Ferrexpo to pay special dividend in January

Ferrexpo announced a special dividend of 3.3 US cents per share on Thursday, following the payment of an interim dividend for the first six months of 2017 of 3.3 US cents per share on 8 September.

The FTSE 250 company said its dividend policy was to pay a base level of sustainable dividends through the commodities cycle of approximately $40m per annum, or 3.3 US cents per half year.

In addition, the board would assess the merits of additional returns to shareholders via special dividends, to be paid from cash flows in excess of the group's needs when taking into account debt repayments and development capital expenditure.

If appropriate, the group said it would target special dividends of approximately $40m per financial year, or a total of 6.6 US cents per share, to be paid at an appropriate time in its reporting cycle.

Ferrexpo said its strategy was to maintain a balance between sustainable and attractive shareholder returns, investment in growth opportunities and balance sheet strength.

“The company has continued to trade strongly since it announced its half-year results on 3 August, and its cash flows have further reduced net debt and funded capital expenditure,” the board said in its announcement on Thursday.

“Together with the strong demand outlook for pellets in 2018, this has given the board confidence to declare this dividend.”

The special dividend would be paid on 15 January to shareholders on the register at the close of business on 15 December.

Ferrexpo confirmed the ex-dividend date would be 14 December, with the dividend to be paid in sterling, with an election to receive in dollars.