Q4 Production Results

22 Jan 2008 07:00

Ferrexpo PLC22 January 2008 Ferrexpo plc Production for Q4 2007 Production in Tonnes '000 Q4 Q3 Change Q4 Change FY FY Change 2007 2007 % 2006 % 2007 2006 %-------------------------------------------------------------------------------------------Iron Ore 7,183 7,305 (2) 7,071 2 28,934 26,425 9 Concentrate 2,664 2,695 (1) 2,661 0 10,652 9,695 10 Pellets from producedconcentrate 2,159 2,184 (1) 2,243 (4) 8,793 8,149 8 62% Fe 1,191 1,229 (3) 1,463 (19) 5,092 5,037 1 65% Fe 968 955 1 780 24 3,701 3,112 19 Pellets Total 2,189 2,230 (2) 2,304 (5) 9,072 8,550 6 62% Fe 1,221 1,275 (4) 1,515 (19) 5,371 5,429 (1) 65% Fe 968 955 1 789 23 3,701 3,121 19------------------------------------------------------------------------------------------- Highlights > Operational efficiency improvements demonstrated in first three quarters of the year continued in Q4 2007> Total pellet production in FY 2007 increased by 6%, with production of pellets from produced ore up 8%> Production of iron ore in Q4 2007 increased by 2% compared to the equivalent period in 2006> Seasonality and an increased focus on stripping works for the northern extension of our open pit mine contributed to slight decline in Q4 2007 iron ore volumes compared to Q3 2007> Iron ore concentrate output in FY 2007 was up 10%, in line with growth in FY 2007 iron ore production> Focus was on pellet production from own produced ore in 2007, as third party iron ore concentrate market remains tight> Moves to increase production of higher quality (65% Fe) pellets continued, with this product now constituting 44% of total pellet production in Q4 2007, and 40% in FY 2007> Production of 65% Fe pellets was up 23% in Q4 2007 compared to Q4 2006, and up 19% in FY 2007> Average achieved price of pellets on a DAF/FOB basis in Q4 2007 decreased by 0.5% compared to Q3 2007, due to changes in sales mix> Average achieved price on a DAF/FOB basis for FY 2007 rose by 20.3% compared to FY 2006> Our ongoing Business Improvement Programme continues to drive improvements in production processes and management systems which are reflected in improved equipment utilisation ratios Viktor Lotous, Chief Operating Officer of Ferrexpo, stated: "I am proud to say that Ferrexpo has significantly improved operationalefficiency and production output in 2007. We were determined to satisfy ourcommitments to our customers in the face of the increasingly strong marketdemand for iron ore pellets, and we have succeeded, managing to increase thevolumes of both ore mined and pellets produced over the year. In particular, thesignificant increase in higher quality 65% Fe pellets in response to marketdemand for this product is of note. Our ambitious production targets werereached through a combination of investment in more efficient equipment togetherwith being able to successfully increase the efficiency of utilisation forexisting machinery. This is a result of the implementation in 2007 ofinitiatives from our ongoing Business Improvement Programme which has alsoenabled us to manage cost growth despite high inflation in Ukraine." For further information, please contact: Ferrexpo: +44 207 389 8304Gavin Mackay Finsbury: +44 207 251 3801Robin WalkerAlex Simmons Ferrexpo 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