22nd Dec 2021 13:01
Ferrexpo PLC - supplies iron ore pellets from Ukraine to steel industry - Declares an interim dividend of 6.6 US cents, bring its total payout for 2021 so far to 46.2 US cents. For all of 2020, Ferrexpo paid 85.8 cents, up from 19.8 cents in 2019.
The latest payout reflects a good performance by the miner in 2021, it says, and a strong outlook for high-grade iron ore pellets, with pellet premiums at elevated levels. Ferrexpo says it expects to transition to a net cash position in 2021, having repaid the remaining balance of its long-term debt facility in June. The company targets a payout of 30% of free cash flow, a policy adopted last month.
"Ferrexpo has long sought to apply a balanced approach to capital allocation, and today's announcement is a continuation of this approach, with the group seeking to provide shareholder returns whilst also investing in organic growth opportunities," explains Interim Chief Executive Officer Jim North.
He adds: "We have seen continued resilience in the premiums paid for high grade iron ore in 2021, as well as elevated pellet premiums, with both factors driven by the global push to decarbonise steel making. With these market factors collectively justifying our long-held strategy to invest in higher-grade iron ore pellet production."
Current stock price: 301.99 pence, up 0.4% on Wednesday
Year-to-date change: up 6.9%
By Tom Waite; [email protected]
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