Ferrexpo plc, a mining company with major assets in Ukraine, produced 3 million 297,441 thousand tons of pellets in January-June this year, up 67.6% year-on-year (1.967 million tons).
According to a press release on Monday, Ferrexpo produced 1 million 483,468 thousand tons of pellets in the second quarter of this year, down 18.2% from the previous quarter (1 million 813,973 thousand tons).
At the same time, the total production of commercial products (pellets and iron ore concentrate) in the first half of this year increased by 75.3% compared to the same period in 2023, to 3 million 727.336 million tons from 2.126 million tons. In particular, the production of saleable concentrate amounted to 429.865 thousand tons compared to 160 thousand tons in January-June 2023.
Commenting on the group’s performance, Interim Executive Chairman Lucio Genovese pointed to strong production results for the first six months of 2024, up 83% compared to the same reporting period in 2023 and up 75% compared to the first half of last year.
“This is our best result since the start of the full-scale invasion of Ukraine in February 2022. During the quarter, access to the Black Sea shipping corridor allowed us to continue shipping from Ukrainian ports. It is estimated that over 800 vessels, including 90 carrying ferrous metals, have safely passed through the corridor since it opened in late 2023. An increase in the number of shipowners willing to charter vessels to Ukrainian ports has led to improved availability, but freight rates and insurance premiums remain high not only for passage to Ukraine but also through the Red Sea,” Genovese said.
He also stated that other price pressure factors continued to increase in the second quarter, especially electricity prices. Attacks on energy production and transmission infrastructure have significantly reduced Ukraine’s domestic energy supply. Mr. Genovese added that Ferrexpo had started looking for alternative energy from Ukraine’s European neighbors in advance, which has so far resulted in minimal disruption to its operations.
“So far, we believe that the level of risk is acceptable given the ongoing war in Ukraine. We will continue to utilize all available export capacity to ensure that the interests of all stakeholders are supported, while maintaining labor levels to increase production, generate taxes and royalties for the government and continue our humanitarian activities,” the acting CEO summarized.
According to the press release, the group successfully operated two and sometimes three pelletizing lines (out of four) during the quarter, changing product quality depending on customer demand and expanding logistics capabilities. With the variable capacity of each pelletizing line, total production for the quarter amounted to 1 million 672,506 thousand tons, including 1 million 483,468 thousand tons of pellets and 189,038 thousand tons of concentrate.
DR pellet production resumed during the quarter. The Group’s nearly completed press filtration complex has improved the physical strength and chemical quality of pellets.
Group CFO Nikolay Kladiev noted that during January-June this year, the company quickly brought previously idle capacities back into operation, thanks to renewed access to customers from the Middle East, North Africa and Asia, which led to an improvement in the cash conversion cycle.
“While we took advantage of the opportunity to produce, export and sell more, the higher iron ore prices we benefited from in the first quarter did not carry over into the second quarter. This, combined with higher electricity prices, resulted in lower margins as we approached the end of the second quarter. However, we maintained our cash position, even as we invested in capex projects aimed at maintaining resilience and improving efficiency,” the CFO stated.
As reported, Ferrexpo produced 3.845 million tons of pellets in 2023, down 36.5% from 2022.
Ferrexpo owns a 100% stake in Yeristovo Mining, 99.9% in Bilanivsky GOK and 100% in Poltava Mining.
Ferrexpo plc, a mining company with major assets in Ukraine, and Salzgitter Flachstahl GmbH, a subsidiary of German steel company Salzgitter AG, have announced that they will strengthen their cooperation.
According to a stock exchange announcement, the companies signed a memorandum of understanding for the supply of direct reduced iron (DRI) pellets for the production of low-carbon steel.
It is specified that the memorandum on the use of pellets in SALCOS (Salzgitter Low CO2-Steelmaking), a production facility of Salzgitter, provides for the implementation of a decarbonization program, joint development of strategies for the use of raw materials within environmentally friendly supply chains.
“We have agreed on the terms of our cooperation for the future. Ferrexpo’s DR pellets can significantly reduce emissions in steel production under the SALCOS program,” explained Jaroslawa Blonska, Acting Marketing Director at Ferrexpo.
