Annual production surges at Ferrexpo, shares jump

The London-listed Ukrainian iron ore producer said total commercial production surged 66% in the 12 months to December end, to 6.89m tonnes.

Total pellet production was 6.07m tonnes, up 58%.

Lucio Genovese, interim executive chair, said: "In the challenging circumstances, it is pleasing to reporting a strong increase in production for 2022 - our best annual production performance since the start of the full-scale invasion in 2022.

"The higher production reflects our ability to access Ukrainian Black Sea ports again and resume exports to customers in Middle East and north Africa and Asia."

A total of 37 ocean-going vessels were loaded during the year, compared to just 19 in 2023.

The firm, which re-joined the FTSE 250 last month, also said net cash was around $99m at the year end, down slightly on the $108m recorded a year previously. It has no debt.

However, Genovese acknowledged that both the war and lower iron ore prices continued to impact the business.

He said: "The continued effects of lower iron ore prices and higher input costs put pressure on our margins during the fourth quarter.

"Due to further attacks on Ukraine’s energy grid, we are still required to import at higher tariffs electricity from the European Union."

He also paid respects to the ten colleagues who were killed during the year, as well as the 700 Ferrexpo employees currently serving in the Ukrainian army.

As at 0900 GMT, shares in Ferrexpo - which will post full-year results on 12 March - were up 6% at 98.15p.