Ferrexpo Poltava Mining

Ferrexpo Poltava Mining (FPM) specializes in production of iron ore pellets. It is a part of Ferrexpo.

FPM is an integrated company with facilities for mining of crude ore to production of iron ore pellets. The company processes iron ore and manufactures iron ore concentrate and pellets at crushing and benefication plants and iron ore pellets shop.

Iron ore is mined by the open-pit method at Gorishne-Plavninske-Lavrykivske deposit (reserves of ferruginous quartzite exceed 1 billion tons). According to the international classification JORC, the company’s proved and estimated reserves reach 703 million tons.

FPM buys part of iron ore concentrate for production of pellets from third-party companies, since its beneficiation capacity is not enough to fully meet its own needs for iron ore concentrate. Also, FPM processes iron ore extracted at Ferrexpo Yeristovo Mining according to a give-and-take model.

All pellets produced by FPM are exported.

Location: Gorishni Plavni, Poltava oblast, Ukraine

Shareholders: Ferrexpo

Markets: Austria, Germany, Slovakia

Products: Iron ore pellets

Production capacity

Iron ore mining 28,000 thousand tons

Iron ore beneficiation 13,000 thousand tons

Manufacture of iron ore pellets 12,000 thousand tons

Staff and wages

Number of employees 7507

Average wage* UAH 177,000 per annum

_{* per worker before taxes}

Charts and tables

Production results, thousand tons

300002500020000150001000050000

2012

2013

2014

2015

2016

2017

2018

2019

2020

20000150001000050000

2012

2013

2014

2015

2016

2017

2018

2019

2020

20000150001000050000

2012

2013

2014

2015

2016

2017

2018

2019

2020

Indicative sales structure by products in 2020*

Indicative sales structure by markets in 2020*

China
Austria
Germany

Turkey
Other

_{* structure of sales volumes, metric tons}

Financial performance, $ million

	2013	2014	2015	2016	2017	2018	2019	2020
Sales	1053	991	687	662	766	826	993	1287
EBITDA	212	290	-15	186	319	290	340	667
EBITDA margin	20.1%	29.3%	-2.2%	28.1%	41.7%	35.13%	34.2%	51.8%
Net income	47	-146	-271	-2	160	193	272	411
Net income margin	4.5%	-14.7%	-39.4%	-0.2%	20.9%	23.30%	27.4%	31.9%
CAPEX	188	148	39	39	74	83	191	n/a

Key facts

2019

Poltava Mining increased its authorized capital by 62.3% or by ₴1.185 billion.

Ferrexpo currently holds 100% of shares in Poltava GOK. The Group bought shares from minority shareholders using «squeezed out» procedure.

Poltava Mining is to invest $34 million in the construction of a closed warehouse for iron ore concentrate. The project will be implemented in 2019–2020 to ultimately increase pellet production by 1.5 million tons in 2021.

FPM plans to produce 10.6 million tons of pellets from its own iron ore and iron ore mined at Ferrexpo Yeristovo Mining. 9.88 million tons of 65% Fe pellets are planned to be produced in 2019.

2020

Poltava Mining is preparing a project to increase production to 24 million t. Expected project implementation period – 5-8 years.

Poltava Mining to invest $34 million in a concentrate stockyard.

Sources: websites of the companies, media outlets