9th Jan 2017 07:51
LONDON (Alliance News) - Ferrexpo PLC on Monday said its iron-ore pellet production fell in 2016 year-on-year but sales rose, as did its average selling price.
Ferrexpo said it produced 11.2 million tonnes of iron-ore pellets in the year to the end of December, down from 11.7 million in 2015. The decline in production was caused by refurbishment work on its pelletiser and a decrease in production from low-margin third-party concentrate.
Sales rose to 11.7 million tonnes from 11.3 million tonnes year-on-year, driven by good demand. The average sales price rose to USD58.50 a tonne from USD55.50 a tonne a year before, underpinned by a steady improvement in pellet prices throughout the year.
Average 2016 cash costs of production also declined, down to USD29.00 a tonne from USD31.90 a tonne in 2015.
Ferrexpo said its 2016 was focused on trimming debt levels and, having successfully improved its capital structure, it expects to benefit in 2017 from higher pellet premiums and from its stronger operational performance.
By Sam Unsted; [email protected]; @SamUAtAlliance
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