Ferrexpo Regulatory News (FXPO)

28 May 2015

Ferrexpo plc

("Ferrexpo", the "Group" or the "Company")

Unaudited First Quarter Results to 31 March 2015

Ferrexpo is today releasing its unaudited financial statements as of and for the three months ended 31 March 2015 in connection with the announcement today by Ferrexpo Finance Plc of an exchange offer and consent solicitation in respect of the remaining US$285,669,000 of its US$500,000,000 7.875 per cent. Guaranteed Notes due 2016 and the commencement of the exchange offer period.

Summary of the unaudited three months financial results for the period ended 31 March 2015:

Financial

§ Turnover of US$258 million (1Q 2014: US$413 million)

§ Profit before tax of US$72 million (1Q 2014: US$145 million)

§ EBITDA of US$112 million (1Q 2014: US$190 million)

§ Group consolidated shareholder equity as of 31 March 2015 of US$363 million (31 December 2014 : US$709million)

§ Net financial indebtedness as of 31 March 2015: US$695 million (31 December 2014: US$678 million)

§ Cash and cash equivalents of US$494 million as of 31 March 2015 (31 December 2014: US$627 million)

§ US$23 million non-cash increase in EBITDA from the revaluation of US dollar receivables at the Group's Ukrainian subsidiaries

Sales and Marketing

§ Average Platts China CFR 62% Fe iron ore price was US$63 per tonne for 1Q 2015 (1Q 2014: US$120 per tonne)

§ Sales volumes were 2,793 thousand tonnes of pellets (1Q 2014: 2,844 thousand tonnes of pellets)

Operations

§ 1Q 2015 total pellet production 2,885 thousand tonnes (1Q 2014: 2,816 thousand tonnes)

§ Production of 65% Fe pellets increased 81% to 2.5 million tonnes (1Q 2014: 1.4 million tonnes)

§ 1Q 2015 average C1 pellet cost US$33.2 per tonne (1Q 2014: US$50.5 per tonne)

Capital Investment

§ 1Q 2015 capital investment US$12 million (1Q 2014: US$78 million)

Key financial information for the three months ended 31 March 2015 is summarised in the table below

(1) Last twelve months

For further information contact:

Notes to Editors:

Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine and transport and sales operations throughout the world. It has been mining and processing high quality iron ore pellets for 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 4th largest supplier of pellets to the global steel industry and the largest producer and exporter of pellets from the Former Soviet Union. In 2014, it produced 11 million tonnes of pellets, a 2% increase compared to 2013 and a record for the Company. Ferrexpo has a diversified customer base supplying steel mills in Austria, China, Japan, Germany as well as other European and Asian countries. Ferrexpo is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information, please visit www.ferrexpo.com

 Interim Consolidated Income Statement

Interim Consolidated Statement of Comprehensive Income

Interim Consolidated Statement of Financial Position

The financial statements were approved by the Board of Directors on the 27 May 2015.

Interim Consolidated Statement of Cash Flows

1 The movement in the comparative period ended 31 December 2014 includes the effect of a VAT receivable balance amounting to US$97,067 thousand recovered through VAT

bonds. See also note 13

2 Net of withholding taxes paid subsequent to the end of the periods ended 31 March 2015 and 2014. See note 11 for further details. 

Interim Consolidated Statement of Changes in Equity

Notes to the Interim Condensed Consolidated Financial Statements

Note 1: Corporate information

Organisation and operation

Ferrexpo plc (the "Company") is incorporated in the United Kingdom, which is considered to be the country of domicile, with its registered office at 2-4 King Street, London, SW1Y 6QL, UK. Ferrexpo plc and its subsidiaries (the "Group") operate two mines and a processing plant near Kremenchug in Ukraine, an interest in a port in Odessa and sales and marketing activities around the world including offices in Switzerland, Dubai, Japan, China, Singapore and Ukraine. The Group also owns logistics assets in Austria which operates a fleet of vessels operating on the Rhine and Danube waterways and an ocean going vessel which provides top off services and operates on international sea routes. The Group's operations are vertically integrated from iron ore mining through to iron ore concentrate and pellet production and subsequent logistics. The Group's mineral properties lie within the Kremenchug Magnetic Anomaly and are currently being extracted at the Gorishne-Plavninskoye and Lavrikovskoye ("GPL ") and Yeristovskoye deposits.

