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.
Metinvest Group’s Central Mining and Processing Plant (CMP, Kryvyi Rih, Dnipro region) has modernized its pellet production equipment.
According to the company’s press release, the pelletizing plant has completed a major overhaul of the OK-324 roasting machine.
It is specified that the pelletizing plant’s process equipment operates continuously, around the clock, for more than 7.5 thousand hours a year, so its technical condition is of high priority. The repairs were carried out as part of the pellet production process optimization program.
“One of the key areas was the restoration of the refractory masonry of the roasting machine’s furnace and the repair of six nozzles. This is crucial for maintaining the thermal insulation of the roasting machine’s furnace space and will help avoid the destruction of the brickwork and ensure continuous operation during the overhaul period,” explained Andrey Ivanov, Deputy Head of the pelletizing plant at the Central Enrichment Plant.
Reportedly, an experimental solution was also implemented during the repair to apply shotcrete to the surface of the No. 9 and No. 10 tanks. This can significantly increase the resistance of refractory insulation by reducing the impact of biofuels. Additionally, the drip traps of smoke exhausters D2 and D5 were repaired, and three sections of drip trap No. 2 of smoke exhausters D2 were completely replaced. This will help reduce emissions and improve the gas dynamics of the heat flow.
The installed shaft rotation of the D3 smoke exhauster will reduce the equipment’s operating time during the plant shutdown for scheduled repairs, help reduce energy consumption, and increase equipment reliability. In addition, the conveyor transport was maintained, including the replacement of rollers, seals, and lining of the reloading units.
Central GOK is one of the five largest producers of mining raw materials in Ukraine. The company specializes in the extraction and production of iron ore concentrate and pellets.
CGOK is a part of Metinvest Group, whose major shareholders are System Capital Management (SCM, Donetsk) (71.24%) and Smart Holding Group (23.76%).
Metinvest Group’s management company is Metinvest Holding LLC.
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.
Mining company Ferrexpo plc with assets in Ukraine in January-June this year produced 1.967 million tons of pellets, which is 2.3 times less than in the same period last year (4.797 million tons).
The company said Thursday that pellet production in the second quarter of 2023 was up 18 percent from the previous quarter, but down 48.9 percent from the second quarter of 2022 to 1.066 million tons.
In 2023, only pellets with 65% iron content were produced.
At the same time, the total production of commercial products (pellets and iron ore concentrate) in the first half of this year decreased 2.27 times to 2.126 million tons compared to the first half of 2022. Including the output of commercial concentrate in January-June 2023 amounted to 160 thousand tons (19 thousand tons in January-June 2022).
The press release explains that Ferrexpo continues to produce, transport and sell its products under war conditions, with associated energy and logistical constraints. Meanwhile, the group has successfully operated two pellet production lines, the second of which was re-commissioned earlier this year.
The emphasis in production is on producing pellets with a higher iron content of 65% Fe or higher. Sales continued to be exported by rail and barge to Central and Eastern Europe and the Black Sea. Sales for the quarter totaled 1.2 million tons, up 45% from the previous quarter and 2.1 million tons in the first half of 2023.
The Group intends to continue using one to two pellet lines through the end of the year, as it did in the first half of the year, provided there are no further significant changes in the operating environment and logistics availability in Ukraine.
Acting Executive Chairman Lucio Genovese noted in his commentary that despite incessant shelling and multiple challenges, the company has been able to adapt its business. In particular, a second pellet line returned to production in the first half of 2023, increasing flexibility and the ability to rebuild production. However, logistics remain limited.
“Although we now have the ability to produce more, we do not currently have enough alternative Black Sea ports to export more,” Genovese stated.
He also reported that “during the first six months, we continued to maintain a strong cash position while funding our capital commitments.”
“We continue to evaluate alternative supply routes in the near term, and we are looking to the post-war future, developing plans to restore capacity so that we can return to full production levels and play our part in rebuilding Ukraine,” the top manager summarized.
