Last checked at 30 Oct 2009 07:00
30 October 2009
Ferrexpo plc
Interim Dividend
Ferrexpo plc ("Ferrexpo" or the "Group") is declaring an interim dividend of 3.3 US cents per share for the first six months of 2009 (H1 2008: 3.2 US cents per share). The interim dividend will be paid in Pounds Sterling, but those shareholders who have in the past elected to receive dividends in US dollars will continue to do so. Other shareholders wishing to receive dividends in US dollars should obtain a Currency Election Form from the Ferrexpo website and return the completed form to the Company's registrars by 13 November 2009. The dividend is payable on 18 December 2009 to shareholders on the register on 13 November 2009.
Michael Abrahams, Ferrexpo Chairman, said:
"As we announced at the time of our Interim Results on 5 August 2009, the Board deferred its decision to declare an interim dividend for the first six months of 2009 as a result of poor market conditions in the second quarter and our expectation that cash flow visibility would improve thereafter. Since that announcement, Ferrexpo has successfully concluded price negotiations with the majority of its long term contract customers at prices broadly equivalent to the prevailing Benchmark price for iron ore pellets until April 2010. As a result the Group's cash generation and the visibility of future cash flows have improved as expected.
It is the view of the Board that Ferrexpo should continue to pay modest consistent dividends based on continuing profitability and that the business has sufficient operational flexibility to respond to the demands it will face for the remainder of the year and beyond. The Group has operations which are cash generative and can both support returns to shareholders and form a platform to finance the development of its world class undeveloped reserves. The Board therefore believes it is appropriate to continue with an interim dividend in line with prior years, reflecting the Group's resilience and continued profitability through the downturn."
For further information, please contact:
Ferrexpo: +44 207 389 8304
Gavin Mackay
Pelham PR: +44 207 337 1500
Charles Vivian
Evgeniy Chuikov
Notes to Editors:
Ferrexpo is a Swiss headquartered resources Group 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 per annum, 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.