Ferrexpo iron ore pellet production slumps in Q4

Iron ore company Ferrexpo said on Wednesday that iron ore pellet production had crashed in the fourth and final quarter of the group's trading year amid the ongoing conflict in Ukraine.

Ferrexpo stated total iron ore pellet production dropped to 400,000 tonnes in Q4, down from 3.1m tonnes 12 months earlier, primarily due to the loss of electrical power for the majority of the quarter, which was partially restored in late December, as well as existing constraints relating to Russia's invasion.

Full-year pellet production of 6.1m tonnes in 2022 was down 46% year-on-year, reflecting operational and logistical constraints throughout the year due to the war in Ukraine.

The FTSE 250-listed group added that total full-year pellet sales had also slumped 46% to 6.2m tonnes as a result of Ukraine's access to the Black Sea, Russian attacks on Ukraine's state-owned electricity network, and logistics constraints for users of Ukraine's railway network.

Chief executive Jim North said: "The past year has been an exceptionally difficult year for anyone connected to Ukraine. After more than 320 days of conflict, however, Ukraine continues to successfully defend itself.

"Our full-year pellet production of 6.1m tonnes reflects both the determination of our workforce, and the strong and supportive relationships that we have with our stakeholders, such as our global customer network and local government. We hope that the coming year will bring peace, and we look forward to being a part of the process to deliver a new future for our people, their families, and communities across Ukraine."

As of 0830 GMT, Ferrexpo shares were down 2.30% at 173.70p.

Reporting by Iain Gilbert at Sharecast.com