Kazakhstan-based mining group Eurasian Natural Resources Corporation Plc. (ENRC) has said that for the full year 2010 it expects prices for its products to be well ahead of those that prevailed in 2009, with its confidence for the longer term remaining supported by its view of the sustainability of Chinese GDP growth, at around 7-9 percent, and by growth in other emerging markets. ENRC's overall outlook for stainless steel growth remains also good.
Underpinned by strong production and sales volumes, as well as by positive pricing environment for its main products, ferroalloys and iron ore, ENRC expects a significant increase in its financial performance in the first nine months of this year; however, it said that revenue growth in the second half would be affected by a slowing pace of increase in prices and volumes relative to the first half.
In an interim management statement, ENRC said it expects to spend approximately $1.3 billion, including sustaining capital expenditure of about $0.4 billion for the full year 2010. The decrease from previous guidance of $1.5 billion is due to the timing of certain projects.
Ferroalloys accounted for 47 percent of ENRC's H1 operating profit, while iron ore accounted for 36 percent.