TIDMFXPO
RNS Number : 1235F
Ferrexpo PLC
06 July 2023
6 July 2023
Ferrexpo plc
("Ferrexpo" or the "Company" or the "Group")
Production Report for 2Q 2023
Ferrexpo plc (LSE: FXPO) , a premium iron ore pellet producer
and exporter to the global steel industry, with operations in
central Ukraine, and customers across Europe and Asia, is pleased
to report production results for the second quarter ("the quarter"
or "2Q 2023") and six months to the end of June 2023 ("1H 2023" or
"first half"):
-- The war in Ukraine remains very challenging, however Ferrexpo
continues to produce, transport and sell its products.
-- The safety and wellbeing of the Group's workforce is the
highest priority, and the Group continues to take extensive
measures to protect its workforce, their families and local
communities.
-- For the quarter and first half, the Group reported LTIFRs of
0.31, below the historic five year trailing average of 0.69.
-- Despite the ongoing conflict in Ukraine, and associated
energy and logistics constraints during the first half of the year,
the Group successfully operated two pelletiser lines, the second
which was recommissioned earlier in the year, ramping up to add
additional flexibility and capacity.
-- With stable production from a first pellet line, and an
initial contribution from second pellet line, total iron ore pellet
production for 2Q 2023 was 1,066 million tonnes, 18% higher
compared to the previous quarter, and for the 1H 2023 1,967 million
tonnes, a 57% increase compared to 2H 2022.
-- The focus on higher grade iron ore production continued
during the quarter, all grading 65% Fe or above, and comprised
entirely of high grade blast furnace pellets.
-- Sales continued to be exported by rail and barge to
Central-Eastern Europe, and the Black Sea. Sales for the quarter
totalled 1.2 million tonnes, 45% higher than the previous quarter,
and 2.1 million tonnes for 1H 2023, a 15% increase compared to 2H
2022.
-- The Group intends to continue to operate with between one and
two pellet lines for the remainder of the year, in line with 1H
2023, assuming no further material changes to the operating
environment and logistics availability in Ukraine.
Lucio Genovese , Interim Executive Chair commented:
"The end of this week will mark 500 days since Russia invaded
Ukraine. On behalf of the Board, and everybody at Ferrexpo, we must
commend the people of Ukraine for their incredible resilience. I
would also like to acknowledge all those who have tragically lost
their lives, especially the 27 brave members of the Ferrexpo
workforce who served in the armed forces.
"Despite the ongoing bombardment, and in the face of so many
challenges, the commitment and resourcefulness of our workforce
means that we are able to adapt our business. It is pleasing to see
that during the first half, a second pellet line returned to
production, improving flexibility and enabling us to recover
production. Logistics, however, remain constrained, and whilst we
now have the capacity to produce more, currently we do not have
sufficient availability at alternative Black Sea ports to export
more.
"During the first six months we have continued to maintain a
strong cash position, whilst funding our CAPEX commitments. We
continue to assess alternative supply routes in the near-term, and
indeed looking to a post-war future, we are developing plans to
rebuild capacity so that we can return to full production levels
and play our part in the recovery of Ukraine."
Summary production statistics Q2 2023 and 1H 2023**
Fe Grade 2Q 2023 1Q 2023 1H 2023 2H 2022
(kt) (kt) Change (kt) (kt) Change
------------------------- ---------- --------- --------- -------- --------- --------- --------
Total commercial production
(pellets and commercial
concentrate) 1,172 954 +23% 2,126 1,335 +59%
Total pellet production 1,066 901 +18% 1,967 1,256 +57%
Pellet production
comprised of:
o Direct Reduction
Pellets 67% 0 0 - 0 263 -
o Ferrexpo Premium
Pellets 65% 1,066 901 +18% 1,967 993 +98%
o Ferrexpo Basic
Pellets 62% 0 0 - 0 0 -
Commercial concentrate
production 67% 106 54 +96% 160 106 +51%
------------------------- ---------- --------- --------- -------- --------- --------- --------
Contact:
For further information, please contact:
Ferrexpo:
+44 (0)207 389 8305 / +44 (0)7733
Nick Bias n.bias@ferrexpo.ch 177 831
Tavistock:
Jos Simson
Emily Moss +44 (0)207 920 3150 / +44 (0)7785
Gareth Tredway ferrexpo@tavistock.co.uk 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. Before Russia's invasion of
Ukraine in February 2022, the Group was the world's third largest
exporter of pellets to the global steel industry. 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
.
Notes:
*LTIFR numbers are estimated and will be confirmed with the
publication of the interim results.
**Due to the ongoing war in Ukraine, and the multiple challenges
that this places on production, it is not considered appropriate at
the current time to compare quarterly and half yearly production
numbers to same period last year, i.e. 2Q 2023 to 2Q 2022 and 1H
2023 to 1H 2022, because the circumstances in which they are
produced are different. Even withstanding seasonal anomalies, it is
believed that at the present time, investors and other readers will
have a better understanding of how the Company is performing if the
latest quarterly and half yearly production is compared to the
previous period (i.e. 2Q 2023 to 1Q 2023 and 1H 2023 to 2H2022).
Hence, for this and subsequent reporting periods, and until further
notice, it has been decided to present production reports in this
time format.
Please note that all numbers contained herein maybe subject to
change.
The Company will report Interim Results for the six months ended
30 June 2023 on 2 August 2023.
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END
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