REG - Ferrexpo plc - Production Report for 4Q 2024

FerrexpoAnnouncement

09/01/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250109:nRSI6625Sa&default-theme=true

RNS Number : 6625S  Ferrexpo PLC  09 January 2025

9 January 2025

 

Ferrexpo plc

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

 

Production Report for 4Q 2024

 

Ferrexpo plc (LSE: FXPO), a producer and exporter of premium iron ore pellets,
is pleased to report production results for the fourth quarter and full year
to the end of December 2024 ("the quarter" or "4Q" or "4Q 2024" and "FY2024").

Highlights

·   Ferrexpo remains committed to the safety and wellbeing of its workforce
and the Group continues to take extensive measures to protect employees, their
families and local communities.

·   At the end of November 2024, the Group reported a rolling 12-month
LTIFR of 0.62, increasing above the historic five-year trailing average of
0.52. Zero fatalities have been reported for over four years.

·   The Group has successfully operated two pelletising lines (out of four)
during the quarter, despite disruptions to the energy grid, with a focus on
higher quality pellets and high grade concentrates.

·   Total production for the quarter was 1.8 million tonnes, comprising 1.5
million tonnes of pellets and 0.3 million tonnes of 67% Fe concentrate. Total
production for the year to the end of December 2024 was 6.9 million tonnes, a
66% increase compared to the comparable period last year.

·   Production of Ferrexpo DR pellets (FDP) continued during the quarter,
with a record total of 0.5 million tonnes produced for the year.

·   As at 31 December 2024, the Group net cash position was approximately
US$99 million (31 December 2023: US$108 million), with minimal lease
obligations, subject to potential final year-end adjustments, and no debt.

·   Re-entry in the FTSE 250 index at the end of December.

Summary production statistics

 (tonnes, unless otherwise stated)  Fe Grade  4Q 2024    3Q 2024    Change  FY 2024    FY 2023    Change
 Total commercial production                  1,769,073  1,393,811  +27%    6,889,879  4,152,028  +66%
 Total pellet production                      1,503,373  1,269,727  +18%    6,070,541  3,845,325  +58%
 DR pellets (FDP)                   67%       163,552    163,523    0%      489,720    0          -
 Ferrexpo premium pellets           65%       1,204,380  944,279    +28%    4,984,990  3,795,414  +31%
 Other pellets                      65%       135,441    161,925    -16%    595,831    49,911     +1,094%
 Commercial concentrate             67%       265,700    124,084    +114%   819,338    306,703    +167%

Commenting on the Group's performance, Lucio Genovese, Interim Executive
Chair, said:

"In the challenging circumstances, it is pleasing to report a strong increase
in production for 2024 - our best annual production performance since the
start of the full-scale invasion in 2022. The entire Ferrexpo workforce has
worked tirelessly to achieve this outcome, and I am grateful for their
teamwork.

The higher production reflects our ability to access Ukrainian Black Sea ports
again and resume exports to customers in MENA and Asia. In total, 37 ocean
going vessels were loaded in 2024, comprising 32 vessels from Ukraine and five
from other ports, compared to just 19 (from Romania) in 2023. The higher
production also reflects the agility that we have built into the business,
producing a wider variety of products.

One of the highlights for 2024 is the new annual record for the production of
DR pellets. These higher quality pellets generate a higher revenue for the
business, which is particularly relevant as we continue to experience high
input costs. In the fourth quarter, it is also interesting to note that we
increased our production of high grade pellets and concentrate, which
contributed to lowering our fixed cost base as production levels increased.
This is a further example of flexibility, adjusting our production and sales
strategies to match evolving market dynamics.

The Group's ability to produce a variety of products and sell to a broader
customer base have helped during the current environment. However, the
continued effects of lower iron ore prices and higher input costs, put
pressure on our margins during the fourth quarter. Due to further attacks on
Ukraine's energy grid, we are still required to import at higher tariffs
electricity from the EU.

As we mark the end of the 2024, it is important that we keep in mind the 700
of our employees who are serving in the Armed Forces of Ukraine. We pay our
respects to the ten colleagues that were killed during 2024, bringing the
total to 45 since the full-scale invasion. We mourn their passing and honour
their brave strength."

 

For further information, please contact:

 Ferrexpo:
 Nick Bias        n.bias@ferrexpo.ch (mailto:n.bias@ferrexpo.com)             +44 (0)7733 177 831

 Tavistock:
 Jos Simson       ferrexpo@tavistock.co.uk (mailto:ferrexpo@tavistock.co.uk)  +44 (0)7899 870 450

 Gareth Tredway                                                               +44 (0)7785 974 264

About Ferrexpo:

About Ferrexpo: Ferrexpo is a Swiss headquartered iron ore company with assets
in Ukraine and a listing in the equity shares commercial companies category on
the London Stock Exchange (ticker FXPO) and a constituent of the FTSE 250 and
FTSE4Good indices. 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 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.
Before Russia's full-scale invasion of Ukraine in February 2022, the Group was
the world's third largest exporter of pellets. The Group has a global customer
base comprising of premium steel mills around the world. For further
information, please visit www.ferrexpo.com (http://www.ferrexpo.com) .

Notes:

Please note that numbers may not add up due to rounding and all numbers
contained herein may be subject to adjustment. The Company will report
Financial Results for the year ended 31 December 2024 on 12 March 2025.

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  UPDUWAURVVUARUR