/KASE, May 22, 09/ - EURASIAN NATURAL RESOURCES CORPORATION
PLC (London), common shares of which are listed on Kazakhstan Stock
Exchange (KASE), provided KASE with a press release dated May 13, 2009:
Quotation beginning
London - Eurasian Natural Resources Corporation PLC ("ENRC" or together with
its subsidiaries - "the Group"), a holding company of a leading diversified
mining group, mainly located in Kazakhstan, presents its report on preliminary
results of May 2009 and production report for Q1 (end of March 31, 2009).
Highlights of Q1 before March 31, 2009
- Significant pressure on prices.
- Sales and production in Q1 exceeded expectations on contraction of
production in ferroalloys (except for Serov and Tuoli) and iron ore
accordingly by 30 % and 35 % in the corresponding period.
- The group reduced expenses for a production unit, partially thanks to the
tenge devaluation in February.
- The Group retained strong accounting balance. Turnover capital was
controlled properly.
- In February the group acquired 25 % of large Kazakhstan-based coal
producer Shubarkol.
Prospects of 2009
- Prospects are still unclear, and it is prematurely to link currently observed
demand on the side of China with recovery of the economy.
- Demand exceeded expectations in Q2 2009. We continue to follow
production levels.
- We as well expect prices to be pressured in the second half of 2009,
specifically due to increase of sales of ferroalloys and iron ore at spot
prices.
- Continuation of control of production costs and recent devaluation may help
remain competitive in terms of expenses. However, the already reached
expenses reduction is likely to limit possibilities for further cut.
"It is pointed out in our preliminary results for 2008, and so far in 2009
demand exceeded expectations. Taking into account current economical situation,
we still aim to strictly control costs, and remain competitive. We are very
careful looking at general prospects, and believe, in short-term it is possible
to retain current increased production levels, and we will constantly revise
them. Thanks to our strong accounting balance the group continues to implement
projects to boost productivity and investment to change equipment, taking
advantage of possibilities on individual acquisitions. We believe profitable
location will ensure future growth at the expense of advantages in production
costs and strategic location."
Dr. Johannes Cittard, CEO
Contact:
ENRC: Investor Relations
Munissa Shodieva +44 (0) 20 7389 1879
James S. Johnson+44 (0) 20 7389 1862
Marianna Adams+44 (0) 20 7389 1886
ENRC: Corporate Relations
Yuliya Kalcheva +44 (0) 20 7389 1861
M: Corporate Relations
Hugh Morrison+44 (0) 20 7153 1534
Edvard Orlebar+44 (0) 20 7153 1523
Elli Willyamson +44 (0) 20 7153 1539
Quotation end
The press release, including production report for Q1 2009, is available at the
KASE website at:
http://www.kase.kz/files/emitters/GB_ENRC/gbenrc_reliz_130509.pdf
[2009-05-22]