Ferrexpo PLC

Earnings Release • Jan 13, 2020

National Storage Mechanism | Additional information

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RNS Number : 5014Z

Ferrexpo PLC

13 January 2020

13 January 2020

Ferrexpo plc

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

Trading Update and 2019 Pellet Production

2019 trading summary:

·   Ferrexpo continued to generate strong margins in 2019 as higher realised prices of approximately 16% offset an increase in the Group's C1 cash cost of production to c. US$48 per tonne (2018: US$43 per tonne). The cost increase was primarily driven by a strong local currency and domestic inflation.

·   2019 pellet production from own ore 10,519kt (2018: 10,506kt).

·   Production of high quality 65% Fe pellets from own ore up 3% in 2019 to 10,116kt (2018: 9,824kt).

·   Refurbishment of pelletising line number 2 completed in 4Q 2019. This is the final line refurbishment of the programme started in 2014.

·   2019 sales volumes approximately 10,300kt (2018:10,227kt).

·   Net debt as of 31 December 2019 was approximately US$282M (31 December 2018: US$340M). The Group's cash balance as of 31 December 2019 was approximately US$131M (31 December 2018: US$62M).

·   As announced on 2 January 2020, the Group declared an interim special dividend of 6.6 US cents payable on 17 January 2020. This special interim dividend reflects the Group's strong cash generation ability and the Board's strategy to maintain a balance between sustainable and attractive shareholder returns, investment in growth opportunities and balance sheet strength.

2019 Pellet Production

000' tonnes	Q4 2019	Q3  2019	Change		YTD 2019	YTD 2018	Change
%	%
Pellet production from own ore	2,627.56	2,538.89	3.5		10,518.95	10,506.16	0.1
- 62% Fe pellets	91.84	95.99	-4.3		402.83	682.49	-41.0
- 65% Fe pellets	2,535.72	2,442.90	3.8		10,116.12	9,823.67	3.0
Production from third party materials	0.00	0.00			0.00	101.00
- 62% Fe pellets	0.00	0.00			0.00	0.00
- 65% Fe pellets	0.00	0.00			0.00	101.00
Total Pellets Produced	2,627.56	2,538.89	3.5		10,518.95	10,607.16	-0.8
- 62% Fe pellets	91.84	95.99	-4.3		402.83	682.49	-41.0
- 65% Fe pellets	2,535.72	2,442.90	3.8		10,116.12	9,924.67	1.9

For further information contact:

Ferrexpo:
Ingrid McMahon	+44 207 389 8304
Maitland/AMO:
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 40 years. In 2019, the Group produced 10.5 million tonnes of pellets ranking it as the 3rd largest exporter of pellets to the global steel industry with a market share of approximately 9%. Ferrexpo has a diversified customer base supplying steel mills in Austria, Germany, Japan, South Korea, Taiwan, China, Slovakia, the Czech Republic, Turkey, Vietnam and America. Ferrexpo has a premium listing on the main market of the London Stock Exchange. Since its IPO in 2007, the Group has paid approximately US$658 million in dividends to shareholders, invested over US$2.4 billion of capital into its operations and paid US$761 million in taxes and royalties to the Ukrainian government. For further information, please visit www.ferrexpo.com

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