As reported, Ferrexpo produced 6.053 million tons of pellets in 2022, down 46% from 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 September-December 2022 decreased by 50% to 417,000 tons.
Production of premium pellets with 65% iron content in 2022 was 5.7 million tonnes (down 47%), including 417 thousand tonnes in the fourth quarter (down 28% quarter-on-quarter and 86% year-on-year). Direct reduction of iron pellets (DRI, 67% iron) output last year was 353 thousand tonnes (down 18% q-o-q), which was not produced in Q4-2022.
No pellets with 62% iron content were produced in 2022.
At the same time, 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, by 49%, and by Q4-2021 – by 85%, to 457 thousand tons. Last year’s output of marketable concentrate fell by 47% to 124 kt, including 40 kt in Q4-2022 (down 38% q-o-q and up 3% q-o-q).
Total annual sales in 2022 were 6.2 million tons, down 46% from 2021.
Poltava GOK has four pellet production lines.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of Yeristovsky GOK LLC, 99.9% of Belanovsky GOK LLC and 100% of Poltava GOK PJSC.
British Ferrexpo plc, which controls in Ukraine, in particular, Poltava and Yeristovo mining and processing plants, reduced production of pellets by 14% in January-June 2022 compared to the same period last year, to 4.797 million tonnes.
According to the company’s press release on Thursday, pellet production in the second quarter of this year decreased by 23% compared to the first quarter, and by 27% by April-June 2021, to 2.085 million tonnes.
In the first half of 2022, production of premium pellets with an iron content of 65% amounted to 4.707 million tonnes (a decrease of 13%), including in the second quarter – 1.994 million tonnes (a decrease of 26% compared to the previous quarter and 28% compared to the same period last of the year). Output of direct reduced iron pellets (DRI, 67% of iron) in January-June amounted to 90,000 tonnes (an increase of 33% compared to six months of 2021), which were produced in the second quarter of this year, while they were not produced in the first one.
Pellets with an iron content of 62% were not produced in January-June of the current year.
At the same time, total production of marketable products (pellets and iron ore concentrate) over six months of 2022 decreased by 16%, to 4.816 million tonnes, in the second quarter compared to the first one – by 22%, and versus April-June 2021 – by 28%, to 2.103 million tonnes. In particular, output of commercial concentrate over six months of 2022 decreased by 88%, to 19,000 tonnes, the entire volume was produced in the second quarter, while there was no output in January-March.
The company explains the decline in pellet production by the ongoing war of the Russian Federation in Ukraine and the associated logistical restrictions. The Group continues to operate one to three of its pelletizing lines, reflecting the availability of logistics in Ukraine.
Sales in the first half of 2022 were 4.4 million tonnes, a decrease of 21% year-on-year and reflecting logistical constraints. At the same time, the group is negotiating with a number of logistics providers to resume access to maritime markets through neighboring countries.
Jim North, Chief Executive Officer of Ferrexpo, noted in his comment that the company continues to work and adapt its business in Ukraine as new risks emerge.
“We also continue to be impressed by the remarkable resilience of the people of Ukraine, despite the continual bombardment over the last four months. Our production result in the second quarter of 2022 reflects the determination of our people, our suppliers and our customers… In terms of logistics availability, which remains the largest constraint on our business at the present time, we are advancing efforts to increase seaborne exports and have made initial deliveries to customers,” he said.
Ferrexpo is an iron ore company with assets in Ukraine.
British-based Ferrexpo Plc, which in Ukraine, in particular, controls Poltava and Yeristovo ore mining and processing plants (Poltava GOK and Yeristovo GOK), in January 2021, increased pellet output by 7%, , to 1.05 million tonnes.
A representative of the company told Interfax-Ukraine that during this period the output of concentrate increased by 12.2%, to 1.3 million tonnes.
As reported, Ferrexpo in 2020 increased its total pellet output by 7%, year-over-year, to 11.218 million tonnes. Concentrate output increased by 5.9%, to 14 million tonnes.
Ferrexpo is an iron ore company with assets in Ukraine.
