Eurasian Natural Q4 ferroalloys, iron ore production volumes down - Update

(RTTNews) - Diversified natural resources group Eurasian Natural Resources Corp Plc (ENRC.L: News ) Wednesday said that production volumes for ferroalloys and iron ore divisions in the fourth-quarter were down, reflecting production cut backs in response to market conditions and reduced demand. Segment-wise, Ferroalloys division production was down 22% to 0.29 million thousand tonnes of ferroalloys, while iron ore division production declined 42% to 6.1 million tonnes of iron ore. Total manganese concentrate production decreased 33.3% to 0.14 million tonnes, while chrome ore extraction declined 28.2% to 0.85 million tonnes. Quarterly production volumes in alumina and aluminium divisions were up 2.3% and 181.8%, respectively. The group said that the division was unaffected by weaker market conditions, owing to the long-term contract and continued strength of the business. Primary aluminium production for the quarter was 31 thousand tonnes, while gallium production was 4,931 kilogrammes. In energy division, production volumes decreased for coal extracted and electricity generated by 2.5% and 12.4%, respectively, principally due to reduced internal demand. The resources company reported 23.6% decline in logistics division transportation with 12.8 million tonnes, largely reflecting the reduced production in the Ferroalloys and Iron Ore Divisions. Looking forward, the group said that it does not foresee immediate prospect for improvement in the first half of 2009. For ferroalloys division, the group expects production in the first half to be in line with previous guidance. Additionally, Eurasian natural now anticipates reduced production volumes and continued pricing pressures in 2009. Currently, the stock is up 34.25 pence, trading at 364.50 pence on the London Stock Exchange.