TIDMFXPO
RNS Number : 3145M
Ferrexpo PLC
11 January 2023
11 January 2023
Ferrexpo plc
("Ferrexpo" or the "Company" or the "Group")
Production Report and Trading Update for 4Q 2022
Ferrexpo plc (LSE: FXPO), a producer and exporter of high grade
iron ore pellets to the global steel industry, with operations in
central Ukraine, hereby provides the following summary of its
production for the fourth quarter of 2022 ("4Q 2022") and a trading
update, in line with previous year-end reporting:
-- The safety of Ferrexpo's workforce continues to be the
Group's first priority. The Group's operations have completed a
second successive fatality-free year in 2022, and overall safety
performance remains in line with recent years. The war in Ukraine
continues to impact the Group's workforce and communities across
the country, and the Group continues to support Ukraine at this
difficult time.
-- Total iron ore pellet production for 4Q 2022 of 0.4 million
tonnes (4Q 2021: 3.1 million tonnes). This reduction is primarily
due to the loss of electrical power for the majority of the
quarter, which was partially restored in late December, in addition
to existing constraints relating to Russia's invasion. As of the
date of this release, the Group continues to produce iron ore
pellets using one pelletiser line (out of a total of four).
-- Operations continue to focus on the production of high grade
forms of iron ore, with 100% of output grading 65% Fe or above in
4Q 2022. Given recent operational disruptions, the Group elected to
reduce output of higher grade Direct Reduction ("DR") Pellets (67%
Fe) during the period. DR pellets represented 6% of total pellet
production in 2022 (2021: 4%), and the Group expects to continue to
increase its focus on this particular product in the coming
year.
-- Full year pellet production of 6.1 million tonnes in 2022,
down 46% year on year, reflecting operational and logistical
constraints throughout 2022 due to the war in Ukraine (2021: 11.2
million tonnes produced).
-- Despite interruptions to the Group's production during 4Q
2022, shipments to customers continued as planned at approximately
the same run rate as seen in the previous quarter of 2022.
-- Total full year sales of 6.2 million tonnes in 2022,
representing a 46% decrease year on year due to the ongoing war in
Ukraine, principally relating to the closure of Ukraine's access to
the Black Sea, Russian attacks on Ukraine's state-owned electricity
network and logistics constraints for users of Ukraine's railway
network, in addition to other factors.
-- Full year production of commercial concentrate of 124
kilotonnes, representing 2% of total iron ore output in 2022 (2021:
2%), providing an additional product in the Group's marketing
portfolio.
-- Resignation of Non-executive Director Kostyantin Zhevago in December 2022.
-- Group net cash position, subject to minor final year-end
adjustments, of approximately US$105 million as of 31 December 2022
(31 December 2021: US$117 million), with minimal lease obligations
and no debt.
Jim North, Chief Executive Officer of Ferrexpo commented:
"The past year has been an exceptionally difficult year for
anyone connected to Ukraine. After more than 320 days of conflict,
however, Ukraine continues to successfully defend itself. At
Ferrexpo, our operating and marketing teams have remained resilient
throughout the war, and we remain committed to supporting the
people of Ukraine through our continued operations and investments.
Our full year pellet production of 6.1 million tonnes reflects both
the determination of our workforce, and the strong and supportive
relationships that we have with our stakeholders, such as our
global customer network and local government. We hope that the
coming year will bring peace, and we look forward to being a part
of the process to deliver a new future for our people, their
families and communities across Ukraine."
Product
Thousand tonnes, unless Grade QoQ (vs. YoY (vs. 12M YoY (vs.
stated otherwise Fe 4Q 2022 3Q 2022 4Q 2021 2022 12M 2021
--------------------------------- -------- -------- --------- --------- ------ ----------
Total commercial production
(pellets and commercial
concentrate) 457 (49%) (85%) 6,177 (46%)
Total pellet production 417 (50%) (86%) 6,053 (46%)
Pellet production comprised
of:
o Direct Reduction Pellets 67% - (100%) (100%) 353 (18%)
o Ferrexpo Premium Pellets 65% 417 (28%) (86%) 5,700 (47%)
o Ferrexpo Basic Pellets 62% - - - - -
Commercial concentrate
production 67% 40 (38%) +3% 124 (47%)
--------------------------------- -------- -------- --------- --------- ------ ----------
For further information, please contact:
Ferrexpo:
Rob Simmons r.simmons@ferrexpo.ch +44 207 389 8305
Tavistock: ferrexpo@tavistock.co.uk +44 207 920 3150
Jos Simson
Emily Moss
Gareth Tredway +44 7785 974 264
About Ferrexpo:
Ferrexpo is a Swiss headquartered iron ore company with assets
in Ukraine and a premium listing on the London Stock Exchange in
the FTSE 250 index (ticker FXPO). The Group produces high grade
iron ore pellets, which are a premium product for the global steel
industry and enable reduced carbon emissions and increased
productivity for steelmakers when the Group's iron ore pellets are
converted into steel, compared to more commonly traded forms of
iron ore. Ferrexpo's operations have been supplying the global
steel industry for over 50 years, and in 2022 the Group produced
6.1 million tonnes of iron ore pellets, despite the war in Ukraine.
Historically, Ferrexpo has been the world's third largest exporter
of pellets to the global steel industry, recently having a market
share of approximately 9% in 2021. The Group has a global customer
base comprising of premium steel mills around the world, which
includes steel mills in Austria, Germany, Japan, South Korea,
Taiwan, China, Slovakia, the Czech Republic, Turkey, Vietnam and
America. For further information, please visit www.ferrexpo.com
.
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