REG - Ferrexpo plc - Production Report and Trading Update for 4Q 2022

FerrexpoAnnouncement

11/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230111:nRSK3145Ma&default-theme=true

RNS Number : 3145M  Ferrexpo PLC  11 January 2023

 

 

 

11 January 2023
 
 

Ferrexpo plc

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

Production Report and Trading Update for 4Q 2022

Ferrexpo plc (LSE: FXPO), a producer and exporter of high grade iron ore
pellets to the global steel industry, with operations in central Ukraine,
hereby provides the following summary of its production for the fourth quarter
of 2022 ("4Q 2022") and a trading update, in line with previous year-end
reporting:

·      The safety of Ferrexpo's workforce continues to be the Group's
first priority. The Group's operations have completed a second successive
fatality-free year in 2022, and overall safety performance remains in line
with recent years. The war in Ukraine continues to impact the Group's
workforce and communities across the country, and the Group continues to
support Ukraine at this difficult time.

·      Total iron ore pellet production for 4Q 2022 of 0.4 million
tonnes (4Q 2021: 3.1 million tonnes). This reduction is primarily due to the
loss of electrical power for the majority of the quarter, which was partially
restored in late December, in addition to existing constraints relating to
Russia's invasion. As of the date of this release, the Group continues to
produce iron ore pellets using one pelletiser line (out of a total of four).

·      Operations continue to focus on the production of high grade
forms of iron ore, with 100% of output grading 65% Fe or above in 4Q 2022.
Given recent operational disruptions, the Group elected to reduce output of
higher grade Direct Reduction ("DR") Pellets (67% Fe) during the period. DR
pellets represented 6% of total pellet production in 2022 (2021: 4%), and the
Group expects to continue to increase its focus on this particular product in
the coming year.

·      Full year pellet production of 6.1 million tonnes in 2022, down
46% year on year, reflecting operational and logistical constraints throughout
2022 due to the war in Ukraine (2021: 11.2 million tonnes produced).

·      Despite interruptions to the Group's production during 4Q 2022,
shipments to customers continued as planned at approximately the same run rate
as seen in the previous quarter of 2022.

·      Total full year sales of 6.2 million tonnes in 2022, representing
a 46% decrease year on year due to the ongoing war in Ukraine, principally
relating to the closure of Ukraine's access to the Black Sea, Russian attacks
on Ukraine's state-owned electricity network and logistics constraints for
users of Ukraine's railway network, in addition to other factors.

·      Full year production of commercial concentrate of 124 kilotonnes,
representing 2% of total iron ore output in 2022 (2021: 2%), providing an
additional product in the Group's marketing portfolio.

·      Resignation of Non-executive Director Kostyantin Zhevago in
December 2022.

·      Group net cash position, subject to minor final year-end
adjustments, of approximately US$105 million as of 31 December 2022 (31
December 2021: US$117 million), with minimal lease obligations and no debt.

 

Jim North, Chief Executive Officer of Ferrexpo commented:

"The past year has been an exceptionally difficult year for anyone connected
to Ukraine. After more than 320 days of conflict, however, Ukraine continues
to successfully defend itself. At Ferrexpo, our operating and marketing teams
have remained resilient throughout the war, and we remain committed to
supporting the people of Ukraine through our continued operations and
investments. Our full year pellet production of 6.1 million tonnes reflects
both the determination of our workforce, and the strong and supportive
relationships that we have with our stakeholders, such as our global customer
network and local government. We hope that the coming year will bring peace,
and we look forward to being a part of the process to deliver a new future for
our people, their families and communities across Ukraine."

 

 Thousand tonnes, unless stated otherwise  Product Grade Fe  4Q 2022  QoQ (vs. 3Q 2022  YoY (vs. 4Q 2021  12M 2022  YoY (vs. 12M 2021
 Total commercial production                                 457      (49%)             (85%)             6,177     (46%)

(pellets and commercial concentrate)

 Total pellet production                                     417      (50%)             (86%)             6,053     (46%)
 Pellet production comprised of:
 o  Direct Reduction Pellets               67%               -        (100%)            (100%)            353       (18%)
 o  Ferrexpo Premium Pellets               65%               417      (28%)             (86%)             5,700     (47%)
 o  Ferrexpo Basic Pellets                 62%               -        -                 -                 -         -

 Commercial concentrate production         67%               40       (38%)             +3%               124       (47%)

 

 

For further information, please contact:

 Ferrexpo:
 Rob Simmons      r.simmons@ferrexpo.ch (mailto:r.simmons@ferrexpo.ch)        +44 207 389 8305
 Tavistock:       ferrexpo@tavistock.co.uk (mailto:ferrexpo@tavistock.co.uk)  +44 207 920 3150
 Jos Simson                                                                   +44 7785 974 264

 Emily Moss

 Gareth Tredway

 
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 50 years, and in 2022 the Group produced 6.1 million tonnes of iron ore pellets, despite the war in Ukraine. Historically, Ferrexpo has been the world's third largest exporter of pellets to the global steel industry, recently having a market share of approximately 9% in 2021. 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)
.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLBMMBTMTMBTRJ