17th Oct 2013 08:03
LONDON (Alliance News) - Ferrexpo PLC Thursday said that production increased in its third quarter but its sales price was down on its yearly average.
The iron ore pellet production company with operations in Ukraine, said it increased its total pellet production 3.7% to 2.8 million tonnes for the three months ended Sept 30 from 2.7 million tonnes in the previous three months, with its 62%-iron-ore-pellet production up 1.3% and its 65%-production up 7%.
The company, which also receives a small amount of iron ore pellets from third parties, said production from its own ore increased 3.2% in the three months as more pellets were received from its Yeristovo mine, as the Ukrainian mine continues to ramp up.
Ferrexpo said its average realised sales price for its pellets was 4.5% lower due to problems related to fixed-price settlements, but said sales volumes were increasing due to the use of its wholly owned transhipment vessel, which was loaded with 200,000 tonnes of pellets in September.
The company also said that the group's average cash costs for the three months was USD58.2 per tonne, which was down on its yearly average of USD60.6 per tonne, and the company said it expects further reductions as the Yeristovo mining site continues to ramp up.
Ferrexpo shares were down 1.5% to 191.20 pence in early trading Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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