8th Apr 2014 07:03
LONDON (Alliance News) - Ferrexpo PLC Tuesday said it increased its proportion of higher grades and pellet production from both its own ore and from third party materials in the first quarter of 2014.
The iron ore producer, which operates solely in Ukraine, said its total production increased 10% to 2.8 million tonnes in the three months ended March 31 from 2.6 million tonnes in the same period the previous year.
The company said its total group production increased 9.2% to 2.7 million tonnes from 2.5 million tonnes, as its Yeristovo Mining site more than doubled its production to 706,700 tonnes from 328,100 tonnes, offsetting a 7.0% fall in production from its Poltava Mining site to 2.0 million tonnes from 2.2 million tonnes.
Ferrexpo also said its iron-ore pellets coming from third parties also increased 55% to 102,000 tonnes from 65,700 tonnes during the period.
The company added that its proportion of higher grade pellets produced overall also increased by 31% to 1.4 million tonnes from 1.0 million tonnes, due to a significant increase in 65% iron at its Yeristovo site.
The news comes a month after the company said its pretax profit increased in 2013 due to strong revenues and said there were currently no disruptions to its operations in Ukraine despite the ongoing political upheaval in the country.
The company said its pretax profit increased 15% to USD305.4 million in 2013 from USD265.7 million in 2012, as revenues increased 11% to USD1.58 billion from USD1.42 billion.
Ferrexpo, which operates mainly in the Poltava region on the Dnieper river in Ukraine, said in March that its operations were still operating as usual following the change of leadership in the country and ongoing crisis in the Crimea region.
At the time, the company noted that a 16% devaluation of the Ukrainian hryvnia will reduce its operating costs but that this also is likely to lower the carrying value of its assets and liabilities.
By Tom McIvor; [email protected]; @TomMcIvor1
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