RE: BLACKROCK are onboard.31 Jan 2017 04:30
Ferrexpo is a Ukrainian iron-ore producer and a top three supplier of iron ore pellets to the steel industry globally. The company went through a cash crunch in 2015 when some of its funds got locked in a Ukrainian bank that went into administration. This coupled with the collapse in iron ore prices in late 2015 put the company's debt sustainability at risk. Since then it has significantly reduced the cost base, continued to improve its product mix and focused on servicing its debt load.
As a result of these efforts Ferrexpo delivered solid first half 2016 financial results, paid-off one of its trade finance loans and demonstrated that it was able to meet the remaining debt obligations going forward. The higher iron ore price and improved investor perception of debt sustainability has resulted in excellent stock performance. We continue to believe that Ferrexpo will generate solid cash flows, and should be able to dramatically reduce its debt burden through 2017, allowing for further stock price gains.
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