Last checked at 19 May 2009 07:00
FERREXPO
19 May 2009
AGM Trading Statement
Ahead of its Annual General Meeting later today and further to the Interim Management Statement released on 15 April 2008, Ferrexpo plc ("Ferrexpo" or "the Company") is pleased to update the market on its current trading.
Ferrexpo continues to produce at full capacity, and is successfully selling its entire production. Sales volumes in April were 898kt, exceeding the Company's production in that month. Spot prices for iron ore sold into China remain under pressure on an FOB basis, primarily as a result of high freight rates from the Black Sea to China. However, reliance on the seaborne spot market for the placement of sales volumes has been reduced in recent weeks by the initial resumption of low levels of offtake by the Company's European and Ukrainian customers. Cash costs of production continue to benefit from the weaker Ukrainian Hyrvnia, and Ferrexpo continues to trade profitably.
Michael Abrahams, Chairman of Ferrexpo, said:
"Ferrexpo continues to perform well in extremely tough trading conditions. The Company has successfully positioned itself as a reliable and flexible iron ore supplier to both the European and Asian markets. We are a cost competitive seller into China, while our proximity to customers in Europe and our strong relationships there has enabled us not only to continue to supply those customers, but also gain market share in that region. The resumption of sales to certain European and Ukrainian customers indicates the start of a slow normalisation of sales conditions in these markets. We expect pricing to remain under pressure in the current quarter and although there is a likelihood of improvements in the market, it is difficult to predict with certainty the outcome in the second half of the year."
For further information, please contact:
Ferrexpo: +44 207 389 8304
Gavin Mackay
Finsbury: +44 207 251 3801
Robin Walker
Peter Russell
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 in producing steel. Current output is over 9 million tonnes, most of which is exported to steelmakers around the world. The Group is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information please visit www.ferrexpo.com.