Ferrexpo PLC — Earnings Release 2017

Jan 9, 2018

National Storage Mechanism | Additional information

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RNS Number : 3212B

Ferrexpo PLC

09 January 2018

9 January 2018

Ferrexpo plc

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

4Q 2017 Pellet Production and Trading Update

2017 trading summary:

·   Total 2017 pellet production 10.4 MT compared to 11.2 MT in 2016 reflecting planned pelletiser maintenance.

·   4Q 2017 production increased 12% compared to 3Q 2017.

·   Production of high quality 65% Fe pellets represented 95% of total production levels compared to 94% in 2016.

·   2017 sales volumes approximately 10.4 MT compared to 11.7 MT in 2016 due to production levels.

·   The Group's average received price in 2017 increased significantly compared to 2016, reflecting a 22% increase in the average 62% Fe iron ore fines price and a notable increase in the pellet premium due to strong demand for high quality iron ore products including pellet.

·   The full year average 2017 cash cost of production was approximately US$33 per tonne compared to US$29 per tonne in 2016 due to higher commodity prices impacting input costs, local inflation and lower production levels.

·   The Group's available liquidity (including a new undrawn PXF facility of US$195M) as of 31 December 2017 was circa US$310M compared to US$145M as of 31 December 2016.

·   Net debt as of 31 December 2017 was approximately US$400M compared to US$589M as of 31 December 2016 and is at its lowest level since 2011.

4Q 2017 pellet production:

000' tonnes	Q4 2017	Q3  2017	Change		YTD 2017	YTD 2016	Change
%	%
Pellet production from own ore	2,763.18	2,492.70	10.9		10,394.44	11,057.61	-6.0
- 62% Fe FBP	144.20	156.60	-7.9		558.70	656.60	-14.9
- 65% Fe FPP (incl FPP+)	2,618.98	2,336.10	12.1		9,835.74	10,401.01	-5.4
Production from third party materials	28.02	0.00	-		49.56	142.99	-65.3
- 62% Fe FBP	0.00	0.00	-		0.00	9.00	-100.0
- 65% Fe FPP	28.02	0.00	n/a		49.56	133.99	-63.0
Total Pellets Produced	2,791.20	2,492.70	12.0		10,444.00	11,200.60	-6.8
- 62% Fe FBP	144.20	156.60	-7.9		558.70	665.60	-16.1
- 65% Fe FPP (incl FPP+)	2,647.00	2,336.10	13.3		9,885.30	10,535.00	-6.2
of which % of FPP (incl. FPP+)	95%	94%			95%	94%

Note: Ferrexpo Basic Pellets (FBP), Ferrexpo Premium Pellets (FPP) and Ferrexpo Premium Pellets plus (FPP+).

For further information contact:

Ferrexpo:

Investor Relations and Corporate Communications

Ingrid McMahon                                                                  +44 207 389 8304

Maitland PR:

James Isola                                                                          +44 207 379 5151

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 35 years. Ferrexpo's resource base is one of the largest iron ore deposits in the world. The Group is currently the 3rd largest exporter of pellets to the global steel industry and the largest exporter of pellets from the Former Soviet Union. In 2016, it produced 11.2 million tonnes of pellets reflecting a 2% increase in production of the Group's highest quality pellets to a record 10.5 million tonnes. Ferrexpo has a diversified customer base supplying steel mills in Austria, Slovakia, the Czech Republic, Germany and other European states, as well as in China, India, Japan, Taiwan and South Korea. Ferrexpo is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information, please visit www.ferrexpo.com

This information is provided by RNS

The company news service from the London Stock Exchange

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