12th Jan 2022 10:06
(Alliance News) - Ferrexpo PLC on Wednesday said it significantly improved its cash position as pellet production increased in the final quarter of 2021, reaching its annual target run rate.
The Switzerland-based commodity trading and mining company said iron ore pellet production increased 18% quarter-on-quarter to 3.1 million tonnes in the final quarter of 2021.
Full-year production of iron ore pellets was 11.2 million tonnes, unchanged from 2020, with 100% of pellet production comprised of high-grade forms of iron ore.
Annual sales volume essentially matched production at 11.3 million tonnes. Ferrexpo said this represented a 6% decrease from the year before, as a result of a stockpile drawdown process completed in 2020.
Shipments of commercial concentrate totalled 234,000 tonnes in 2021, up 28% from 183,000 tonnes in 2020.
Ferrexpo's net cash position stood at USD117 million on December 31, up significantly from USD4 million at the end of 2020. The company said this balance sheet strength reflected its investments in high-grade iron ore production and strong market demand.
Interim Chief Executive Jim North said: "Drawing 2021 to a close, we are proud to report a strong end to the year, with over three million tonnes of pellets produced in the final quarter, and achieving our target run rate for pellet production of over 12 million tonnes. With the successful completion of a number of pelletiser upgrades, we are now in a strong position to grow our production base in the year ahead, both in terms of production volumes and product grades, with a positive outlook ahead for premium grade iron ore pellets."
Shares in Ferrexpo were up 3.1% at 312.20 pence on Wednesday morning in London.
By Heather Rydings; [email protected]
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