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Ferrexpo sells 10.6 million tonne of iron ore pellets in 2018

Mining News - Published on Wed, 24 Apr 2019

Image Source: SteelGuru
Ferrexpo plc has announced its financial results for the year ended 31 December 2018. Mr Steve Lucas, Non-executive Chairman, said “I am pleased to report a successful year for Ferrexpo. We continued to benefit from the strong global demand for our high-grade iron ore pellets, which helped deliver strong cash flow despite a rise in costs. This enabled us to increase investment, reduce debt further and pay a record dividend. Our balance sheet is now strong and this gives us a platform to deliver the next stage in our planned expansion. This year we plan to increase investment once more to be able to hit our medium-term production target of 12 million tonnes per annum by 2021 and lay the foundations for our longer-term intention to move to annual output of 20 million tonnes per annum."

Market Environment
Strong market environment for high grade pellets
Group achieved new record pellet premium
Average realised FOB price increased 9% compared to 2017

Operational
Production of pellets increased 2% to 10.6 million tonnes (2017: 10.4 million tonnes)
Production reflected planned pellet line refurbishment in 2Q 2018 and a general increase in maintenance levels
Production of premium 65% Fe pellets in line with 2017 at 9.9 million tonnes
Sales volumes of 10.2 million tonnes (2017: 10.5 million tonnes) reflected 400kt increase in stocks due to temporary logistics constraints
C1 cash cost of productionA of USD 43.3 per tonne (2017: USD 32.3 per tonne) reflected higher commodity input prices, local inflation and increased mining and maintenance activity

Extract of 2018 Financial Performance:
USD million (unless otherwise stated)20182017YoY
Total pellet production (kt)10,60710,4441.6%
Sales volumes (kt)10,22710,467-2.3%

Average CFR 62% iron ore fines price (US$/t)69.571.3-2.5%
Revenue1,2741,1976.4%
C1 cash cost of productionA (US$/t)43.332.334.1%
Underlying EBITDAA503551-8.7%
Underlying EBITDA marginA39%46%-7ppt
Profit for the year335394-15.0%
 

Source :

Posted By : Rabi Wangkhem on Wed, 24 Apr 2019
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