The majority shareholder of the Group is Fevamotinico S.a.r.l. ("Fevamotinico"), a company incorporated in Luxembourg and ultimately owned by The Minco Trust, of which Kostyantin Zhevago, the Group's Chief Executive Officer, is a beneficiary. At the time this report was published, Fevamotinico held 50.3% (2014: 50.3%) of Ferrexpo plc's issued share capital.

The Group comprises of Ferrexpo plc and its consolidated subsidiaries as set out below:

1 Formerly Helogistics Transport GmbH

2 The entity was acquired in February 2014

The Group's interests in the entities listed above are held indirectly by the Company.

At 31 March 2015, the Group also holds through OJSC Ferrexpo Poltava Mining an interest of 48.6% (31 March 2014: 48.6%; 31 December 2014: 48.6%) in TIS Ruda, a Ukrainian port located on the Black Sea. As this is an associate, it is accounted for using the equity method of accounting.

Note 2: Summary of significant accounting policies

Basis of preparation

The interim condensed consolidated financial statements for the three months period ended 31 March 2015 have been prepared in accordance with International Accounting Standard ('IAS') 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all of the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2014.

The interim condensed consolidated financial statements do not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the full year is based on the statutory accounts for the financial year ended 31 December 2014. A copy of the statutory accounts for that year, which were prepared in accordance with International Financial Reporting Standards ('IFRS') issued by the International Accounting Standard Board ('IASB'), as adopted by the European Union as they apply to financial statements of the Group for the year ended 31 December 2014, will be delivered to the Register of Companies before the required filing deadline. The auditors' report under section 495 of the Companies Act 2006 in relation to those accounts was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

During the period ended 31 March 2015, the Ukrainian Hryvnia has devalued by approximately 49% compared to the US Dollar; from 15.769 as at 31 December 2014 to 23.443 as at the end of this reporting period. As a result of this devaluation, the total equity decreased by US$449,905 thousand as of 31 March 2015 due the exchange differences on translating foreign operations, which is reflected in the translation reserve. Further details are provided in note 7 and note 16.

The Group continues to generate positive free cash flow under the lower iron ore price environment. The principal repayments under the Group's debt facilities take place in 2Q 2016 and the Group has sufficient liquidity to operate until this time. The fall in the iron ore price and the lower cash generation of the business is, however, likely to require certain debt facilities to be renewed or rolled over with extended repayment terms in order to ensure that the Group has sufficient working capital in 2016 (see note 17 for further information).

The Directors are of the view that further refinancing and or extension of debt repayment maturities will be available and as such the Directors are of the view that the Group is a going concern and the interim consolidated financial statements have been drawn up on this basis.

Accounting policies adopted

The accounting policies and methods of computation adopted in the preparation of the interim condensed consolidated financial statements are the same as those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2014.

The following new standards and interpretations have been applied from 1 January 2015, with no effect on reported results, financial position or disclosure in the interim financial statements:

Annual Improvements to IFRSs - 2010-2012 Cycle

Annual Improvements to IFRSs - 2011-2013 Cycle

IFRIC 21 Levies

Seasonality

The Group's operations are not affected by seasonality.

Note 3: Segment information

The Group is managed as a single entity, which produces, develops and markets its principal product, iron ore pellets, for sale to the metallurgical industry. While the revenue generated by the Group is monitored at a more detailed level, there are no separate measures of profit reported to the Group's Chief Operating Decision-Maker ('CODM'). In accordance with IFRS 8 Operating Segments, the Group presents its results in a single segment, which are disclosed in the income statement for the Group. The management monitors the operating result of the Group based on a number of measures including EBITDA, C1 costs and the net financial indebtedness.

EBITDA

The Group presents EBITDA because it believes that EBITDA is a useful measure for evaluating its ability to generate cash and its operating performance. The Group's full definition of EBITDA is disclosed in the Glossary on page 24.

C1 costs

C1 costs represent the cash costs of production of iron ore pellets from own ore divided by production volume of own ore, and excludes non-cash costs such as depreciation, pension costs and inventory movements, costs of purchased ore and concentrate and production cost of gravel.

