6th Oct 2020 08:27
(Alliance News) - Ferrexpo PLC on Tuesday reported a drop in third quarter production due to a planned pelletiser maintenance and said its appeal over Ferrexpo Poltava Mining had been dismissed.
Shares in Ferrexpo were down 3.9% at 167.06 pence in London on Tuesday morning.
The Swiss-headquartered iron ore company, with assets in Ukraine, noted its June announcement that a district court in Kyiv had placed a restriction which covered 50.3% of shares in Ferrexpo Poltava Mining held by Ferrexpo AG Switzerland. Ferrexpo AG Switzerland is Ferrexpo Poltava Mining's sole shareholder.
The Kyiv Court of Appeal has dismissed Ferrexpo's appeal against the court order, meaning the restriction remains in place.
Ferrexpo stressed that: "The restriction does not affect ownership of the shares, but prohibits their transfer. Furthermore, Ferrexpo AG has no intention, and never has had any intention, to transfer its shareholding in FPM. Ferrexpo's operations remain unaffected and continue as normal."
The company is considering options with its advisers in terms of further legal action opposing the restriction. A previous restriction was cancelled by the Kyiv Court of Appeal in June 2020.
Separately, Ferrexpo reported its production for the third quarter of 2020, which ended September 30, of 2.5 million tonnes, down from 2.9 million in the second quarter. This drop was attributed to "reduced volume due to planned pelletiser maintenance in early September."
The firm completes an additional concentrator section in the quarter, commissioning and ramp up of which will progress in the fourth quarter.
Production for the first nine months of 2020 was higher, at 8.1 million tonnes from 7.9 million tonnes for the same period of 2019.
"Ferrexpo's operations continued to operate with minimal impact during 3Q 2020 due to the global Covid-19 pandemic. The company continues to ensure all appropriate precautions are being followed for the health and wellbeing of its workforce, including the company's own programmes testing for the Covid-19 virus and associated antibodies," said Ferrexpo.
By Anna Farley; [email protected]
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