Last checked at 7 Oct 2014 07:00
7 October 2014
Ferrexpo plc
Third Quarter 2014 Production and Trading Update
Ferrexpo plc ("Ferrexpo", the "Company" or the "Group") today issues the following trading statement for the third quarter of 2014.
Production
For the nine months ended 30 September 2014, pellet production from own ore was approximately 8.1 million tonnes. This represented an increase of 3.7% compared to the same period in 2013. Total pellet production year to date, including third party materials, was 8.3 million, an increase of 2.6% compared to the same period in 2013. Total production of 65% Fe pellets increased by 10.2% compared to 2013 to 4.1 million tonnes. As previously reported, production was constrained in the second quarter due to a scheduled refurbishment of pellet line number 3.
Monthly pellet production in the third quarter increased compared to the first half of the year and reached 975 thousand tonnes in September.
Production in Tonnes '000 | Q3 2014 | Q2 2014 | Change | 9M | 9M | Change | ||
% | 2014 | 2013 | % | |||||
Pellets from FPM Ore | 1,993.51 | 1,651.51 | 20.7 | 5,652.46 | 6,362.04 | (11.2) | ||
62% Fe | 537.71 | 865.83 | (37.9) | 2,531.68 | 3,309.04 | (23.5) | ||
65% Fe | 1,455.80 | 785.68 | 85.3 | 3,120.78 | 3,053.00 | 2.2 | ||
Pellets from FYM ore | 846.37 | 847.23 | (0.1) | 2,400.29 | 1,404.31 | 70.9 | ||
62% Fe | 846.37 | 413.57 | 104.6 | 1,594.30 | 957.46 | 66.5 | ||
65% Fe | 0.00 | 433.66 | (100.0) | 805.99 | 446.85 | 80.4 | ||
Pellet production from own ore | 2,839.88 | 2,498.74 | 13.7 | 8,052.75 | 7,766.34 | 3.7 | ||
62% Fe | 1,384.08 | 1,279.40 | 8.2 | 4,125.98 | 4,266.50 | (3.3) | ||
65% Fe | 1,455.80 | 1,219.34 | 19.4 | 3,926.78 | 3,499.84 | 12.2 | ||
Pellets from third party materials | 49.92 | 53.76 | (7.1) | 205.65 | 281.46 | (26.9) | ||
62% Fe | 49.92 | 0.00 | - | 49.92 | 76.30 | (34.6) | ||
65% Fe | 0.00 | 53.76 | (100.0) | 155.72 | 205.16 | (24.1) | ||
Total pellet production | 2,889.80 | 2,552.50 | 13.2 | 8,258.40 | 8,047.80 | 2.6 | ||
62% Fe | 1,434.00 | 1,279.40 | 12.1 | 4,175.90 | 4,342.80 | (3.8) | ||
65% Fe | 1,455.80 | 1,273.10 | 14.4 | 4,082.50 | 3,705.00 | 10.2 |
Sales Volumes
Sales volumes of pellets for the nine months to 30 September 2014 were 8.2 million tonnes which represented an increase of 8% compared to the same period in 2013. Throughout the period there was strong demand from all market segments for the Group's pellets.
Iron Ore Price
In the third quarter of 2014 the average Platts benchmark price for 62% Fe iron ore fines declined by 12% to US$90 per tonne compared to the second quarter of 2014. During the period, the Group's average realised price declined in line with the market. It's achieved price was above the Platts benchmark price reflecting the market premium received for pellets compared to iron ore fines.
Costs
The Group's average C1 cash cost of production for the three months to 30 September 2014 continued to benefit from the effects of higher production volumes and local currency devaluation.
Capex
The Group has substantially completed its projects to increase output to 12 million tonnes per year and improve the quality of all pellets to 65% Fe. In the current low priced iron ore market environment new growth capital expenditure will be reduced and will focus on high return quick payback projects in order to maintain the strength of the balance sheet.
The FYM concentrator project will be resumed when appropriate, while low level capital expenditure will be made to maintain the project integrity.
For further information contact:
Ferrexpo: | |
Ingrid McMahon | +44 207 389 8304
|
Maitland: | |
Peter Ogden | +44 207 379 5151 |
Liz Morley |
Notes to Editors:
Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine. It has been mining, processing and selling high quality iron ore pellets to the global steel industry for over 35 years. Ferrexpo's resource base is one of the largest iron ore deposits in the world. The Group is the 5th largest supplier of pellets to the global steel industry and the largest exporter of pellets from the CIS. In 2013, it produced 10.8 million tonnes of pellets, a 12% increase compared to 2012. Ferrexpo has a diversified customer base supplying steel mills in Austria, Slovakia, the Czech Republic, Germany and other European states, as well as in China, India, Japan, Taiwan and South Korea. Ferrexpo is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information, please visit www.ferrexpo.com