Eurasian Natural Resources Corporation PLC
May 2012 Interim Management Statement and
Production Report for the First Quarter ended 31 March 2012
London - Eurasian Natural Resources Corporation PLC ('ENRC' or, together with its subsidiaries, the 'Group') today announces its May 2012 Interim Management Statement and its Production Report for the First Quarter ended 31 March 2012.
Highlights for the Three Months ended 31 March 2012
o Production restored to full available capacity across most of our principal commodities. Copper production increased by 36.8% compared to Q1 2011;
o Revenue decreased significantly when compared to very strong Q1 2011, principally driven by decline in prices for our main commodities.
o Cost inflation in line with guidance;
o Solid financial position: gross available funds of US$0.9 billion; total debt of US$3.3 billion;
o Organic growth programme is on track.
Recent Developments and Outlook for the Full Year 2012
o Acquisition of Shubarkol completed, strengthening our portfolio of Tier-1 assets and providing synergies to our core businesses in Kazakhstan;
o Acquisition of FQM's assets and settlement of the residual claims in the DRC completed, consolidating our growth platform in the region;
o Production expected to remain at or close to full available capacity for the full year 2012;
o Annualised unit cost of sales growth in our products expected at approximately 20%, as previously guided;
o Planned capital expenditure for the year expected to be approximately US$2.7 billion.
"We have maintained production at full available capacity across most of our principal commodities, with recoveries in ferroalloys and iron ore production, as well as achieving a notable increase in copper production. However, depressed pricing and the temporary decrease in alumina production have impacted revenue for the quarter. We remain focused on controlling costs and executing our extensive growth programme, despite the climate of global economic uncertainty and near-term market volatility."
Felix J Vulis, Chief Executive Officer
