BULKS

Ferrexpo profits up on higher prices

Ukraine-focused Swiss iron ore mining company Ferrexpo has had a solid first half, with revenues rising on the back of higher iron ore fines prices.

 iron ore prices helped

iron ore prices helped

Ferrexpo (LSE: FXPO) said its revenue increased 28% year-on-year to US$787 million in the June quarter due to higher prices and an increase in sales. The company's underlying EBITDA was up 59% yoy to $372 million, and profit after tax was up 78% to $270 million.

The company's declared interim ordinary dividend was up 100% year-on-year to 6.6c.

Capital investment doubled to $114 million and its net debt reduced to $282 million.

"During the period we continued to benefit from strong pricing for our high-grade iron ore pellets, which helped deliver healthy cash flows," said Ferrexpo non-executive chairman Steve Lucas.

"This enabled us to allocate capital to further reduce debt, increase organic investment in our assets to drive medium term growth and declare a record interim dividend to shareholders."

Ferrexpo said the average realised FOB price increased 28% compared with the first half of last year, while the supply of pellets remained tight and there was a significant increase in the iron ore fines price.

There was a 5% yoy increase in pellet production, and the proportion of high-quality 65% iron ore pellet was 96% of total output. There was a 4% increase in sales volumes year on year.

C1 cash cost was $46 per tonne up $4.4 per tonne, reflecting modernisation of processing facilities and near-term organic growth opportunities to increase production by 1.5 million tonnes to 12Mt per year, Ferrexpo said.

There were no work-related fatalities in the first half, an improvement on the one fatality recorded for the same period last year.

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.