Ferrexpo shrugs off Ukrainian fears with 32pc rise in earnings
UKRAINE-FOCUSED iron ore miner Ferrexpo yesterday bucked geopolitical and pricing concerns with a 32 per cent rise in first-half earnings.
The FTSE 250-quoted firm said higher pellet premiums and an improved marketing performance had partly offset a lower iron ore price, leading to core earnings of $321m (£190m).
Its production costs fell by 23 per cent over the period, due to improvements in efficiency and higher production, alongside devaluation of its currency the Hryvnia against the dollar.
Tensions between Moscow and the West over Russia’s presence in Ukraine came to a head last month when a Malaysian Airlines plane was shot down over Ukraine, allegedly by pro-Russian separatists.
Ferrexpo said that its operations had not been affected by the unrest in the east of the country.
First-half revenue fell two per cent to $759m, but sales volumes rose three per cent to 5.5m tonnes.
The company said it remained on track to increase its pellet volume to 12m tonnes this year.
Shares closed 1.7 per cent lower at 130.1p.