Lower prices hit Ferrexpo

PRE-TAX profit at iron ore producer Ferrexpo tumbled 57.1 per cent over the first nine months of last year, it said yesterday.

Profits sank to $228.8m (£144.8m), down from $533.6m over the first nine months of 2011, on the back of lower sales volumes and lower iron ore prices.

Sales fell to 7m tonnes of pellets over the period, down from 7.2m pellets the previous year, while the average iron fines price sank to $131 a tonne from $177 a tonne over the nine months of 2011, Ferrexpo said.

It also said it is looking at a potential US dollar-denominated senior unsecured Eurobond issue.

Shares closed down 5.48 per cent.