MINING group ENRC is this week poised to reveal the size of its writedowns on its assets as part of the FTSE 100 firm’s full-year results.
The firm said last month that it planned to make “significant” writedowns on its assets in Kazakhstan, Congo and Zambia, adding that its tax rate will be 45 per cent, above the 37 to 39 per cent range it had previously guided.
Kazakhmys, the London-listed miner that owns 26 per cent of ENRC, said in February that it could be forced to take a hit of up to £1bn on the value of its holding as a result of the writedowns.
ENRC is due on Wednesday to update the market on its performance, the latest in a long line of miners to quantify the damage done by weak commodity prices.
Analysts at RBC expect the group to post a 43.5 per cent drop in earnings before interest, taxes, depreciation, and amortisation to £1.95bn, though they predict a bounce in subsequent years as the price of iron ore recovers.
ENRC last week faced a fresh corporate governance headache after a report by law firm Dechert highlighted a lack of related party disclosures in at least $100m-worth of payments.
The Dechert report has been passed to the Serious Fraud Office.
Shares in ENRC have risen almost 15 per cent since the start of the year.