Ferrexpo doubles iron ore pellet output in Q1

MOSCOW. April 23 (Interfax) - Mining company Ferrexpo plc, with assets in Ukraine, produced 1.814 million tonnes of iron ore pellets in Q1 2024, twice as much as in the same period of last year and three times more than in the previous quarter, Ukrainian media reported, quoting a Ferrexpo press release.

"Our operations have delivered an exceptional first quarter performance, with a 203% increase in total production compared to the previous quarter, to over 2 million tonnes of iron ore pellets and concentrate," Lucio Genovese, Ferrexpo Executive Chair, was quoted as saying.

Total commercial production (pellets and iron ore concentrate) rose 2.1-fold year-on-year and was three times higher quarter-on-quarter at 2.054 million tonnes, with concentrate output rising to 241,000 tonnes from 53,000 tonnes a year ago and 50,000 tonnes in Q4 2023.

Genovese said that during Q1, Ferrexpo was once again able to export from Ukrainian ports, allowing it to export larger volumes to Europe and resume sales to MENA and Asian customers.

The Group operated two, sometimes three pelletizing lines (out of four) during the quarter, alternating product quality depending on demand from customers and expanded logistics capacity.

Total sales volumes for the quarter totaled 1.992 million tonnes, consisting solely of products grading 65% Fe or above.

Ferrexpo reduced pellet production 36.5% in 2023 to 3.845 million tonnes.

Ferrexpo owns 100% Yeristovo Mining and Poltava Mining and 99.9% of Belanovo Mining.

Ferrexpo had a net loss of $84.8 million in 2023, compared with profit of $220 million in 2022. Revenue fell to $651.8 million in 2023 and EBITDA fell 83% to $130.2 million.