Net financial indebtedness

Net financial indebtedness as defined by the Group comprises cash and cash equivalents, short-term deposits less interest bearing loans and borrowings.

Note 4: Revenue

Revenue for the three months period ended 31 March 2015 consisted of the following:

No sales were made in Ukraine during the periods presented. Export sales of iron ore pellets and concentrate by geographical destination were as follows:

Information about the composition of the markets is provided in the Glossary.

Note 5: Cost of sales

Cost of sales for the three months period ended 31 March 2015 consisted of the following:

Note 6: General and administrative expenses

General and administrative expenses for the three months period ended 31 March 2015 consisted of the following:

Note 7: Foreign exchange gains and losses

Foreign exchange gains and losses for the three months period ended 31 March 2015 consisted of the following:

Operating foreign exchange gains and losses are those items that are directly related to the production and sale of pellets (e.g. trade receivables, trade payables on operating expenditure). Non-operating gains and losses are those associated with the Group's financing and treasury activities and with local income tax payables.

During the period ended 31 March 2015, the Ukrainian Hryvnia has devalued by approximately 49% compared to the US Dollar; from 15.769 as at 31 December 2014 to 23.443 as at the end of this reporting period resulting in translation differences of balances denominated in Hryvnia, such as property plant and equipment (note 12), income taxes recoverable and prepaid and other taxes recoverable and prepaid (note 13), with the effects recognised in the translation reserve (see note 16).

Note 8: Write-offs and impairment losses

Impairment losses relate to adjustments made to the carrying value of assets where this is higher than the recoverable amount. Write-offs and impairment losses for the three months period ended 31 March 2015 consisted of the following:

The impairment loss on available-for-sale financial assets shown for the comparative period ended 31 December 2014 is related to the 15.5% equity investment in Ferrous Resources. Further information is provided in note 20.

Note 9: Finance income and expense

Finance income and expense for the period ended 31 March 2015 consisted of the following:

Other finance income for the comparative period ended 31 December 2014 includes a US$16,497 thousand release of a discount recorded in the prior years to reflect changes in the estimated timing of receipts for VAT receivable balances in dispute that were previously expected to be recovered over a protracted period of time. Further information is provided in note 13.

The discount was built up in periods prior to those presented in these interim consolidated financial statements and was recorded as finance cost as reflecting the time value of money of these VAT receivable balances at the respective end of the reporting periods.

Note 10: Taxation

The Group pays corporate profit tax in a number of jurisdictions and its tax rate is influenced by the mix of profits primarily between Ukraine, Switzerland, the United Kingdom and Dubai, as well as the level of non-deductible expenses for tax purposes in each of these jurisdictions. For the period ended 31 March 2015, the income tax expense was based on an expected tax rate of 19.0% for the financial year 2015, which is below the effective tax rate of 27.7% for the financial year 2014.

The lower expected tax rate for the period ended 31 March 2015 compared to the effective tax rate for the financial year 2014 is mainly a result of lower non-deductible expenses expected during the financial year 2015. The effective tax rate for the financial year 2014 included significant non-deductible expenses in Ukraine and Switzerland including the discount recorded on the VAT bonds sold prior to their maturity and the impairment loss recorded on an equity investment (see note 20 for further details).

During the last three financial years, current VAT receivable balances in Ukraine were mainly recovered in exchange for prepayments of corporate profit tax resulting in a substantial balance of outstanding prepaid corporate profit tax. This balance decreased to US$73,782 thousand during the financial year 2014 as a result of the Ukrainian Hryvnia devaluation compared to the US Dollar (31 March 2014: US$94,396 thousand) and a reduction of the percentage of the corporate profit tax to be prepaid for obtaining VAT refunds. During the three months period ended 31 March 2015, the Hryvnia further devalued from 15.769 at the beginning of the year to 23.443 as at the end of this reporting period resulting in a further decrease of the outstanding balance to US$54,449 thousand.

It is management's view that this balance will be either offset with future profits or recovered through an issuance of bonds by the Ministry of Finance, which are expected to trade with a discount to face value, as happened during the financial year 2014 for overdue VAT receivable balances (see note 13). As at the date of the preparation of these consolidated interim financial statements, there is an uncertainty as to the timing of the recovery of this balance. In light of this uncertainty, it was considered most appropriate to classify the entire balance as non-current in the consolidated statement of financial position.

