The British multinational asset management company Schroders Plc (London) has reduced its voting stake in Ferrexpo plc, which controls Poltava and Yeristovo Mining and Processing Plants (PGOK and Yenakiieve Mining) in Ukraine, to less than 5%.
According to Ferrexpo’s stock exchange announcement on Monday, the 5% threshold was lowered on July 14 this year.
It is specified that Schroders Plc’s voting stake is currently 29 million 590.980 thousand, or 4.947189% of the total number of votes in the company, while previously it was 5.453490%.
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.
Schroders plc is a British multinational asset management company founded in 1804 and based in London. The company employs over 5000 people worldwide in 32 offices in Europe, America, Asia, Africa and the Middle East.
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.
Ferrexpo CEO Jim North has unexpectedly decided to leave the company after leading it for three years, beginning in 2020.
According to a stock exchange report Tuesday, Jim North announced he is stepping down as CEO and executive director of the company after nine years with the group to pursue other opportunities.
It clarifies that North will step down as CEO after an orderly management transition process beginning June 30, 2023. Ferrexpo announced North’s appointment as acting CEO on May 18, 2020.
North will leave the company’s board of directors following the conclusion of its annual general meeting on May 25, 2023, and will also step down as a director of various group subsidiaries.
“As a result, Resolution No. 10 of the upcoming annual general meeting (which represents a resolution to re-elect Mr. North as a director of the company) will be withdrawn and will not be voted on by shareholders at the annual general meeting,” the press release states.
It is also reported that Lucio Genovese, chairman of the board, will serve as interim executive chairman and will assume leadership of the group beginning July 1, 2023.
In addition, the Board of Directors announced the appointment of Ferrexpo Chief Financial Officer (CFO) Nikolai Kladiev as executive director of the company, effective at the conclusion of the upcoming annual general meeting of shareholders. Kladiev joined Ferrexpo in 2005 and has been a member of the group’s executive committee since 2007. He was appointed CFO of the group in July 2021.
Lucio Genovese thanked North for his significant contributions to Ferrexpo over the past nine years and for his role in guiding and shaping the group’s strategy since he became chief executive in 2020. “Jim was appointed as CEO at a time when we were focused on accelerating growth, leading Ferrexpo’s decarbonization plans and further cultural development within the business. However, given the situation in Ukraine with the ongoing war and uncertain outlook, we have had to slow down our growth programs, and the CEO’s focus inevitably shifts to ensuring business continuity and operational sustainability,” Genovese said.
Earlier, Fiona MacAulay, a non-executive director of Ferrexpo plc, a British mining company with assets in Ukraine, announced her intention to leave the group after the 2023 annual general meeting in connection with her appointment as a non-executive director of Dowlais Group Plc, which has become a public company. Fiona MacAulay is currently a senior independent director and a non-executive director of the company.
Even earlier, Ferrexpo’s independent non-executive director, Ann-Christin Andersen, declined to run for the company’s next board in May 2023. “Independent non-executive director Ann-Christin Andersen has notified the board that she will not run for re-election at the company’s next annual general meeting in May 2023,” Ferrexpo’s annual report reported.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of Yeristovsky GOK LLC, 100% of Poltava GOK PJSC and 99.9% of Belanovsky GOK LLC.
Fiona MacAulay, a non-executive director of British mining company Ferrexpo plc with assets in Ukraine, due to her appointment as also a non-executive director of Dowlais Group Plc, which became a public company, will leave the group after the 2023 annual shareholders meeting scheduled for May 2.
“Pursuant to Listing Rule 9.6.14R(2), Ferrexpo plc (LSE: FXPO) makes the following notice with respect to Fiona McAuley, senior independent director and non-executive director of the company. In connection with her current appointment as a non-executive director of Dowlais Group Plc, Ms. McAuley has informed the company that Dowlais Group Plc has become a publicly listed company on the London Stock Exchange effective April 20, 2023,” Ferrexpo stated in an announcement on the London Stock Exchange Thursday.
As stated in Ferrexpo’s 2023 annual general meeting notice, Fiona McAuley will step down as non-executive chairman and chairman of the compensation committee following the 2023 annual general meeting scheduled for May 2, 2023.
