FXPO Ferrexpo Plc

TIDMFXPO

RNS Number : 4224E

Ferrexpo PLC

07 July 2021

7 July 2021

Ferrexpo plc

("Ferrexpo" or the "Company" or the "Group")

Production Report for 2Q 2021

Summary:

-- COVID-19 update: Ferrexpo's operations and logistics continued to operate with minimal impact during 2Q 2021.

-- Total iron ore pellet production of 2.8 million tonnes ("Mt") in 2Q 2021, representing a 5% increase quarter on quarter and in line year on year (-0.8%), with quarterly growth reflecting the successful completion of pelletiser upgrade work during the prior period.

o Upgrade work on the third pellet line, out of four pellet lines overall, completed at the end of June 2021.

o A final pelletiser line upgrade is planned for 3Q 2021, with the Group's overall pelletiser capacity to increase by 0.5-1.0Mt per annum following completion of this work.

-- Production of high-quality pellets (65% Fe and 67% Fe) represented 100% of total pellet output in 2Q 2021 (2Q 2020: 99%).

-- The Group continues to develop its offering of direct reduction ("DR") 67% Fe pellets, with this pellet type representing the pathway to low-carbon steel production. In the first half of 2021, the Group signed its first long term contract for the supply of DR pellets, with further trial shipments and samples for testing dispatched to additional prospective customers.

-- Additional production of 85,000 tonnes of high-grade concentrate for sale in 2Q 2021, relating to the commissioning and ramp up of the Group's concentrate stockyard project, an investment that enables the continued production of concentrate during periods of pelletiser maintenance and upgrade work.

-- Total sales volumes of 5.6Mt in 1H 2021, broadly in line with production for the period, and a 9% reduction year on year as a result of the stockpile drawdown process carried out in 1H 2020.

 
 (000' tonnes, unless           Product       2Q   vs 1Q    vs 2Q      6M    vs 6M 
  stated otherwise)               Grade     2021    2021     2020    2021     2020 
-----------------------------  ---------  ------  ------  -------  ------  ------- 
 Total commercial production 
  (comprising pellets 
  & concentrate)                           2,934     +6%      +2%   5,712      +2% 
 
 Pellet production                         2,849     +5%   (0.8%)   5,563   (0.6%) 
 Pellet production comprised 
  of: 
  o Direct Reduction              67% 
   ("DR") Pellets*                 Fe         85    +70%    (13%)     135    (28%) 
  o Ferrexpo Premium              65% 
   Pellets                         Fe      2,764     +4%    +0.5%   5,428      +2% 
                                  62% 
  o Ferrexpo Basic Pellets         Fe          -       -   (100%)       -   (100%) 
 
 Commercial concentrate           67% 
  production                       Fe         85    +31%        -     149        - 
-----------------------------  ---------  ------  ------  -------  ------  ------- 
 

Note: all production shown in table above from own ore; no production from third party materials.

* Please note that the above figure for DR pellet production in 1Q 2021 has been adjusted to reflect an additional 14kt of production in 1Q 2021, with production of 65% Fe production adjusted down by the corresponding amount. The total volume of pellet production remains unchanged for this period.

For further information, please contact:

 
 
     Ferrexpo: 
   Rob Simmons            r.simmons@ferrexpo.ch    +44 207 389 8305 
   Tavistock: 
   Jos Simson 
    Gareth Tredway                                 +44 207 920 3150 
    Annabel de Morgan   ferrexpo@tavistock.co.uk    +44 778 855 4035 
 

Notes to Editors:

Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine. It has been mining, processing and selling high quality iron ore pellets to the global steel industry for over 40 years. In 2020, the Group produced 11.2 Mt of iron ore pellets, a 7% increase on the prior year. The Company is ranked as the world's 3(rd) largest exporter of pellets to the global steel industry with a market share of approximately 9%. Ferrexpo has a diversified customer base supplying steel mills in Austria, Germany, Japan, South Korea, Taiwan, China, Slovakia, the Czech Republic, Turkey, Vietnam and America. Ferrexpo has a premium listing on the main market of the London Stock Exchange under the ticker FXPO. For further information, please visit www.ferrexpo.com.

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