Ferrexpo plc (LON: FXPO) have today provided the following production and trading update for 2Q 2019.
Summary:
· 2Q 2019 pellet production up 11% to 2.8MT (1Q 2019: 2.5 MT).
· 1H 2019 pellet production up 5% to 5.4MT (1H 2018: 5.1MT).
· FY 2019 production guidance remains at 10.6MT
· 1H 2019 sales volumes expected to increase by approximately 4% to 5.0MT (1H 2018 sales volumes: 4.8MT).
· In 1H 2019, the Group continued to generate strong cash flow due to a 29% increase in the Group’s average received price compared to the average FY 2018 price, reflecting stronger iron ore prices and premiums for iron ore pellets.
· The average C1 cost of production for 1H 2019 is expected to be approximately US$46 per tonne compared to the average FY 2018 C1 cost of US$43 per tonne, this is due to Ukrainian inflation and a strong Hryvnia currency against the US dollar.
· Net debt as of 30 June 2019 was approximately US$277M (31 December 2018: US$339M). Ferrexpo plc’s cash balance as of 30 June 2019 was approximately US$90M while undrawn available debt facilities amounted to US$40M.
| 000′ tonnes | Q2 2019 | Q1 2019 | Change% | YTD 2019 | YTD 2018 | Change% |
| Pellet production from own ore | 2,813.80 | 2,538.70 | 10.8 | 5,352.50 | 5,081.70 | 5.3 |
| – 62% Fe pellets | 107.5 | 107.5 | 0 | 215 | 317.1 | -32.2 |
| – 65% Fe pellets | 2,706.30 | 2,431.20 | 11.3 | 5,137.50 | 4,764.60 | 7.8 |
| Production from third party materials | 0 | 0 | 0 | 14.5 | ||
| – 62% Fe pellets | 0 | 0 | 0 | 0 | ||
| – 65% Fe pellets | 0 | 0 | 0 | 14.5 | ||
| Total Pellets Produced | 2,813.80 | 2,538.70 | 10.8 | 5,352.50 | 5,096.20 | 5 |
| – 62% Fe pellets | 107.5 | 107.5 | 0 | 215 | 317.1 | -32.2 |
| – 65% Fe pellets | 2,706.30 | 2,431.20 | 11.3 | 5,137.50 | 4,779.10 | 7.5 |
