REG - Ferrexpo plc - Production Report and Trading Update for 1Q 2022

FerrexpoAnnouncement

08/04/2022 07:00

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RNS Number : 7730H  Ferrexpo PLC  08 April 2022

 

8 April 2022
 
 

Ferrexpo plc

("Ferrexpo" or the "Company" or the "Group")

 

Production Report and Trading Update for 1Q 2022

Summary:

·      The safety of the Group's workforce remains the Group's highest
priority.

·      Total iron ore pellet production of 2.7 million tonnes in the
first quarter of 2022, representing a figure in line with the same period in
2021, and 11% below the previous quarter (4Q 2021) due to operational and
logistical constraints following Russia's invasion of Ukraine, which persist
as per the Group's previous press release updates in February 2022.

·      The Group's production continues to comprise entirely of high
grade forms of iron ore, which are those with an iron ore grade of 65% Fe or
above.

·      Sales in 1Q 2022 of 2.6 million tonnes, with the Group scaling
its production activities to meet accessible pellet demand. Logistics pathways
to Europe via rail and barge remain open to the Group, while activities at the
Black Sea port of Pivdennyi continue to be suspended.

·      Group net cash position of approximately US$159 million as at 31
March 2022, with stable available financing lines marginally impacting the
debt position. The Group has maintained an adequate balance of liquidity
between funds held both offshore and onshore, ensuring that payments for the
Group's workforce, operations and tax requirements are paid on time and in
full.

·      The situation in Ukraine remains complex. In accordance with the
Government of Ukraine's request for economic activities to continue, the Group
will continue to produce and transport its products as long as the capability
is in place and it remains safe to do so.

 

Jim North, Chief Executive Officer of Ferrexpo commented:

"The safety of our workforce remains our highest priority. Our operations and
local communities are outside the main conflict zones within Ukraine, enabling
us to continue our activities, including the delivery of iron ore pellets to
customers in Europe via rail and barge, which have historically represented
approximately 50% of sales. The port of Pivdennyi in southwest Ukraine, where
the Group's berth is located, remains closed, and we are reviewing alternative
methods of delivering our products to seaborne markets."

 

 

 Thousand tonnes, unless stated otherwise  Product Grade  1Q 2022  QoQ (vs. 4Q 2021  YoY (vs. 1Q 2021  3M 2022  YoY (vs. 3M 2021
 Total commercial production                              2,713    (13%)             (2%)              2,713    (2%)

(pellets & commercial concentrate)

 Total pellet production                                  2,713    (11%)             (0.1%)            2,713    (0.1%)
 Pellet production comprised of:
 o  Direct Reduction ("DR") Pellets        67% Fe         -        (100%)            (100%)            -        (100%)
 o  Ferrexpo Premium Pellets               65% Fe         2,713    (8%)              +2%               2,713    +2%
 o  Ferrexpo Basic Pellets                 62% Fe         -        -                 -                 -        -

 Commercial concentrate production         67% Fe         -        (100%)            (100%)            -        (100%)

 

 

For further information, please contact:

 Ferrexpo:
 Rob Simmons      r.simmons@ferrexpo.ch     +44 207 389 8305
 Tavistock:
 Jos Simson       ferrexpo@tavistock.co.uk  +44 207 920 3150

 Gareth Tredway                             +44 7785 974 264

 

 
About Ferrexpo:
Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine and a premium listing on the London Stock Exchange in the FTSE 250 index (ticker FXPO). The Group produces high grade iron ore pellets, which are a premium product for the global steel industry and enable reduced carbon emissions and increased productivity for steelmakers when the Group's iron ore pellets are converted into steel, compared to more commonly traded forms of iron ore. Ferrexpo's operations have been supplying the global steel industry for over 40 years and in 2021 the Group produced 11.2 million tonnes of iron ore pellets, placing Ferrexpo as the world's 3(rd) largest exporter of pellets to the global steel industry with a market share of approximately 9%. The Group has a global customer base comprising of premium steel mills around the world, which includes steel mills in Austria, Germany, Japan, South Korea, Taiwan, China, Slovakia, the Czech Republic, Turkey, Vietnam and America. For further information, please visit
www.ferrexpo.com (http://www.ferrexpo.com)
.

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