Ferrexpo PLC Production Update (4103A)
22 Dezember 2014 - 8:00AM
UK Regulatory
TIDMFXPO
RNS Number : 4103A
Ferrexpo PLC
22 December 2014
22 December 2014
Ferrexpo plc
("Ferrexpo", the "Group" or the "Company")
Production Update
Ferrexpo plc ("Ferrexpo", the "Company" or the "Group") today
announces that its total pellet production for the 11 months ended
30 November 2014 increased by 3% to 10.2 million tonnes (11M 2013:
9.9 million tonnes). This production was not impacted by the recent
difficulties in Ukraine.
In December 2014, total pellet production is expected to fall
below plan by approximately 140 thousand tonnes as a result of
reduced power availability during the peak demand hours of the day.
This is due to lower domestic coal production and low stocks at
coal fired power stations. Ferrexpo is currently holding pellet
stocks and the Group's December shipments are expected to be
unaffected.
The Ukrainian authorities are introducing measures to mitigate
this situation including looking to import coal and electricity as
well as allowing corporates to directly import electricity or
generate it through tolling during the peak demand hours of the
day.
Should the situation remain unchanged, however, Ferrexpo expects
that the capacity of its processing facilities will remain at
around current levels in 1Q 2015, after which it is expected to
improve in 2Q 2015 when peak power demand reduces following the
winter months. The Group is also actively managing the situation to
minimise the impact of power reductions in co-operation with
electricity generators and suppliers.
In 1Q 2015, in the event of continued power constraints,
Ferrexpo will increase output of 65% Fe premium pellets and
prioritise delivery under long term contracts. Spot sales will be
at lower levels.
Ferrexpo notes that since 1 January 2014 the Ukrainian hryvnia
has depreciated from UAH8.0 per US dollar to UAH15.0 per US dollar
as of 30 November 2014 and to UAH15.8 per US dollar at the current
time. This has further reduced Ferrexpo's C1 cash cost of
production, which was on average US$44 per tonne in November.
Ferrexpo's liquidity in Ukraine is currently being held stable to
ensure operations are shielded as far as possible from further
disruptions and are now sufficient to fund approximately two months
of operating and capital expenditures at current exchange
rates.
For further information contact:
Ferrexpo:
Ingrid McMahon +44 207 389 8304
Maitland:
Peter Ogden +44 207 379 5151 or +44 7793
858 211
This information is provided by RNS
The company news service from the London Stock Exchange
END
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