Gerd Baresh, Technical Director of Salzgitter Flachstahl GmbH, expressed his hope for intensified cooperation in the context of the SALCOS program: “This agreement will help us reduce carbon emissions in our supply chains and stimulate the production of environmentally friendly steel.”
The SALCOS program is expected to be technically completed by 2033.
Ferrexpo is an iron ore company with assets in Ukraine. Ferrexpo owns 100% of shares in Poltava Mining, 100% of shares in Yeristovo Mining and 99.9% of shares in Bilanivsky Mining.
Ferrexpo plc, a mining company with major assets in Ukraine, produced 3.814 million tonnes of pellets in January-March this year, up twice year-on-year (0.901 million tonnes) and 2.9 times more than in the previous quarter (0.627 million tonnes).
“Our operations delivered exceptional results in the first quarter, with total production up 203% quarter-on-quarter to over two million tonnes of iron ore pellets and concentrate. This is our best quarterly result since the full-scale invasion of Ukraine,” Executive Chairman Lucio Genovese said in a release on Tuesday.
It is specified that the total production of commercial products (pellets and iron ore concentrate) in the first quarter of this year amounted to 2.054 million tons, which is 2.1 times higher than in the first quarter of 2023 and 3 times higher than in the previous quarter. In particular, the production of saleable concentrate in January-March 2024 amounted to 241 thousand tons, compared to 53 thousand tons in January-March 2023 and 50 thousand tons in October-December 2023.
Genovese noted that Ferrexpo was able to export products from Ukrainian ports again during the quarter, which allowed it to supply larger volumes to Europe and resume sales to customers in the Middle East and North Africa and Asia.
According to him, the company is currently seeing an increase in the conscription of its employees: 669 Ferrexpo employees are serving in the army, which is the highest figure since the start of the full-scale invasion, while 67 employees have returned and a veterans’ reintegration program is underway.
“While we consider the level of risk acceptable given the ongoing war in Ukraine, we will continue to utilize all available export capacity to ensure that the interests of all stakeholders are supported,” Genovese concluded.
The Group also successfully operated two and sometimes three pelletizing lines (out of four) during the quarter, changing product quality depending on customer demand and expanding logistics capabilities.
Total sales for the quarter amounted to 1.992 million tons, producing only pellets with an iron content of 65%.
As reported, Ferrexpo produced 3.845 million tons of pellets in 2023, down 36.5% from 2022.
Ferrexpo owns a 100% stake in Yeristovo Mining, 99.9% in Bilanivsky GOK and 100% in Poltava Mining.
The company ended 2023 with a net loss of $84.8 million compared to a net profit of $220.0 million in 2022. Revenue for 2023 fell by 47.8% to $651.8 million, and EBITDA by 83% to $130.2 million.
Ferrexpo plc, a mining company with assets in Ukraine, produced 3.845 million tonnes of pellets in 2023, down 36.5% from 6.053 million tonnes in 2022, due to the fact that 2022 included a period of full-scale production before the Russian invasion of Ukraine.
According to the company’s announcement on Thursday, pellet production in the fourth quarter of 2023 fell by half compared to the previous quarter to 0.627 million tons, but this is 50.4% more than in the fourth quarter of 2022.
It is noted that in 2023, only premium pellets with an iron content of 65% were produced, while direct reduced iron pellets (DRI, 67% iron) and pellets with an iron content of 62% were not produced.
In addition, it is specified that the total production volume includes 50 thousand pellets produced in the fourth quarter from third-party concentrate.
“Even with the onset of winter, we were able to operate one and sometimes two of our four pellet production lines to meet our reduced export capacity and continue to supply premium products to our premium customers,” Interim Executive Chairman Lucio Genovese said in the release.
Speaking about the past year, the company notes the deaths of 14 employees who served in the Armed Forces of Ukraine, which increased the total number of employees killed since the beginning of the Russian invasion in 2022 to 34. It is specified that 754 of our employees are currently serving in the Armed Forces of Ukraine.
It is indicated that the company continues to retain most of its employees, despite the fact that it was forced to significantly reduce production. This, together with rising logistics costs in the absence of access to Black Sea export routes, has led to a decline in profitability.
However, the report notes that Ukraine’s recent success in opening Black Sea export corridors has made it possible to resume shipping from certain ports.
