Ferrexpo sees 'material rise' in H1 earnings
Miner says charity probe ongoing, no 'conclusive' evidence so far
Iron ore pellet producer Ferrexpo on Friday said group first half underlying earnings were expected to increase “materially”, due to higher prices and sales.
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The company said that while average production costs were likely to rise year on year, inflation had been lower than expected due to a fall in the Brent oil price and the European gas price partially offset by an appreciation of the Ukrainian hryvnia against the dollar.
Chairman Steve Lucas said the review into how Ferrexpo's donations to a third party charity in Ukraine were used "remains ongoing", adding that no evidence of wrongdoing had been found.
Deloitte quit as Ferrexpo's auditor in April after saying it was unable to conclude whether Ferrexpo chief executive and majority shareholder, Ukrainian billionaire Kostyantin Zhevago, controlled the charity.
Ferrexpo at the time said some funds it donated to its charity partner in Ukraine, Blooming Land, could have been "misappropriated" as previously indicated by findings of an ongoing independent investigation.
Lucas said the company would make an announcement to shareholders when the independent review committee completes its work.
"To date, after a significant amount of work on the part of our forensic accountants and legal advisors, there has been no conclusive evidence of any wrongdoing," he said