Ferrexpo posts record production of premium iron ore pellets
Iron miner Ferrexpo said on Friday that pellet production grew in the second quarter and in the first half as it reached record production of premium 65% iron ore pellets, which made up 89% of volumes.
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The company said that out of total production, higher-grade 65% iron ore pellets were up 92.6% from last year at 5.1m tonnes from 2.6m tonnes, while lower-grade 62% iron pellet production was down 72.4% at 756,000 tonnes from 2.7m tonnes.
Total pellet production for the first half was up 8.3% at 5.8m tonnes, compared with 5.4m tonnes the previous year.
Numis Securities said the second-quarter production figures were in line with expectations.
“All looks on track for our forecast 11.6m tonnes this year. We remain cautious although we expect Ferrexpo to generate free cash flow this year, helped by its low cost base, pellet premium and bottoming out iron ore prices,” it said.