Ferrexpo Regulatory News (FXPO)

17 Apr 2008 07:00

Ferrexpo PLC17 April 2008 17 April 2008 2008 Contract Price Settlements Ferrexpo plc ("Ferrexpo" or the "Company") is pleased to announce that it hasreached price settlements with an initial group of its framework contractcustomers in its core markets representing more than 50 percent of expected 2008sales. These agreed prices for iron ore pellets represent an average increase ofmore than 90 percent over the average price achieved by the Company for thesecustomers during the 2007/2008 contract year. The new prices will apply for the2008/2009 contract year, which runs from 1 April 2008 to 31 March 2009. Ferrexposells approximately 90% of its production under long-term framework contracts,with the remainder sold in the spot markets. The Company expects that settlements will shortly be finalised for the balanceof its sales book at levels consistent with the recently announced internationaliron ore pellet benchmark increase. A further announcement will be made in thisregard in due course. Mike Oppenheimer CEO Commented. "These settlements are in line with the current iron ore market fundamentals,and provide us with greater confidence in committing to our planned investmentsin capacity growth and pellet quality improvements. We continue to develop our relationships with our key customers who benefit fromboth reliable logistics and long term supply certainty by dealing with Ferrexpo. In order to meet the strong demand from our customers we are committed to theaggressive development of our extensive iron reserves which are around thefourth largest in the world and the biggest in Europe." For further information, please contact: Ferrexpo: +44 207 389 8302Gavin Mackay Finsbury: +44 207 251 3801Robin WalkerAlex Simmons 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