Ferrexpo Q4 production up; sees 2019 in line with previous year
Ukraine iron ore producer Ferrexpo said fourth quarter pellet production rose 7.2% to 2.9m tonnes against the third quarter as it forecast 2019 total output to be in line with 2018 as a result of ongoing maintenance.
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The company on Tuesday said 2018 total pellet production was up 1.6% year-on-year to 10.6m tonnes, adding that 2018 sales volumes would be around 10.2m tonnes, down from 2017's 10.5m tonnes, impacted by reduced barge shipments given the low water levels on the Danube River in the second half of 2018.
Slower-than-expected rail shipments in December 2018 and the timing of a capesize shipment falling into January 2019 also impacted sales volumes. The group said it expected these sales volumes to be caught up in the first half of 2019.
Ferrexpo said the average received price was approximately 9% higher in 2018, reflecting stronger premiums for higher quality iron ore, including higher average pellet premiums, offset by a slightly lower average 62% Fe iron ore fines price and higher international freight rates.
Full year average 2018 cash cost of production was expected to increase to about $44 per tonne from $33 due to higher energy prices and increased mining costs.
Net debt as of 31 December 2018 was approximately $340m, down from $403m. The group's cash balance as of 31 December 2018 was approximately $60m while undrawn available debt facilities amounted to $205m.