. Russian outlook
better for 2010.
- Prices expected to be significantly ahead of 2009 averages. Production for
our principal products is expected to be at or near capacity.
- Costs to rise: labour costs are set to rise broadly in line with local
inflation; raw material and other input costs are increasing more significantly
as the industry and global economy recover; whilst there is also the potential
negative impact of a tenge appreciation.
- Capex projects 'in progress' and 'under review' total US$5.8 billion; 2010
capital expenditure projected to be US$1.5 billion.
- The prospective acquisition, announced in February 2010, of Chambishi, a
copper and cobalt refiner/smelter in Zambia, for US$300 million.
"In 2009 the Group's advantages, particularly its proximity to China, low cost
base and business diversification, underpinned a robust performance in the face
a marked industry downturn. Swift measures taken by the management allowed
us to mitigate the weaker demand and lower prices and deliver an improved
performance in the second-half of 2009. During the year we were pleased to be
able to use our strong balance sheet to grow our commodity base by acquisition.
Our entry into copper and cobalt, with the purchase of CAMEC, opens up an
exciting new opportunity and implements our strategy of diversification. We are
increasingly confident that strong growth in emerging markets and a recovery
coming in the rest of the world will sustain growth in the demand for our products
in 2010".
Felix J Vulis, Chief Executive Officer
Ends
The press release, including the production report for Y2009, released at the
KASE website at:
-
http://www.kase.kz/files/emitters/GB_ENRC/gbenrc_reliz_240310.pdf - in
Russian;
-
http://www.kase.kz/files/emitters/GB_ENRC/gbenrc_reliz_240310_eng.pdf -
in English.
[2010-04-09]