Q1 Production Report

18 Apr 2008 07:00

Ferrexpo PLC18 April 2008 18 April 2008 Ferrexpo plc Production for Q1 2008 Production in Q1 Q4 Change Q1 Change YTD YTD Change Tonnes '000 2008 2007 % 2007 % 2008 2007 % --------------------------------------------------------------------------------------------------Iron Ore 7,131.5 7,182.8 (0.7) 7,140.2 (0.1) 7,131.5 7,140.2 (0.1)Concentrate 2,695.0 2,663.6 1.2 2,625.2 2.7 2,695.0 2,625.2 2.7Pellets from produced raw materials 2,232.7 2,158.8 3.4 2,217.3 0.7 2,232.7 2,217.3 0.7 62% Fe 1,279.4 1,191.1 7.4 1,404.2 (8.9) 1,279.4 1,404.2 (8.9) 65% Fe 953.3 967.7 (1.5) 813.1 17.2 953.3 813.1 17.2Pellets Total 2,268.2 2,189.0 3.6 2,328.6 (2.6) 2,268.2 2,328.6 (2.6) 62% Fe 1,314.9 1,221.3 7.7 1,515.5 (13.2) 1,314.9 1,515.5 (13.2) 65% Fe 953.3 967.7 (1.5) 813.1 17.2 953.3 813.1 17.2 -------------------------------------------------------------------------------------------------- Highlights > Production in Q1 2008 continues at the high levels established in 2007> Total pellet output in Q1 2008 increased by 3.6% compared to the previous quarter, with output of pellets from own mined ore up 3.4%> Prices for purchased concentrate remain high, and accordingly focus remains on production of pellets from own mined ore> Further product quality improvements in Q1 2008, with production of higher quality (65% Fe) pellets up 17% versus the equivalent quarter in 2007> Emphasis placed on mining higher grade ore to facilitate increased pellet quality> Higher grade ore output in Q1 2008 increased by 4% compared to Q4 2007> Stripping volumes increased by 13% in Q1 2008 compared to the equivalent period in 2007, facilitating future iron ore production growth> Operational efficiency improvements continued, driven by the ongoing Business Improvement Programme> Ukrainian PPI cost inflation in the first quarter amounted to 12.2%> Average achieved price on a DAF/FOB basis for Q1 2008 rose by 5.7% compared to FY 2007 Viktor Lotous, Chief Operating Officer of Ferrexpo, stated: "I am pleased to report that Ferrexpo continues to produce at the same highlevels seen last year. The Company is facing cost inflation in Ukraine in 2008,as well as the impact of higher prices for steel-based inputs and diesel fuel inparticular. The implementation of further process and efficiency improvementinitiatives will continue to help us manage our input costs effectively andmitigate inflationary pressures, to achieve our ambitious production targets andimprove our product quality. Our project to expand and extend our GPL mine is onschedule and within budget, and progress has been excellent. We expect to seeincreased mining volumes as a result of this project from 2009." For further information, please contact: Ferrexpo: +44 207 389 8304Gavin MackayFinsbury: +44 207 251 3801Robin WalkerAlex SimmonsFerrexpo Poltava Mining (Ukraine): +38 053 4874390Alexander Dovgalev Notes to Editors: Ferrexpo is a Swiss headquartered resources company with assets in Ukraine,principally involved in the production and export of iron ore pellets, used inproducing steel. Current output is over 9 million tonnes, approximately 85% ofwhich is exported to steelmakers around the world. The Group is currentlyundertaking a significant growth programme and listed on the main market of theLondon Stock Exchange in June 2007 under the ticker FXPO. For furtherinformation please visit www.ferrexpo.com. This information is provided by RNS The company news service from the London Stock Exchange