13th Jan 2020 08:47
(Alliance News) - Ferrexpo PLC on Monday said higher commodity prices offset a rise in production costs during 2019.
This, the iron ore pellet maker said, allowed it to continue generating "strong" margins during the year. Prices rose 16% in 2019, compared to a cash cost of production increase of 12%, to USD48 per tonne.
The higher costs, Ferrexpo said, were due to a stronger local currency in Ukraine as well as inflation in the Eastern European country.
Pellet output from Ferrexpo's own ore in 2019 was broadly flat at 10.5 million tonnes, with production of higher-quality pellets up 3% to 10.1 million tonnes. Sales volumes rose marginally, by 1.0%, to 10.3 million tonnes.
Baar, Switzerland-based Ferrexpo had a rocky year in 2019. Ferrexpo has been grappling with an investigation into the use of funds the company gave to Ukrainian charity Blooming Land.
Towards the end of the year, in October, Chief Executive Kostyantin Zhevago temporarily stepped down. Bloomberg earlier that month had said Ukrainian investigators were looking for him over "large-scale" money laundering and embezzlement accusations.
Ferrexpo shares were 2.8% higher on Monday morning in London at a price of 149.62 pence each, half of what they were worth last April.
By George Collard; [email protected]
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