REG - Ferrexpo plc - Production Report for 3Q 2022

FerrexpoAnnouncement

06/10/2022 07:00

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RNS Number : 9519B  Ferrexpo PLC  06 October 2022

 

 

 

6 October 2022
 
 

Ferrexpo plc

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

 

Production Report for 3Q 2022

Ferrexpo plc (LSE: FXPO), an 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 in the third quarter of 2022 ("3Q 2022"):

·      The safety of Ferrexpo's workforce remains the Group's top
priority. The Group continues to operate fatality-free in 2022 and safety
performance in 3Q 2022 remained in line with the equivalent period in 2021 1 .
The Group continues to take measures to protect the health and safety of its
workforce and local communities in view of the ongoing war in Ukraine, and is
deeply saddened having now been notified of a total of eight of its workers
that have died whilst serving in the armed forces of Ukraine.

·      Total iron ore pellet production for 3Q 2022 of 0.8 million
tonnes, representing a year on year decrease of 68%, as a result of Russia's
invasion of Ukraine in 2022, and associated logistics constraints requiring
production to be curtailed. The Group is currently operating with one out of
four pelletiser lines in operation, reflecting accessible customer markets.

·      Production of higher grade direct reduction pellets increased by
35% to 263 kilotonnes in 3Q 2022, meaning that this product represented 31% of
total pellet production during the period (full year 2021: 4%). This result is
due to the Group's excess beneficiation capacity at the current time and
market factors incentivising production of this pellet type.

·      Sales of 1.0 million tonnes in 3Q 2022, representing a 65% year
on year decrease, which reflects the same logistics constraints as referenced
above, with sales tonnages exceeding production as operations draw down on
existing stockpiles in Ukraine.

·      Production of commercial concentrate increased by 45% year on
year to 65 kilotonnes in 3Q 2022, representing the Group's efforts to meet the
demands of accessible customer markets.

·      Appointment of Yaroslavna Blonska, who has more than 20 years'
experience within Ferrexpo's marketing team, as Acting Chief Marketing
Officer, replacing Brett Salt, who has resigned following a change in personal
circumstances.

Jim North, Chief Executive Officer of Ferrexpo commented:

"Having continued to operate throughout the war in Ukraine, which is a credit
to our operating and marketing teams, the third quarter of 2022 saw an
additional constraint on the Ukrainian railway network with the increase of
shipments of grain during the annual harvest season, further to the other
demands and constraints facing logistics providers in Ukraine at the present
time. We continue to operate in accordance with the volume of sales that we
can achieve at the present time, and expect to increase production once we
have further clarity on logistics corridors. The Group continues to adapt to
its present circumstances, as demonstrated by our increased focus on producing
direct reduction pellets, with this higher grade product typically receiving
an additional premium in the market."

 

 Thousand tonnes, unless stated otherwise  Product Grade Fe  3Q 2022  QoQ (vs. 2Q 2022  YoY (vs. 3Q 2021  9M 2022  YoY (vs. 9M 2021
 Total commercial production                                 905      (57%)             (66%)             5,720    (32%)

(pellets and commercial concentrate)

 Total pellet production                                     839      (60%)             (68%)             5,637    (31%)
 Pellet production comprised of:
 o  Direct Reduction Pellets               67%               263      +192%             +35%              353      +7%
 o  Ferrexpo Premium Pellets               65%               576      (71%)             (76%)             5,283    (33%)
 o  Ferrexpo Basic Pellets                 62%               -        -                 -                 -        -

 Commercial concentrate production         67%               65       +250%             +45%              84       (57%)

 

 

For further information, please contact:

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

 Emily Moss                                                                   +44 7785 974 264

 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 2021 the Group produced 11.2 million tonnes of iron ore pellets, placing Ferrexpo as the world's third 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)
.

 1  Reflecting the number of lost time incidents across Ferrexpo in 3Q 2022
when compared to 3Q 2021.

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