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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (41831)	8/19/2009 10:10:20 PM
From: LoneClone	Read Replies (1) \| Respond to of 194406

ENRC sees near-term demand, prices picking up miningweekly.com By: Chanel Pringle 19th August 2009 JOHANNESBURG (miningweekly.com) – LSE-listed Eurasian Natural Resources Corporation’s (ENRC’s) 2010 production volumes would likely reach the levels it had achieved in 2008, CEO Dr Johannes Sittard reported on Wednesday. ENRC, the world’s top ferrochrome producer, had cut output earlier in the year to adjust to lower levels of demand, but said on Wednesday that the near-term demand and price outlooks for its core commodities had improved in recent months. ENRC’s net profit for the six months ended June 30, 2009, fell by 58,8% to $553-million, compared with $1,3-billion the year before, while revenues declined by 51% to $1,7-billion, compared with $3,4-billion recorded in the first half of the 2008 financial year. Lower production volumes, particularly from the group’s ferroalloys and iron-ore divisions, had impacted on the group’s performance in the six months. However, these two divisions had, in recent months, seen a steady increase in production capacity utilisation and sales, ahead of the group’s initial expectations, he noted. Ferroalloys production in the second quarter of the year had increased by 31% compared with the first quarter of the year, while the Kazchrome business’ capacity had moved up to 84%. Primary iron-ore concentrate production was up 35% quarter-on-quarter, with capacity utilisation increasing to 91% by June. “Our first-half financial and operational performance, in the face of considerable market pressures, reflected a satisfactory outcome. The group was positioned effectively to capture the upturn, and particularly the opportunity offered by China, and this has allowed a rapid recovery in production levels,” commented Sittard. The group expected the recovery to be sustained in the second half of the year, while Sittard added that government stimulus packages across the world and the gradual easing of credit availability would likely fuel a sustained general economic recovery in 2010. ENRC believed that China would be key to rebuilding sustained demand for industrial metals, with significant potential for growth in demand for ferroalloys, iron-ore, alumina and aluminium from China and Russia. The group was expecting to benefit from its strategic position close to these two economies. Meanwhile, ENRC had spent $596-million in capital expenditure (capex) in the first half of the year, up from the $500-million spent the year before. Project capex for the full year was expected to amount to about $900-million, while a further $500-million would be spent on repairs and smaller projects, stated ENRC. BOARD CHANGES Sittard, meanwhile, would step down as CEO on Thursday and take up the role of chairperson, as Sir David Cooksey steps down to become chairperson of UK Financial Investments Limited. The group’s COO Felix Vulis would take over as CEO.