Note 11: Earnings per share and dividends paid and proposed

Basic EPS is calculated by dividing the net profit for the period attributable to ordinary equity shareholders of Ferrexpo plc by the weighted average number of Ordinary Shares.

Diluted earnings per share are calculated by adjusting the weighted average number of Ordinary Shares in issue on the assumption of conversion of all potentially dilutive Ordinary Shares. All share awards are potentially dilutive and have been considered in the calculation of diluted earnings per share.

The calculation of the basic and diluted earnings per share is based on the following data:

The basic number of ordinary shares is calculated by subtracting the shares held in treasury from the total number of ordinary shares in issue.

Dividends

The interim dividends paid for 2014 and 2013 include withholding taxes of US$6,804 thousand and US$6,684 thousand paid subsequent to the periods ended 31 March 2015 and 2014, respectively.

Note 12: Property, plant and equipment

During the three months period ended 31 March 2015, the Group acquired property, plant and equipment with a cost of US$17,402 thousand (31 March 2014: US$67,372 thousand; 31 December 2014: US$262,252 thousand) and disposed of property, plant and equipment with original costs of US$2,995 thousand (31 March 2014: US$5,472 thousand; 31 December 2014: US$30,683 thousand). The total depreciation charge for the period was US$15,679 thousand (31 March 2014: US$24,502 thousand; 31 December 2014: US$97,901 thousand).

During the reporting period, the Ukrainian Hryvnia has devalued compared to the US Dollar from 15.769 as of 31 December 2014 to 23.443 as of 31 March 2015 reducing property, plant and equipment by US$280,981 thousand. This effect is reflected in the translation reserve included in shareholder's equity. See also note 16.

The carrying value of property, plant and equipment includes capitalised borrowing costs on qualifying assets of US$9,795 thousand (31 March 2014: US$9,885 thousand; 31 December 2014: US$13,162 thousand).

Note 13: Other taxes recoverable and prepaid

As at 31 March 2015 taxes recoverable and prepaid comprised:

As at 31 March 2015, US$44,347 thousand of the VAT receivable relates to the Group's Ukrainian business operations (31 March 2014: US$181,718 thousand; 31 December 2014: US$71,127 thousand). The table below provides a reconciliation of the VAT receivable balances in Ukraine:

The Ukrainian Hryvnia devalued compared to the US Dollar from 15.769 as at 31 December 2014 to 23.443 as at 31 March 2015 reducing the outstanding VAT balances expressed in US Dollar by US$23,609 thousand, which is reflected in the translation reserve. See also note 16.

During the second half of the financial year 2014, bonds were received by the Group with a face value of UAH1,607,101 thousand (US$135,573 thousand at the exchange rate at the date of issuance) in settlement for VAT due of the same amount. The bonds were issued by the Ministry of Finance to settle certain accumulated VAT liabilities and the Group had sold all VAT bonds prior to the end of the financial year 2014 with an average discount of 21.8% resulting in net proceeds totalling UAH1,256,800 thousand (US$97,067 thousand at the exchange rate at the date of sale).

As at 31 March 2015, management expect certain overdue receivable balances to be recovered inside one year through a further issuance of bonds, which will trade at a discount to face value. The adjustment of the discount at the end of the comparative periods ended 31 March 2014 and 31 December 2014 resulted in charges of US$2,063 thousand and US$6,790 thousand, respectively.

Note 14: Inventories

Inventories are held at the lower of cost or net realisable value. As at 31 March 2015 ore stockpiles amounting to US$61,581 thousand (31 March 2014: US$54,161 thousand; 31 December 2014: US$81,987 thousand) were classified as non-current as this ore is not planned to be processed within one year.

Note 15: Cash and cash equivalents

As at 31 March 2015 the Group held cash and cash equivalents of US$493,902 thousand (31 March 2014: US$366,364 thousand; 31 December 2014: US$626,509 thousand).

The Group's exposure to liquidity, counterparty and interest rate risk as well as a sensitivity analysis for financial assets and liabilities are disclosed in note 30 of the Annual Report and Accounts 2014. See also note 18 of these interim condensed consolidated financial statements for further information in respect of transactional banking arrangements with a related party.

