Ferrexpo Share News (FXPO)

(Sharecast News) - Ukraine-based iron ore pellet producer Ferrexpo reported a jump in second-quarter production on Thursday.

The company said total iron ore pellet production in the quarter was 1,066 million tonnes, up 18% on the previous quarter. For the first half, meanwhile, production was 1,967m tonnes, up 57% on the second half of 2022.

Ferrexpo said that despite the ongoing conflict in Ukraine, and associated energy and logistics constraints, it successfully operated two pelletiser lines, the second which was recommissioned earlier in the year, ramping up to add additional flexibility and capacity.

Interim executive chair Lucio Genovese said: "It is pleasing to see that during the first half, a second pellet line returned to production, improving flexibility and enabling us to recover production.

"Logistics, however, remain constrained, and whilst we now have the capacity to produce more, currently we do not have sufficient availability at alternative Black Sea ports to export more.

"During the first six months we have continued to maintain a strong cash position, whilst funding our Capex commitments. We continue to assess alternative supply routes in the near-term, and indeed looking to a post-war future, we are developing plans to rebuild capacity so that we can return to full production levels and play our part in the recovery of Ukraine."