Last checked at 15 Apr 2009 07:00
15 April 2009
Interim Management Statement
Ferrexpo plc ("Ferrexpo" or the "Group") today issues its interim management statement for the period from 1 January to 1 April 2009, in accordance with the UK Listing Authority's Disclosure and Transparency Rules.
| Production in Tonnes ‘000 | Q1 | Q4 | Change | Q1 | Change | YTD | YTD | Change |
| | 2009 | 2008 | % | 2008 | % | 2009 | 2008 | % |
| Iron Ore | 6,192.1 | 6,162.3 | 0.5 | 7,131.5 | (13.2) | 6,192.1 | 7,131.5 | (13.2) |
| Concentrate | 2,287.6 | 2,246.1 | 1.8 | 2,695.0 | (15.1) | 2,287.6 | 2,695.0 | (15.1) |
| Pellets from produced raw materials | 1,883.3 | 1,838.1 | 2.5 | 2,232.7 | (15.6) | 1,883.3 | 2,232.7 | (15.6) |
| 62% Fe | 905.9 | 815.4 | 11.1 | 1,279.4 | (29.2) | 905.9 | 1,279.4 | (29.2) |
| 65% Fe | 977.4 | 1,022.7 | (4.4) | 953.3 | 2.5 | 977.4 | 953.3 | 2.5 |
| Pellets Total | 1,883.3 | 1,933.7 | (2.6) | 2,268.2 | (17.0) | 1,883.3 | 2,268.2 | (17.0) |
| 62% Fe | 905.9 | 911.0 | (0.6) | 1,314.9 | (31.1) | 905.9 | 1,314.9 | (31.1) |
| 65% Fe | 977.4 | 1,022.7 | (4.4) | 953.3 | 2.5 | 977.4 | 953.3 | 2.5 |
Highlights
Production
Total pellet production reduced slightly by 2.6% compared to Q4 2008, impacted by adverse weather conditions in January
Full production achieved in March in line with prior year
Higher grade 65% Fe pellet output increased by 2.5% compared to the same period last year
Costs
Average C1 cash cost of production for Q1 2009 was US$37.4/t
Lower production in January increased average costs but was offset by lower costs in March
March C1 cost was US$35.0/t - in line with December 2008
Sales and Prices
Sales volume in Q1 2009 was 1,722kt
Average achieved DAF/FOB price in Q1 2009 was US$76.7/t
Seaborne spot sales continue to compensate for weaker contract markets
Kostyantin Zhevago, Ferrexpo CEO, said:
"Ferrexpo remains flexible in the face of continuing market volatility. We have been able to keep our costs low while successfully ramping production back up to full capacity in March and placing substantially all of our production in the market during the first quarter. We continue to trade profitably."
Next Update
Ferrexpo will issue a brief trading update to coincide with its Annual General Meeting on 19 May 2009.
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 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.