12th Jan 2021 10:05
(Alliance News) - Ferrexpo PLC on Tuesday said iron ore pellet production was sharply higher in the final quarter of 2020 after the successful ramp up of its concentrator expansion project.
The Baar, Switzerland-based miner, with assets in Ukraine, reported a 24% quarter-on-quarter rise in total iron ore pellet production for the fourth quarter of 2020 to 3.1 million tonnes from 2.5 million tonnes in the third.
Ferrexpo credited this quarterly improvement to the ramp up of its concentrator expansion project. In its third quarter production report, posted October 6, the company said it had completed an additional concentrator section and that commissioning and ramp up of the additional processing capacity would progress in the fourth quarter.
For 2020 as a whole, iron ore pellet production climbed 6.7% to 11.2 million tonnes from 10.5 million tonnes. The production of high quality 65% iron and 67% iron pellets represented 99% of total 2020 production compared to 96% in 2019.
Additionally, total sales volume for 2020 was 12.1 million tonnes, an 18% year-on-year rise.
In terms of Covid-19, the company said its operations and logistics continued operating with minimal fourth quarter impact in 2020.
As at December 31, Ferrexpo's net cash position was around USD4 million, compared to a net debt position of USD282 million at the end of 2019, after a "strong financial and operational performance in 2020".
At the end of December, the company's cash balance was around USD270 million, up from USD131 million the prior year.
Shares in Ferrexpo were up 1.7% at 344.80 pence on Tuesday morning in London.
By Anna Farley; [email protected]
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