Q2 Production Report

12 Jul 2007 07:00

Ferrexpo PLC12 July 2007 12 July 2007 Ferrexpo Poltava Mining Production for 2Q 2007 Production Q2 Q1 Change Q2 Change YTD YTD Changein Tonnes '000 2007 2007 % 2006 % 1HY 1HY % 2007 2006----------------------------------------------------------------------------------Iron Ore 7,306 7,140 2 6,826 7 14,446 12,522 15Concentrate 2,668 2,625 2 2,425 10 5,293 4,475 18Pellets 2,324 2,329 () 2,217 5 4,653 3,923 19Total 62% Fe 1,360 1,516 (10) 1,465 (7) 2,876 2,360 22 65% Fe 964 813 19 752 28 1,777 1,563 14incl. 2,233 2,225 0 2,093 7 4,458 3,738 19pellets fromproducedconcentrate 62% Fe 1,268 1,412 (10) 1,341 (5) 2,680 2,175 23 65% Fe 965 813 19 752 28 1,778 1,563 14---------------------------------------------------------------------------------- Highlights • Production continues well above 2006 levels across our product range • Iron ore output was up 2% on 1Q 2007 levels and 7% on 1Q 2006 due to the ongoing upgrading of mining equipment and associated efficiency enhancements. Ferrexpo has a long term improvement plan in place which will continue to reap dividends in optimizing output at the current pit. • Concentrate production dynamics are very close to those of iron ore and demonstrate sustainable growth (up 18% in 1HY 2007 versus 1HY 2006). • Total pellet production for 2Q remained about the same as in 1Q but it should be underlined there was a significant growth of 65% pellets in total production (the share exceeded 41% versus 34% in 1Q). These quality improvements account for much of the overall decrease (3%) in volume of pellets from produced concentrate compared with 1Q results. • Pellet production for 1HY 2007 is 19% up versus 1HY 2006 and indicates Ferrexpo leading the way among Ukrainian pellet producers Viktor Lotous, Chief Operating Officer of Ferrexpo, stated: "Based on 2Q resultsI am pleased to say that Ferrexpo Poltava Mining continues to lead the Ukrainianmining sector by production growth. The actions we have and will continue totake to address operational efficiency in mining provide the basis for stablegrowth of pellet production volumes as well as desired quality improvements.Overall demand for pellets remains high and the outlook is stable." For further information, please contact: Ferrexpo: +44 207 389 8302Dennis McShane Finsbury: +44 207 251 3801Robin WalkerAlex Simmons Alexander Dovgalev, Ferrexpo Poltava Mining +38 053 4874390 Notes to Editors: Ferrexpo is a resources company with assets in Ukraine, principally involved inthe production and export of iron ore pellets, used in producing steel. Currentoutput is around 9 million tonnes, around 90% of which is exported tosteelmakers around the world. The Group is currently undertaking a significantgrowth programme and listed on the main market of the London Stock Exchange inJune 2007 under the ticker FXPO. For further information please visitwww.ferrexpo.com. This information is provided by RNS The company news service from the London Stock Exchange