Note 16: Share capital and reserves

The share capital of Ferrexpo plc at 31 March 2015 was 613,967,956 (31 March 2014: 613,967,956; 31 December 2014: 613,967,956) Ordinary Shares at par value of £0.10 paid for cash, resulting in share capital of US$121,628 thousand, which is unchanged since the Group's Initial Public Offering in June 2007. This balance includes 25,343,814 shares (31 March 2014: 25,343,814 shares; 31 December 2014: 25,343,814 shares), which are held in treasury, resulting from a share buyback that was undertaken in September 2008, and 3,162,399 shares held in the employee benefit trust reserve (31 March 2014:3,196,064 shares; 31 December 2014: 3,162,399 shares).

The translation reserve includes the effect from the exchange differences arising on translation of non-US Dollar functional currency operations (mainly in Ukrainian Hryvnia). During the period ended 31 March 2015, the Ukrainian Hryvnia devalued from 15.769 as at the beginning of the year to 23.443 as at 31 March 2015 and the exchange differences arising on translation of the Group's foreign operations are initially recognised in the other comprehensive income. See also the Interim Consolidated Statement of Comprehensive Income on page 4 of these financial statements for further details.

As at 31 March 2015 other reserves attributable to equity shareholders of Ferrexpo plc comprised.

Note 17: Interest bearing loans and borrowings

This note provides information about the contractual terms of the Group's interest bearing loans and borrowings, which are measured at amortised cost and denominated in US Dollars.

As at 31 March 2015 the Group has a syndicated US$420 million pre-export finance facility, of which US$277.5 million is available and drawn, and a fully drawn syndicated US$350 million pre-export finance facility. Both are revolving facilities with commitment amortisation over the final 24 months to the final maturity dates of 31 July 2016 and 8 August 2018 respectively. Subject to additional bank commitments being secured, the US$350 million facility can be further increased up to an amount of US$500 million within one year of the effective date, which was 8 August 2014.

As at 31 March 2015 the major bank debt facilities were guaranteed and secured as follows:

· Ferrexpo AG and Ferrexpo Middle East FZE assigned the rights to revenue from certain sales contracts;

· OJSC Ferrexpo Poltava Mining assigned all of its rights of certain export contracts for the pellets sales to Ferrexpo AG and Ferrexpo Middle East FZE; and

· the Group pledged bank accounts of Ferrexpo AG and Ferrexpo Middle East FZE into which all proceeds from the sale of certain iron ore pellet contracts are received.

In addition to the Group's major bank debt facilities listed above, an unsecured US$500 million Eurobond was issued on 7 April 2011, subsequent to the exchange transaction mentioned below, US$285,669 thousand remains due for repayment on 7 April 2016. This bond has a 7.875% coupon and interest is payable on a semi-annual basis.

On 24 February 2015, the Group exchanged and cancelled US$214,331 thousand of the aforementioned US$500 million Eurobond and issued new notes with a par value totalling US$160,724 thousand and repaid US$53,607 thousand in cash. The new notes are repayable in two equal instalments on 7 April 2018 and 7 April 2019 and have a 10.375% interest coupon payable semi-annually.

Further information on the Group's exposure to interest rate, foreign currency and liquidity risk is provided in note 30 of the Annual Report and Accounts 2014.

Note 18: Related party disclosure

During the periods presented the Group entered into arm's length transactions with entities under the common control of the majority owner of the Group, Kostyantin Zhevago and with associated companies and with other related parties. Management considers that the Group has appropriate procedures in place to identify and properly disclose transactions with the related parties.

Entities under common control are those under the control of Kostyantin Zhevago. Associated companies refer to TIS Ruda LLC, in which the Group holds an interest of 48.6%. This is the only associated company of the Group. Other related parties are principally those entities controlled by Anatoly Trefilov who is a member of the supervisory board of OJSC Ferrexpo Poltava Mining. Related party transactions entered into by the Group during the periods presented are summarised in the tables on the following pages.

During the period ended 31 March 2015, the Ukrainian Hryvnia has devalued by approximately 49% compared to the US Dollar; from 15.769 as at 31 December 2014 to 23.443 as at the end of this reporting period. This devaluation had an effect on the totals of the transactions and the balances denominated in Hryvnia when translating into US Dollar.

