Q2 Production Report

RNS Number : 5963V

Ferrexpo PLC

14 July 2009

 



14 July 2009

Q2 Production Report

Ferrexpo plc ('Ferrexpo' or the 'Group') today issues its production report for the second quarter of 2009 ahead of its half-year results announcement on 5 August. 

Production Report for Q2 2009

Tonnes '000	Q2	Q1	Change		Q2	Change		YTD	YTD	Change
	2009	2009	%		2008	%		2009	2008	%
Production from own raw materials
Iron Ore	7,501.4	6,192.1	21.1		7,229.9	3.8		13,693.5	14,361.4	(4.7)
Concentrate	2,702.9	2,287.6	18.2		2,744.9	(1.5)		4,990.5	5,439.9	(8.3)
Pellets
62% Fe	1,214.4	905.9	34.1		1,304.7	(6.9)		2,120.3	2,584.1	(17.9)
65% Fe	1,026.0	977.4	5.0		967.0	6.1		2,003.4	1,920.3	4.3
Pellets Total	2,240.4	1,883.3	19.0		2,271.7	(1.4)		4,123.7	4,504.4	(8.5)
Production from purchased raw materials / tolling
Pellets
62% Fe	15.0	0.0	-		56.4	(73.4)		15.0	91.9	(83.7)
65% Fe	0.0	0.0	0.0		0.0	0.0		0.0	0.0	0.0
Pellets Total	15.0	0.0	-		56.4	(73.4)		15.0	91.9	(83.7)
Pellets Grand Total	2,255.4	1,883.3	19.8		2,328.1	(3.1)		4138.7	4596.3	(10.0)

Highlights

• Total pellet production rose by 21.1% compared to Q1 2009, and by 3.8% compared to the equivalent quarter last year

• Ferrexpo produced at full mining capacity throughout Q2 2009

• Higher grade 65% Fe pellet output increased by 4.3% in the first half of 2009 compared to the same period last year

• Sales volume in H1 2009 exceeded production during the period

• Production costs continue to trend downwards

• Continued high levels of spot sales to China exposed Ferrexpo to higher freight rates, reducing average achieved DAF/FOB prices and margins in Q2

• Gradual improvement in demand over the first half of the year in Traditional markets and Ukraine

• Ferrexpo traded profitably in the first half of 2009

Kostyantin Zhevago, Ferrexpo CEO, said:

'Ferrexpo continued to trade profitably in the second quarter of 2009. Freight rates from the Black Sea to China did put pressure on our average achieved DAF/FOB prices during the period, but this is likely to prove a temporary phenomenon. The outlook for iron ore is improving for the next quarter, particularly in our Traditional markets, which will reduce our reliance on the Asian seaborne spot market to some degree.'

Next Update

Ferrexpo will release its results for the six months ending 30 June 2009 on 5 August 2009. 

For further information, please contact:

Ferrexpo:                                         [phone]

Gavin Mackay

Pelham PR                                       [phone]

Charles Vivian

Notes to Editors:

Ferrexpo is a Swiss headquartered resources Group with assets in Ukraine, principally involved in the production and export of iron ore pellets, used in producing steel. Current output is over 9 million tonnes per annum, most of which is exported to steelmakers around the world. The Group is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information please visit www.ferrexpo.com.

 

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