Ferrexpo Lauds Record April Output; Chair To Step Down

(Alliance News) - Ferrexpo PLC on Thursday said it is benefiting from lower energy costs, with production and logistics now cheaper and the iron ore miner also reported record monthly output in April.

A busy update from the FTSE 250-listed firm also noted its chair will soon depart, and a "significant proportion" of shareholders at its annual general meeting rejected several motions.

Over the first four months of the year, pellet production from own ore was 8.8% higher annually to 3.8 million tonnes, compared to 3.5 million tonnes. It was boosted by record pellet production 1.1 million tonnes in April.

Year to date sales have also surged 28% annually to 4.1 million tonnes from 3.2 million tonnes.

"Ferrexpo continues to benefit from lower energy prices which have reduced production and logistics costs," the company said.

The company will soon say wave goodbye to Chair Steve Lucas, who will not stand for re-election at Ferrexpo's next annual general meeting. The company said he is stepping down "for personal reasons and other business commitments".

The updates were issued in the wake of the FTSE 250 firm's most recent AGM, which took place earlier on Thursday. Also motions were passed, though several were rejected by more than 20% of shareholders.

Motions to reappoint soon-to-depart Lucas and Non-executive Director Vitalii Lisovenko were rejected by 28% of voters. Ferrexpo added that 32% rejected a motion to reappoint Chief Executive Officer Kostyantin Zhevago.

Also, 24% rejected its remuneration report.

"The board of Ferrexpo notes that there were a significant proportion (more than 20%) of votes cast against resolutions to approve the remuneration report and to re-elect three of our directors. The board will consult and engage with independent shareholders as soon as possible to better understand the reasons behind these votes and will publish an update of shareholder engagement within six months of today's AGM," Ferrexpo said.

Ferrexpo also noted that 68% of independent votes rejected the motion to re-elect Lisovenko.

"As the re-appointment of Vitalii Lisovenko, as one of the independent non-executive directors, did not receive the requisite votes required for re-appointment by a majority of the independent shareholders, the company may put the matter to a second vote of all shareholders to be held between 90 and 120 days after the AGM," Ferrexpo added.

Shares in the company were 3.7% higher at 169.55 pence each in London on Thursday afternoon.

By Eric Cunha; ericcunha@alliancenews.com

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