ENRC soars as output jumps in strong year

EURASIAN Natural Resources (ENRC) shares soared yesterday as investors cheered the miner’s latest output report.

In its ferroalloys division, ENRC produced 6.8 per cent more ferrochrome in the fourth quarter of 2012 than the previous year, and reported an 8.9 per cent jump in the amount of total saleable ferroalloys output in what chief executive Felix Vulis said was the highest annual production volume since its 2007 float.

Sales of iron ore production climbed 11.3 per cent in the fourth quarter.

Both divisions operated at full capacity over the three months to 31 December, ENRC said, leading to their increased production.

Its aluminium division reported falls in output, with bauxite extraction down 17.5 per cent and alumina production down 12.4 per cent against the previous year’s fourth quarter. The FTSE 100 miner cited technical issues – leading to the aluminium division operating below capacity – for the fall in production.

Chief executive Felix Vulis said that Kazakhstan-focused ENRC, which has been the subject of renewed speculation surrounding a takeover bid, would deliver “strong operational performance across the group in 2013”.

“The fourth quarter production report, while mixed, does show good growth in production of saleable ferroalloys and ferrochrome, and coupled with expectations of a strong 2013 should at the very least underpin the stock at current levels,” added Richard Curr at Prime Markets.

Shares closed up 9.12 per cent, making ENRC the second biggest riser on the FTSE 100.