ENRC expects to incur in higher taxes and impairments for 2012
Eurasian Natural Resources Corporation has today announced that, taking into account the effect of one-off step-up gains and impairments, the effective-tax-rate (ETR) for the Group, for 2012, is expected to be around 45%.
Eurasian Natural Resources Corporation has today announced that, taking into account the effect of one-off step-up gains and impairments, the effective-tax-rate (ETR) for the Group, for 2012, is expected to be around 45%.
The rate is above the previously guided level of 37% to 39%, mainly due to the write-off of the deferred tax asset by Aluminium of Kazakhstan ('AoK'), higher than expected expenditure on asset development and resulting unrecognised tax losses and, because of the adverse changes in commodity prices and market conditions, to which the ETR remains sensitive.
The Group has also announced that it is currently in the process of completing its annual impairment review. The Group expects to recognise non-cash impairment charges primarily for its alumina business in Kazakhstan (AoK), Boss Mining and Chambishi and in respect of its interests in quoted equity shares (primarily Northam Platinum Limited).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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 end December 31st 2012, which will be released on the next March 20th.
As of 13:13 shares of ENRC are down by 3.87% to the 342.4p mark.
AB
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Review: The Bath Priory – a charming stay in an elegant city
MoneyWeek Travel Matthew Partridge visits the Roman ruins and takes the waters at The Bath Priory hotel’s luxurious spa
By Dr Matthew Partridge Published
-
Will Labour change the rules on pension tax relief?
Speculation is mounting that tax hikes could be announced in Rachel Reeves’s first Budget. Will pension tax relief rules be reformed?
By Katie Williams Published