Ferrexpo announces special interim dividend after 'strong' 2020 performance

(Sharecast News) - Iron ore pellet producer Ferrexpo announced on Tuesday a special interim dividend of 13.2 US cents.
This reflects "the strong operational and financial performance of the group in 2020, and strong balance sheet," it said.

The special dividend will be paid on 28 January to shareholders on the register at the close of business on 15 January.

To date, total dividends declared in respect of 2020 amount to 33 cents. Ferrexpo said it will consider the final dividend for the 2020 financial year ahead of its full-year results on 17 March.

At 0930 GMT, the shares were up 3.3% at 306.05p.

Broker Peel Hunt said: "With the present high iron ore price generating strong cash flows for the group, Ferrexpo has seen its net debt levels reduce quickly. We suspect that this may mean that there is a further final dividend still to come for 2020, and it highlights the fact that the elevated payouts are the default mechanism to avoid cash building on the balance sheet."