Last checked at 24 May 2012 07:00
24 May 2012
Ferrexpo plc AGM Statement
Ferrexpo plc ("Ferrexpo", the "Company" or the "Group")
At Ferrexpo's AGM, which will take place today, 24 May 2012 at 11.00am, Michael Abrahams, Chairman, will make the following comments:
The year has started well, and Ferrexpo Poltava Mining continues to operate at full capacity. In the period to 30 April, 2012, own ore pellet production was 6.2% higher as compared to the same period 2011. Sales volumes remained in line with 2011 at 3.0 million tonnes and the average selling price was 9% lower reflecting customer mix and lower market prices.
As reported at the year end, Ferrexpo continues its negotiations with the tax authorities to recover overdue VAT. The total VAT balance was US$172m at 31 December 2011, which increased to US$195m at 30 April 2012. The Group continues to address this as a matter of priority.
Ferrexpo has previously disclosed that, for over six years, it has been subject to a legal claim over a shareholding in Ferrexpo Poltava Mining. A further hearing is scheduled for 12 June 2012. The Directors expect the case to be protracted. The Board continues to receive legal advice that the case against Ferrexpo has no merit under Ukrainian law for legal, technical and practical reasons.
Future Prospects
There has been much comment recently about Ukraine, and the Board continues to monitor developments in the country. As demonstrated by Ferrexpo's results to date, the Group's mining and production operations are performing well in Ukraine, where it has an experienced management team and a highly-skilled workforce.
The Group continues to experience good demand for its iron ore pellets in the year to date. It is making significant progress with its capital projects, and is on track to increase production to 12 million tonnes of pellets per annum in 2014. Its mine infrastructure works and pit development at Ferrexpo Yeristovo Mining are advancing as planned. The Board remains confident that it will deliver on its growth plans.
For further information:
Ferrexpo: | |
Emma Villiers | +44 207 389 8306 |
Pelham Bell Pottinger | |
Daniel Thöle | +44 7428 967520 |
James Macfarlane | +44 7841 672 831 / +44 207 861 3864 |
Notes to Editors:
Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine. It is principally involved in the production and export of high quality iron ore pellets, which are used in the manufacture of steel. Ferrexpo's resource base is one of the largest iron ore deposits in the world. Its current producing asset, FPM, produced approximately 10 million tonnes of iron ore pellets in 2011 making it the largest exporter of pellets in the CIS. The Company has a diversified customer base supplying steel mills in Austria, Serbia, Slovakia, Czech Republic, Germany and other European states, as well as in China, India, Japan, and other Asian countries. Ferrexpo is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information, please visit www.ferrexpo.com