“When the time is right, Ferrexpo plans to launch an additional pellet production line and resume exports via this route, provided it is safe and cost-effective,” the release said.
In addition, it is noted that iron ore prices rose by more than 20% in the fourth quarter, thanks to China’s support for more steel-intensive sectors of its economy, and continued to hold at this level until the New Year.
“We are also seeing the first signs of a pick-up in pellet demand in Europe. Together, these factors can support our large fixed cost base and higher logistics costs. In my view, the improved demand and higher prices bode well for Ferrexpo for the year ahead,” Genovese concluded.
It is noted that the group’s net cash position, including minor adjustments, at the end of the year was approximately $109 million compared to $106 million a year earlier, with minimal lease obligations and no debt.
Ferrexpo owns 100% of Yeristovo Mining, 99.9% of Bilanivsky GOK and 100% of Poltava Mining.
In the first half of 2023, Ferréxpo cut its net profit threefold to $27.01 million, while revenue fell 2.8 times to $334.01 million, and its EBITDA fell 7.6 times to $63.64 million.
Ferrexpo, a mining company with assets in Ukraine, has appointed Stuart Brown, formerly of De Beers, as an independent non-executive director to its board of directors.
According to the company’s information on Monday, Brown took office on October 22.
Ferrexpo also reports that Graeme Dacomb, who has been a member of the board of directors since May 2020, will resign from the board at the end of this year. It is clarified that Dacomb is currently the chairman of the audit committee, and Brown will take over from January 1, 2024, which will provide the necessary time for an orderly transfer of functions. Brown is also appointed as a member of the Audit Committee upon his appointment to the Board of Directors.
The press release states that Brown is an experienced mining executive with extensive board-level experience. He previously held the positions of CFO and CEO at De Beers and its various subsidiaries. Most recently, he served as President and CEO of Mountain Region Diamonds Inc. listed on the Toronto Stock Exchange and CEO of Firestone Diamonds Plc, formerly listed on the AIM of the London Stock Exchange.
It is also reported that after Brown’s appointment, the number of independent directors will increase to five, two of whom are women. After Dacombe’s resignation at the end of this year, the number of independent directors will be reduced to four.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns a 100% stake in Yeristovo Mining, 99.9% in Bilanivsky GOK and 100% in Poltava Mining.
Mining company Ferrexpo plc with assets in Ukraine produced 3.218 million tons of pellets in January-September this year, down 42.9% year-on-year (5.637 million tons).
According to the company’s announcement on Thursday, pellet production in the third quarter of 2023 increased by 17% to 1.251 million tons compared to the previous quarter.
In 2023, only pellets with an iron content of 65% were produced.
At the same time, the total production of marketable products (pellets and iron ore concentrate) for 9 months of this year amounted to 3.475 million tons. Including the production of commercial concentrate in January-September 2023 amounted to 257 thousand tons.
As reported, in 2022, Ferrexpo produced 6.053 million tons of pellets, which is 46% less than in 2021. At the same time, pellet production in the fourth quarter of 2022 decreased by 86% compared to the fourth quarter of 2021, and by 50% to 417 thousand tons by September-December 2022.
In 2022, production of premium pellets with 65% iron content amounted to 5.7 million tonnes (down 47%), including 417 thousand tonnes in the fourth quarter (down 28% quarter-on-quarter and 86% year-on-year). Last year’s production of direct reduced iron pellets (DRI, 67% iron) amounted to 353 thousand tons (down 18% by 2021), which were not produced in the fourth quarter of 2022.
No pellets with 62% iron content were produced in 2022.
At the same time, the total production of commercial products (pellets and iron ore concentrate) in 2022 decreased by 46% to 6.177 million tons, in the fourth quarter compared to the third quarter – by 49%, and by Q4 2021 – by 85%, to 457 thousand tons. In particular, the production of salable concentrate last year decreased by 47% to 124 thousand tons, including 40 thousand tons in the fourth quarter of 2022 (down 38% quarter-on-quarter and up 3% year-on-year).
Total annual sales in 2022 amounted to 6.2 million tons, down 46% compared to 2021.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of Yeristovo Mining, 99.9% of Bilanivsky GOK and 100% of Poltava Mining.
