5th Apr 2016 07:20
LONDON (Alliance News) - Ferrexpo PLC on Tuesday said production in the first quarter of 2016 experienced a minor drop from the strong production levels reported in the final quarter of last year.
The iron ore pellet producer reported production in the fourth quarter of 2015 of just under 3.0 million tonnes, which helped push full year production up to a record level, but said production in the first quarter of 2016 declined by 3.3% to under 2.9 million tonnes.
That 2.9 million tonnes is also flat from what was produced in the first quarter of 2015.
Ferrexpo added that production of higher quality 65% iron ore pellets in the first quarter of 2016 was 13% higher than in the previous year, but 2.3% lower than in the previous quarter.
Back in March, Ferrexpo revealed that it produced a record level of iron ore pellets in 2015 amounting to 11.7 million tonnes, but the dramatic fall in prices offset that production growth and led annual pretax profit to drop down to USD25.4 million from USD254.3 million in 2014 following a material revenue drop.
Ferrexpo has warned prices would remain subdued in 2016, and potentially under pressure until 2020.
Ferrexpo shares were down 2.0% to 25.00 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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