Special Dividend

RNS Number : 6287Y

Ferrexpo PLC

07 December 2017

 

7 December 2017

FERREXPO plc

("Ferrexpo" or the "Group")

Special dividend

Ferrexpo is pleased to announce a special dividend of 3.3 US cents per share. This follows the payment of an interim dividend for the first six months of 2017 of 3.3 US cents per share which was paid on 8 September 2017 (1H 2016: nil).

Ferrexpo's dividend policy is to pay a base level of sustainable dividends through the commodities cycle of approximately US$40 million per annum (or 3.3 US cents per half year). In addition, the Board assesses the merits of additional returns to shareholders via special dividends, to be paid from cash flows in excess of the Group's needs when taking into account debt repayments and development capital expenditure. If appropriate, the Group will target special dividends of approximately US$40 million per financial year (or a total of 6.6 US cents per share) to be paid at an appropriate time in its reporting cycle.

The Board's strategy is to maintain a balance between sustainable and attractive shareholder returns, investment in growth opportunities and balance sheet strength.

The Company has continued to trade strongly since it announced its half-year results on 3 August, and its cash flows have further reduced net debt and funded capital expenditure. Together with the strong demand outlook for pellets in 2018, this has given the Board confidence to declare this dividend.

The special dividend will be paid on 15 January 2018 to shareholders on the register at the close of business on 15 December 2017.  The ex-dividend date will be 14 December 2017. The dividend will be paid in UK Pounds Sterling, with an election to receive in US Dollars.

For further information contact:

Ferrexpo:
Ingrid McMahon	[phone]
Maitland:
James Isola	[phone]

Notes to Editors:

Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine. It has been mining, processing and selling high quality iron ore pellets to the global steel industry for 40 years. Ferrexpo's resource base is one of the largest iron ore deposits in the world. The Group is currently the 3rd largest exporter of pellets to the global steel industry and the largest exporter of pellets from the Former Soviet Union. In 2016, it produced 11.2 million tonnes of pellets reflecting a 2% increase in production of the Group's highest quality pellets to a record 10.5 million tonnes. Ferrexpo has a diversified customer base supplying steel mills in Austria, Slovakia, the Czech Republic, Germany and other European states, as well as in China, India, Japan, Taiwan and South Korea. Ferrexpo 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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