Financial Highlights for 2012;
1. Financial performance impacted by poor pricing environment.
2. Revenue declined by 18% to USD 6,320 million.
3. Cost of sales up 6% to USD 3,723 million, as a result of higher depreciation.
4. Underlying EBITDA fell by 45% to USD 1,887 million; Underlying EBITDA margin of 29.9%.
5. Non cash charges for impairment and an onerous contract provision totalling approximately USD 1.5 billion, primarily related to Aluminium of Kazakhstan, the Group’s contract with RUSAL and Boss Mining.
5. Basic loss per share of USD 62 cents (2011 earnings per share: US 153 cents); earnings per share (adjusted) of USD 41 cents (2011: US 155 cents).
6. No final dividend proposed; full year payout ratio of 16% based on interim dividend of US 6.5 cents.
7. Gross available funds of USD 743 million borrowings of USD 5,833 million. USD 3,000 million of additional facilities obtained since the start of 2012.

Business Highlights for 2012;
1. Solid cash flow generation from assets in Kazakhstan; record production volumes for saleable ferroalloys, coal, electricity and copper.

2. Cost control and productivity enhancing initiatives kept unit costs for key products well below initial guidance in the Ferroalloys and Iron Ore Divisions.

3. Capital expenditure cash flows of USD 2,345 million; progressed development of the New Aktobe Ferroalloys Plant copper oxide expansion, Frontier, Chambishi Metals PLC and the expansion of logistics capacity.

4. Consolidation of African copper assets giving ENRC full control to deliver on its strategy while building stronger corporate governance: Frontier and Roan Tailings Reclamation Project processing plants acquired from First Quantum Minerals award of the Frontier mining licence by the Government of the Democratic Republic of the Congo and acquisition of the remaining 49.5% of Camrose.

5. Acquisition of the outstanding shares in Shubarkol Komir JSC, a high quality, producing coal asset in Kazakhstan.

Outlook for 2013;
1. Capital expenditure cash flows of USD 1,747 million planned for 2013; emphasis on three of the Group’s five key growth projects, namely the New Aktobe Ferroalloys Plant, the Frontier Mine and RTR.

2. Production expected to be at full available capacity across all Divisions; copper volumes expected to double as Frontier is fully commissioned.

3. Ferrochrome market continues to be fundamentally over-supplied; pricing to be impacted by interplay of chrome exports and power issues in South Africa, and cost push pressures on all producers.

4. Easing of unit cost pressures expected and competitive advantage of low cost position in Kazakhstan to be maintained.

5. Effective tax rate for the year expected to be around 35% to 37% in 2013; social spend to decline to approximately USD 50 million.

“2012 was a challenging year for the Group, with deteriorating prices having materially impacted our earnings. However, management?s performance partially countered these declines by containing inflationary pressures and maximising output from our key Divisions in Kazakhstan. It is disappointing to have to announce write downs and provisions across a number of the Groups assets which have resulted in a basic loss per share for the year.