Ferrexpo PLC Trading update and 4Q 2016 pellet production (6300T)
January 09 2017 - 2:00AM
UK Regulatory
TIDMFXPO
RNS Number : 6300T
Ferrexpo PLC
09 January 2017
9 January 2017
Ferrexpo plc
("Ferrexpo", the "Group" or the "Company")
Trading update and 4Q 2016 pellet production
2016 trading summary:
-- Record sales volumes of approximately 11.7 MT compared to
11.3 MT in 2015 reflecting strong global demand for the Group's
pellets.
-- Total 2016 pellet production 11.2 MT compared to 11.7 MT in 2015.
-- Lower pellet production in 2016 reflects:
- An increase of 1.0 MT of higher performance FPP+1 pellets (2016 3.3 MT vs. 2.3 MT in 2015)
- Refurbishment of the travelling grate in the pelletiser
- A decrease in production from low margin third party concentrate
-- The Group's average pellet price in 2016 increased slightly
compared to 2015, reflecting a recovery in the 62% Fe iron ore
fines price during the year (average 2016 US$58.5 per tonne)
compared to 2015 (average US$55.5 per tonne) and a steadily
improving pellet premium following lows reached in 1Q 2016.
-- The full year average 2016 cash cost of production was
approximately US$29 per tonne compared to US$31.9 per tonne in
2015.
-- The Group's cash balance as of 31 December 2016 was circa
US$145M up US$110M compared to US$35M as of 31 December 2015.
-- US$196M of debt was retired during 2016.
Outlook:
In 2016, Ferrexpo successfully focused on reducing its debt
levels, and as such enters 2017 with a much improved capital
structure. In 2017 the Group expects to benefit from higher pellet
premiums while production volumes will continue to reflect
better-quality output with total production increasing modestly
compared to 2016. Costs remain subject to commodity prices, the
Hryvnia exchange rate and inflation levels in Ukraine.
4Q 2016 pellet production:
000' tonnes Q4 Q3 % 2016 2015 %
2016 2016
========= ========= ========== ==========
Change Change
========= ========= ======= ========== ========== =======
Pellet production
from own ore 2,767.11 2,604.20 6.3 11,071.40 11,258.45 -1.7
- 62% Fe FBP 153.50 148.20 3.6 665.60 1,289.34 -48.4
- 65% Fe FPP (incl.
FPP+) 2,613.61 2,456.00 6.4 10,405.80 9,969.11 4.4
Production from third
party materials 105.99 0.00 - 129.20 403.16 -68.0
- 62% Fe FBP 0.00 0.00 - 0.00 5.96 -
- 65% Fe FPP (incl.
FPP+) 105.99 0.00 - 129.20 397.19 -67.5
Total Pellets Produced 2,873.10 2,604.20 10.3 11,200.60 11,661.60 -4.0
------------------------ --------- --------- ------- ---------- ---------- -------
- 62% Fe FBP 153.50 148.20 3.6 665.60 1,295.30 -48.6
- 65% Fe FPP (incl.
FPP+) 2,719.60 2,456.00 10.7 10,535.00 10,366.30 1.6
of which % of FPP
(incl. FPP+) 94.7% 94.3% 0.4 94.1% 88.9% 5.2
------------------------ --------- --------- ------- ---------- ---------- -------
Note: Ferrexpo Basic Pellets (FBP), Ferrexpo Premium Pellets
(FPP) and Ferrexpo Premium Pellets plus (FPP+). In 2016 the Group
also produced 123kt of 67% Fe Ferrexpo Pellet Feed (FPF) compared
to 40kt of 67% Fe FPF in 2015.
(1) Ferrexpo premium pellets plus (FPP+) contain 65% Fe with
enhanced basicity and low temperature disintegration properties
compared to FPP pellets.
For further information contact:
Ferrexpo:
Investor Relations and Corporate Communications
Ingrid McMahon +44 207 389 8304
Maitland PR:
James Isola +44 207 379 5151
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 over 35 years.
Ferrexpo's resource base is one of the largest iron ore deposits in
the world. The Group is currently the 3(rd) 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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