Earlier, Ferrexpo’s independent non-executive director, Ann-Christin Andersen, declined to run for the company’s next board of directors in May 2023.
“Independent non-executive director Ann-Christin Andersen has notified the board that she will not run for re-election at the company’s next annual general meeting in May 2023,” Ferrexpo’s annual report reported.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of Yeristovsky GOK LLC and 99.9% of Belanovsky GOK LLC. Before the court ruling in September 2022, Ferrexpo also owned 100% of Poltava Mining and Processing Division PJSC.
Mining company Ferrexpo plc with assets in Ukraine produced 901,000 tons of pellets in January-March this year, down 67% from the same period last year.
According to the company’s stock exchange statement on Thursday, the production of pellets in the first quarter of 2023 increased 2.16 times compared with the fourth quarter of 2022 (in October-December last year – 417 thousand tons).
In 2023, only pellets with iron content of 65% were produced.
The total production of commercial products (pellets and iron ore concentrate) for the first quarter of this year decreased by 65% by the first quarter of 2022, but increased 2,1 times to 954 thousand tons by the fourth quarter of 2022. Including commercial concentrate output in January-March 2023 amounted to 53 thousand tons (+32% compared to the previous quarter).
The press release explains that the increase in pellet output in the first quarter of this year was due to the improved power supply, which allowed to restart the second pelletizing line at the end of February 2023. At the same time, the decrease in the group’s production compared to last year is due to operational and logistical constraints since the start of Russia’s full-scale military invasion in February last year.
The company continues to focus on high iron content products.
The Group intends to continue to operate one to two pellet lines in the next quarter, as in the first quarter of 2023, provided there are no further significant changes in the operating environment and logistics availability in Ukraine.
Total iron ore sales were 0.85 million tonnes during January-March 2023 with shipments to European customers by rail and barge.
Ferrexpo CEO Jim North commented that pellet production of 0.9 million tons during the first quarter of 2023 represents a significant increase over the previous quarter and reflects the easing of operational constraints experienced late last year.
“As noted in our recent full year results announcement, we are now able to operate our second pelletizing line (of four) and our logistics networks are able to provide sales volumes to customers in line with this level of demand. Going forward, we aim to balance production volumes with a conservative approach to maintain group balance and liquidity metrics, ensuring stable deliveries to our long-term customers,” North was quoted in the press release.
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% from 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 on the same period last year).
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 a 100% stake in Yeristovsky GOK LLC and a 99.9% stake in Belanovsky GOK LLC. Before the September 2022 court ruling, Ferrexpo also owned 100% of Poltava GOK PJSC.
The mining company Ferrexpo with assets in Ukraine points to the illegality of the revocation of one of the licenses – for the exploration of the Haleshchyna (Kremenchug) deposit of ferruginous quartzites – after the sanctions were imposed on the Belanovsky mining and processing plant (BGOK, Gorishny Plavni, Poltava region), a part of the group.
According to Ferrexpo’s annual report, on June 24, 2021, the official website of the president published a decree enacting the decision of the Rada of National Security and Defense of Ukraine on the application of personal special economic and other restrictive measures and sanctions.
BGOK is included in the list of legal entities subject to sanctions.
“The decree and the decision do not contain legal grounds for the application of sanctions,” the group believes.
At the same time, it is specified that the sanctions revoke the license to develop the Galeshchino deposit, one of the two licenses owned by BGOK.
The company continues to defend its interests in courts. The next court hearing is scheduled for April 3, 2023.
The Galeshchinskoye deposit is at the exploration stage and is located to the north of the group’s active mining operations.
As reported, Ukrainian President Volodymyr Zelensky signed a decree on June 24, 2021, which enacted a decision of the National Security and Defense Council to permanently cancel the licenses of nine mining companies, including BGOK, which is part of Konstantin Zhevago’s Ferrexpo group. The decree cancels the special permit for the use of subsoil resources at the Galeshchynskoe (Kremenchug) iron ore deposit from 2004 to 2036.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrеxpo owns a 100% stake in Yeristovskiy GOK LLC and a 99.9% stake in Belanovskiy GOK LLC. Before the September 2022 court ruling, Ferrexpo also owned 100% of Poltava GOK PJSC.
