Ferrexpo PLC AGM Statement (6956Y)
19 Mai 2016 - 8:02AM
UK Regulatory
TIDMFXPO
RNS Number : 6956Y
Ferrexpo PLC
19 May 2016
Ferrexpo plc
("Ferrexpo", the "Group" or the "Company")
2016 AGM Statement
The Company is releasing the following update as part of its
Annual General Meeting which is being held today.
Trading update
The Group's operations continued to perform strongly in 1Q
2016.
Pellet production from, own ore, grew 6% to 2.9 million tonnes
in 1Q 2016 compared to 1Q 2015 while production of premium 65% Fe
pellets, from own ore, increased 20% compared to 1Q 2015. Overall,
premium 65% Fe pellets represented 96% of total production volumes
(1Q 2015: 85% of production volumes). Total production, including
third party ore, was in line with 1Q 2015 at 2.9 million tonnes
The average C1 cash cost of pellet production continued to fall
in 1Q 2016 due to increased production from own ore, lower oil
prices and the Hryvnia devaluation against the US dollar. The cash
cost of production increased marginally in April following a
recovery in oil prices.
Year to date, sales volumes have been underpinned by strong
demand for pellets. The Company is pleased to report that in May it
has made shipments to new high-quality customers in Western Europe
and South East Asia. With increasing demand, spot pellet premiums
are improving from the low levels of December 2015 although, so
far, they remain below 2015 average levels.
As of 30 April 2016 the Group had repaid US$103 million of debt
amortisation and interest costs since 1 January 2016. The Group has
an overdue VAT receivable of US$10 million which was due for
repayment at the end of April.
Board succession
As part of the ongoing Board refreshment programme and in view
of the provisions of the UK Corporate Governance Code, when an
independent director has completed a nine year term he will no
longer be viewed as independent and will therefore retire from the
Board once a suitable successor has been found. Wolfram Kuoni and
Ihor Mitiukov, who both joined the Board in June 2007, and Oliver
Baring, who joined the Board in December 2007, are seeking
re-election at today's AGM and will retire from the Board once
appropriate successors have been found.
Mike Salamon, who joined the Board in March 2009, will not be
standing for re-election at today's AGM. The Board would like to
thank Mike for his outstanding contribution to Ferrexpo.
Sir Malcolm Field was appointed to the Board as an independent
non-executive director on 10 March 2016. As previously reported,
Sir Malcolm is chairing a sub-committee responsible for reviewing
matters relating to Bank F&C.
As announced on 13 April 2016, the Board today proposes the
election of Mr Stephen Lucas as an independent non-executive
director. If elected, he is intended to succeed Michael Abrahams as
Chairman later in the year.
Michael Abrahams, Non-Executive Chairman, said:
"Ferrexpo is one of the lowest cost pellet producers in the
world enabling it to remain profitable and cash generative during
the current commodities downturn. The Group's production and
marketing operations continue to perform very well, producing
record levels of pellets, notably a significant increase in the
output of the Group's premium 65% Fe pellets, and increasing
Ferrexpo's presence in key markets."
For further information contact:
Ferrexpo:
Ingrid McMahon +44 203 705 5458
Maitland:
James Isola +44 207 379 5151
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 currently the 3rd largest supplier of pellets to the
global steel industry and the largest producer and exporter of
pellets from the Former Soviet Union. In 2015, it produced 11.7
million tonnes of pellets, a 6% increase compared to 2014 and a
record for the Company. Ferrexpo has a diversified customer base
supplying steel mills in Austria, Germany, Japan, South Korea,
China 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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