ENRC Rises in London on Higher Than Expected Ferroalloy Output

Eurasian Natural Resources Corp., a Kazakh metals producer, rose to the highest level in more than four months in London trading after announcing that ferroalloy and iron ore production rose in the fourth quarter.

ENRC shares advanced as much as 5.9 percent to 364.6 pence, the highest since September. Production of saleable ferroalloys, used in steelmaking, increased 8.9 percent to 392,000 metric tons, ENRC said today in a statement. Iron-ore extraction rose 4.4 percent to 11 million tons.

ENRC “achieved significant production increase on 2011 full year level,” Chief Executive Officer Felix Vulis said in the statement. “We anticipate delivering a strong operational performance across the group in 2013.”

The ferroalloy output beat estimates by 3 percent, Liberum Capital Ltd. said in a note. “Overall the divisions that are currently the main earnings contributors all came in line and we would expect small upgrades to 2012 consensus.”

ENRC, which produces ferroalloys, iron ore, aluminum and power in Kazakhstan, owns copper and cobalt assets in Zambia and the Democratic Republic of Congo, where it acquired First Quantum Minerals Ltd.’s stakes in three mines last year for $1.25 billion.

ENRC mined 1.17 million tons of bauxite, a raw material for alumina used to produce aluminum, down 18 percent from last year. Aluminum production declined 1.6 percent percent to 62,000 tons in the quarter, while it was unchanged at 249,000 tons for the year.

Fourth-quarter output of saleable copper fell 4 percent to 7,756 tons because of power supply disruptions, ENRC said. It produced 35,216 tons of copper in 2012, up 19 percent from 2011.

ENRC, which in April bought the 75 percent of Kazakh coal producer Shubarkol Komir JSC it doesn’t own for $650 million, produced 53,000 tons of special coke, it said.

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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