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).

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

Recommended

The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
7 sin stocks to buy yielding up to 8%!
Share tips

7 sin stocks to buy yielding up to 8%!

Sin stocks don’t have the best reputation, but when it comes to investment returns, they’re certainly worth a closer look.
2 Dec 2022
Share tips of the week – 2 December
Share tips

Share tips of the week – 2 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Dec 2022
3 emerging-market stocks to watch
Share tips

3 emerging-market stocks to watch

The top emerging-market stocks to keep an eye on, according to Union Bancaire Privée’s Eli Koen.
1 Dec 2022

Most Popular

Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022
Fan heater vs oil heater – which is cheaper?
Personal finance

Fan heater vs oil heater – which is cheaper?

Sales of portable heaters have soared, as households look to cut their energy costs. But which is better: a fan heater or an oil heater? We put them t…
21 Nov 2022
The pros and cons of smart meters – should you switch?
Personal finance

The pros and cons of smart meters – should you switch?

A smart meter can help you keep tabs on your energy usage, but is it better than a regular meter? We take a look at smart meters vs regular meters.
2 Dec 2022