Ferrexpo Plc (the U.K.), controlling Poltava and Yeristovo mining combines, in 2018 increased total pellet production by 1.6% compared with 2017, to 10.607 million tonnes.
According to a press release of the company issued on Tuesday, over the period production of 65% Fe pellets (Ferrexpo Premium Pellets, FPP and Ferrexpo Premium Pellets plus, FPP+) totaled 9.95 million tonnes (a rise of 0.4%) and 62% Fe pellets (Ferrexpo Basic Pellets, FBP) – 682,490 tonnes (a rise of 22.2%).
Production of 65% Fe pellets from own ore was 9.824 million tonnes (a fall of 0.1%) and 62% Fe pellets – 682,490 tonnes (a rise by 22.2%).
In Q4 2018, total pellet production grew by 7.2% compared with Q3 2018, to 2.851 million tonnes.
“Total 2019 pellet production is expected to be in line with 2018 at 10.6 million tonnes as a result of ongoing maintenance,” the company said.
2018 sales volumes will be approximately 10.2 million tonnes (2017 sales volumes: 10.5 million tonnes). Sales volumes were impacted by reduced barge shipments given the low water levels on the Danube River in H2 2018. Slower than expected rail shipments in December 2018 and the timing of a capesize shipment falling into January 2019 also impacted sales volumes. The group expects these sales volumes to be caught up in H1 2019.
The group’s average received price was approximately 9% higher in 2018 compared to 2017, reflecting stronger premiums for higher quality iron ore, including higher average pellet premiums, offset by a slightly lower average 62% Fe iron ore fines price and higher international freight rates.
“The full year average 2018 cash cost of production is expected to be approximately $44 per tonne compared to $33 per tonne in 2017 due to higher energy prices and increased mining costs. Net debt as of December 31, 2018 was approximately $340 million (December 31, 2017: $403 million). The group’s cash balance as of December 31, 2018 was approximately $60 million while undrawn available debt facilities amounted to $205 million, the press service said.
