Ferrexpo FY production dragged down by war in Ukraine

Commodity trading and mining company Ferrexpo revealed on Thursday that full-year iron ore production had been dragged down by Russia's war in Ukraine.

Ferrexpo said total pellet and commercial concentrate production for the full year came to 4.15m tonnes, down 33% year-on-year, primarily because the 2022 trading year included a period of full production before the full-scale invasion of Ukraine.

With "variable, yet stable production" from two of its four pelletiser lines in the fourth quarter, total iron ore pellet production was 577,140 tonnes from its own ore, 54% lower than in the Q3 due to logistic constraints and lower market demand in the early part of the quarter.

Ferrexpo added that its group net cash position was approximately $109.0m as of 31 December 2023, broadly flat year-on-year, with minimal lease obligations and no debt.

Interim executive chairman said: "Because our business is adaptive to change, during the quarter we were able to alter our production mix to match our customers' needs and produce high-grade pellets as well as pellet feed, whilst also treating material from a third party.

"In view of the hugely challenging situation that we faced during the past year, I believe that this is an exceptional performance and I am proud of our collective achievements."

As of 0830 GMT, Ferrexpo shares were down 3.74% at 78.45p.

Reporting by Iain Gilbert at Sharecast.com