Revenue, expenses, finance income and finance expenses

Entities under common control

The Group entered into various related party transactions with entities under common control. A description of the most material transactions, which are in aggregate over US$200 thousand (on an expected annualised basis) in the current or comparative periods is given below. All transactions were carried out on an arm's length basis in the normal course of business.

a Sales of power, steam and water and other materials for US$23 thousand (31 March 2014: US$43 thousand; 31 December 2014: US$160 thousand) and income from premises leased to Kislorod PCC of US$38 thousand (31 March 2014: US$64 thousand; 31 December 2014: US$258 thousand).

b Purchases of compressed air, oxygen and metal scrap from Kislorod PCC for US$970 thousand (31 March 2014: US$1,541 thousand; 31 December 2014: US$5,347 thousand); and

b Purchases of cast iron balls from AutoKraZ Holding Co. for US$266 thousand (31 March 2014: US$1,744 thousand; 31 December 2014: US$5,530 thousand).

b Purchases of cast iron balls from OJSC Uzhgorodsky Turbogas for US$249 thousand (31 March 2014: US$251 thousand; 31 December 2014: US$1,209 thousand).

c Purchases of concentrate and other items for resale from Vostok Ruda Ltd for US$277 thousand (31 March 2014: nil; 31 December 2014: US$769 thousand).

d Purchases of spare parts from CJSC Kiev Shipbuilding and Ship Repair Plant ('KSRSSZ') in the amount of US$49 thousand (31 March 2014: US$90 thousand; 31 December 2014: US$821 thousand);

d Purchases of spare parts from Valsa GTV of US$24 thousand (31 March 2014: US$284 thousand; 31 December 2014: US$749 thousand);

d Purchases of ferromanganese from Raw & Refined Commodities AG for US$56 thousand (31 March 2014: US$110 thousand; 31 December 2014: US$512 thousand).

e Procurement of gas from OJSC Ukrzakordongeologia for US$7,886 thousand (31 March 2014: US$7,763 thousand; 31 December 2014: US$39,259 thousand).

f Purchases of advertisement, marketing and general public relations services from FC Vorskla for US$2,722 thousand (31 March 2014: US$2,898 thousand; 31 December 2014: US$11,137 thousand).

g Insurance premiums paid to ASK Omega for workmen's insurance and general cover of US$103 thousand (31 March 2014: US$145 thousand; 31 December 2014: US$574 thousand);

g Fees paid to Bank Finance & Credit (Bank F&C) for bank services of US$69 thousand (31 March 2014: US$118 thousand; 31 December 2014: US$ 439 thousand).

h Transactional banking services are provided to certain subsidiaries of the Group by Bank Finance & Credit (Bank F&C) Finance income and expenses relate to these transactional banking services. Further information is provided under transactional banking arrangements on page 20.

Associated companies

The Group entered into related party transactions with its associated company TIS Ruda LLC, which were carried out on an arm's length basis in the normal course of business for the members of the Group (see note 1). A description of the most material transactions which are in aggregate over US$200 thousand (on an expected annualised basis) in the current or comparative periods is given below:

f Purchases of logistics services in the amount of US$4,927 thousand (31 March 2014: US$5,944 thousand; 31 December 2014: US$24,130 thousand) relating to port operations, including port charges, handling costs, agent commissions and storage costs.

Other related parties

The Group entered into various transactions with other related parties. A description of the most material transactions which are in aggregate over US$200 thousand (on an expected annualised basis) in the current or comparative periods is given below:

a Sales of material and services to Slavutich Ruda Ltd. for US$203 thousand (31 March 2014: US$168 thousand; 31 December 2014: US$508 thousand).

f Purchases of logistics management services from Slavutich Ruda Ltd. relating to customs clearance services and the coordination of rail transit. Total billings amounted to US$2,018 thousand (31 March 2014: US$2,465 thousand; 31 December 2014: US$5,984 thousand). Slavutich Ruda Ltd. earned commission income of US$104 thousand on these services (31 March 2014: US$222 thousand; 31 December 2014: US$1,350 thousand).

Purchases of property, plant, equipment and investments

The table below details the transactions of a capital nature which were undertaken between Group companies and entities under common control, associated companies and other related parties during the periods presented.