Last checked at 14 Jul 2009 07:00
14 July 2009
Q2 Production Report
Ferrexpo plc ("Ferrexpo" or the "Group") today issues its production report for the second quarter of 2009 ahead of its half-year results announcement on 5 August.
Production Report for Q2 2009
| Tonnes '000 | Q2 | Q1 | Change | Q2 | Change | YTD | YTD | Change | ||
| 2009 | 2009 | % | 2008 | % | 2009 | 2008 | % | |||
| Production from own raw materials | ||||||||||
| Iron Ore | 7,501.4 | 6,192.1 | 21.1 | 7,229.9 | 3.8 | 13,693.5 | 14,361.4 | (4.7) | ||
| Concentrate | 2,702.9 | 2,287.6 | 18.2 | 2,744.9 | (1.5) | 4,990.5 | 5,439.9 | (8.3) | ||
| Pellets |
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| 62% Fe | 1,214.4 | 905.9 | 34.1 | 1,304.7 | (6.9) | 2,120.3 | 2,584.1 | (17.9) | ||
| 65% Fe | 1,026.0 | 977.4 | 5.0 |
| 967.0 | 6.1 |
| 2,003.4 | 1,920.3 | 4.3 |
| Pellets Total | 2,240.4 | 1,883.3 | 19.0 | 2,271.7 | (1.4) | 4,123.7 | 4,504.4 | (8.5) | ||
| Production from purchased raw materials / tolling | ||||||||||
| Pellets | ||||||||||
| 62% Fe | 15.0 | 0.0 | - | 56.4 | (73.4) | 15.0 | 91.9 | (83.7) | ||
| 65% Fe | 0.0 | 0.0 | 0.0 |
| 0.0 | 0.0 |
| 0.0 | 0.0 | 0.0 |
| Pellets Total | 15.0 | 0.0 | - | 56.4 | (73.4) | 15.0 | 91.9 | (83.7) | ||
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| Pellets Grand Total | 2,255.4 | 1,883.3 | 19.8 |
| 2,328.1 | (3.1) |
| 4138.7 | 4596.3 | (10.0) |
Highlights
Total pellet production rose by 21.1% compared to Q1 2009, and by 3.8% compared to the equivalent quarter last year
Ferrexpo produced at full mining capacity throughout Q2 2009
Higher grade 65% Fe pellet output increased by 4.3% in the first half of 2009 compared to the same period last year
Sales volume in H1 2009 exceeded production during the period
Production costs continue to trend downwards
Continued high levels of spot sales to China exposed Ferrexpo to higher freight rates, reducing average achieved DAF/FOB prices and margins in Q2
Gradual improvement in demand over the first half of the year in Traditional markets and Ukraine
Ferrexpo traded profitably in the first half of 2009
Kostyantin Zhevago, Ferrexpo CEO, said:
"Ferrexpo continued to trade profitably in the second quarter of 2009. Freight rates from the Black Sea to China did put pressure on our average achieved DAF/FOB prices during the period, but this is likely to prove a temporary phenomenon. The outlook for iron ore is improving for the next quarter, particularly in our Traditional markets, which will reduce our reliance on the Asian seaborne spot market to some degree."
Next Update
Ferrexpo will release its results for the six months ending 30 June 2009 on 5 August 2009.
For further information, please contact:
Ferrexpo: +44 207 389 8304
Gavin Mackay
Pelham PR +44 207 337 1538
Charles Vivian
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.