8th Jan 2019 08:23
LONDON (Alliance News) - Swiss-based, Ukraine-focused mining company Ferrexpo PLC said on Tuesday its iron-ore pellet production rose in 2018; however sales saw a slight fall due to reduced shipments.
Ferrexpo said it produced 10.5 million tonnes of iron oil pellets in the year to the end of December, up from 10.4 million tonnes in 2017.
For 2019, the company expects pellet production to edge up to 10.6 million tonnes, despite being limited by ongoing maintenance.
Sales volumes however, declined to 10.2 million tonnes from 10.5 million tonnes in 2017 as a result of reduced shipments, caused by low water levels on the Danube River in Germany in the second half of the year. There also was slower-than-expected shipments in December.
However, Ferrexpo expects sales volumes to rise in the first half of 2019.
The average received price for the year rose by 9%, reflecting higher average pellet premiums, despite a lower iron ore fines price.
However, average cash cost of production was USD44 per tonnes, up 33% from USD33 the prior year, due to higher energy prices and mining costs.
Shares in Ferrexpo were up 0.7% at 200.80 pence on Tuesday.
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