Ferrexpo reported the company’s production report for the first quarter of 2022 leading the iron ore miner’s shares to gain 8% to 181p in early morning trade on Friday.
Ferrexpo had a total iron ore pellet output of 2.7m tonnes in the first quarter of 2022, down 11% from Q4 2021 due to operational and logistical restrictions resulting from Russia’s invasion of Ukraine, which is ongoing.
The group’s output continues to be fully composed of high-grade iron ore, with a Fe content of 65% or more.
Ferrexpo scaled its production efforts to satisfy accessible pellet demand in Q1 2022, resulting in sales of 2.6m tonnes.
The group’s logistics routes to Europe through rail and barge remain open, however, operations at the Black Sea port of Pivdennyi remain halted.
As of 31 March 2022, Ferrexpo had a net cash position of roughly $159m, with consistently available financing lines having a minor influence on the debt position.
The group has managed to maintain an acceptable liquidity balance between offshore and onshore funds, ensuring that payments for the group’s staff, operations, and tax obligations are completely paid on schedule.
Ferrexpo’s top focus continues to be the safety of its employees.
The miner will continue to produce and transport its goods in compliance with the Government of Ukraine’s call for economic operations to continue as long as the capability continues and it is safe to do so.
Jim North, Chief Executive Officer, Ferrexpo said, “The safety of our workforce remains our highest priority.”
“Our operations and local communities are outside the main conflict zones within Ukraine, enabling us to continue our activities, including the delivery of iron ore pellets to customers in Europe via rail and barge, which have historically represented approximately 50% of sales.”
“The port of Pivdennyi in southwest Ukraine, where the Group’s berth is located, remains closed, and we are reviewing alternative methods of delivering our products to seaborne markets.”