Search Copying and distributing are prohibited without permission of the publisher
Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

  • By submitting this article to a friend we reserve the right to contact them regarding AMM subscriptions. Please ensure you have their consent before giving us their details.

ENRC braces for ‘significant’ write-downs on four assets

Keywords: Tags  ENRC, write-downs, copper, cobaly, aluminum, Chambishi, Boss Mining, Aluminium of Kazakhstan aluminum

LONDON — Eurasian Natural Resources Corp. (ENRC) may be affected by "significant" write-downs related to four of its assets.

The miner said it expects to recognize non-cash impairment charges primarily for copper and cobalt producers Boss Mining and Chambishi in the Democratic Republic of Congo, Northam Platinum Ltd. in South Africa and Aluminium of Kazakhstan.

"The market will be notified of the final amounts, which are likely to be significant," ahead of the group’s preliminary results for the year ended Dec. 31, which will be released March 20, the company said.

Fellow miner Kazakhmys Plc said Feb. 28 that the value of its 26-percent stake in ENRC had fallen by 53 percent to just over $1.5 billion. Kazakhmys said it is reviewing the carrying value of its holding but will not be able to determine any impairments until ENRC releases its full-year results.

ENRC also said its effective tax rate for 2012 will be around 45 percent, up from a previous guidance of 37 to 39 percent. The change is due to the write-off of a deferred tax asset by Aluminium of Kazakhstan, changes in commodity prices and market conditions, and higher-than-expected spending on asset development.

A version of this article was first published by AMM sister publication Metal Bulletin.

Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Latest Pricing Trends