7th Oct 2014 06:56
LONDON (Alliance News) - Ferrexpo PLC Tuesday said it has increased iron pellet production from its two open pit mines and processing facility in the Poltava region of Ukraine as iron ore prices continue to fall.
For the nine months ended September 30, Ferrexpo increased pellet production from its own ore by 3.7% to 8.1 million tonnes from 7.8 million tonnes in the same period in 2013.
Total pellet production, including ore from third parties, increased 2.6% to 8.3 million tonnes for the nine months ended September 30, compared to 8 million tonnes in the comparable period in 2013.
Sales volumes of iron ore pellets for the nine months to September 30, were 8.2 million tonnes which represented an increase of 8% compared to the same period in 2013.
The average Platts benchmark price for iron ore declined by 12% in the third-quarter compared to the second-quarter, to USD90 per tonne, with the company's prices declining in line with the market, said Ferrexpo.
"The group has substantially completed its projects to increase output to 12 million tonnes per year and improve the quality of all pellets to 65% iron. In the current low priced iron ore market environment, new growth capital expenditure will be reduced and will focus on high return quick payback projects in order to maintain the strength of the balance sheet," said the company in a statement.
The company currently produces pellets with a 62% iron grade, and 65% iron grade, both making up around half of total production each.
Ferrexpo shares were quoted at 103.00 pence per share at the close of Monday.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Ferrexpo