3rd Qtr Production Report

1 Nov 2007 07:01

Ferrexpo PLC01 November 2007 1 November 2007 Production for 3Q 2007 Production in Q3 Q2 Change Q3 Change YTD YTD ChangeTonnes '000 2007 2007 % 2006 % 2007 2006 %Iron Ore 7,305 7,306 (0) 6,832 7 21,751 19,354 12Concentrate 2,695 2,668 1 2,559 5 7,988 7,035 14Pellets Total 2,230 2,324 (4) 2,323 (4) 6,882 6,246 10 62% Fe 1,275 1,360 (6) 1,554 (18) 4,150 3,915 6 65% Fe 955 964 (1) 769 24 2,732 2,332 17 incl. pellets from produced concentrate 2,184 2,233 (1) 2,168 2 6,634 5,906 13 62% Fe 1,230 1,268 (2) 1,399 (11) 3,902 3,583 10 65% Fe 954 964 (1) 769 24 2,732 2,323 18 Pricing for 3Q 2007 +------------------+------+------+------+------+------+-------+-------+------+| Pricing $/t | Q3 | Q2 |Change| Q3 |Change| YTD | YTD |Change|| +------+------+------+------+------+-------+-------+------+| | 2007 | 2007 | % | 2006 | % | 2007 | 2006 | % |+------------------+------+------+------+------+------+-------+-------+------+|Average achieved |75.24 |74.15 | 2 |64.56 | 17 | 71.92 | 60.76 | 18 ||price (DAF/FOB) | | | | | | | | |+------------------+------+------+------+------+------+-------+-------+------+ Highlights > Continuing our strong performance in Q2 2007, our YTD productionremains well above 2006 levels across our product range > Iron ore production was flat versus Q2 2007, but increased by 7% overQ3 2006 > Concentrate output continues to demonstrate growth, in line with ironore production (up 14% in 2007 YTD versus the comparable period in 2006) > The production of higher quality (65% Fe) pellets as a proportion oftotal production (43% now versus 33% in Q3 2006) has grown significantly > This increase in average pellet quality together with decreasedpurchases of third party iron ore concentrate as a result of tight market supplyconditions resulted in the slight (4%) quarter-on-quarter decline in totalpellet production in Q3 2007 versus Q2 2007 > The Business Improvement Programme is progressing well with ongoingefficiency improvements being seen across our operations. In addition, theordering of 6 new drag lines in the quarter in preparation for stripping at ourYeristovskoe deposit is just one part of our commitment to developing the restof our asset over the coming years > Ferrexpo has seen overall pellet production for the year grow by 10%over the comparable period in 2006 > Average achieved prices are up 18% versus the comparable period lastyear, reflecting benchmark pricing increases, as well as changes to our productmix and to the mix of geographies into which we sell our pellets > Prices are also up 2% versus Q2 due to changes in product andgeographic sales mix Viktor Lotous, Chief Operating Officer of Ferrexpo, stated: "Ferrexpo Poltava Mining has continued to meet the increasing market demand forhigher quality iron ore pellets by significantly increasing our production of65% Fe pellets as a proportion of total production in the first three quartersof 2007. Demand for pellets remains high in our core markets and our businessimprovement programme will ensure that we are able to supply more and higherquality product to meet market requirements in the coming years." For further information, please contact: Ferrexpo: +44 20 7389 8304Gavin Mackay Finsbury +44 20 7251 3801Robin WalkerAlex Simmons Ferrexpo Poltava Mining +380 53 487 4390Alexander Dovgalev Notes to Editors: Ferrexpo is a Swiss headquartered resources company with assets in Ukraine,principally involved in the production and export of iron ore pellets, used inproducing steel. Current output is over 9 million tonnes, approximately 85% ofwhich is exported to steelmakers around the world. The Group is currentlyundertaking a significant growth programme and listed on the main market of theLondon Stock Exchange in June 2007 under the ticker FXPO. For furtherinformation please visit www.ferrexpo.com. This information is provided by RNS The company news service from the London Stock Exchange