Stay competitive: Ferrexpo cuts production costs by 8% in 2023

In 2023 Ferrexpo, the London listed iron ore company with assets in Ukraine, decreased average cash costs of production by 8.2% y-o-y – from $83.3/t to $76.5/t of pellets.

It`s stated in the released Full Year Financial Results for 2023 of Ferrexpo.

Decrease in cash costs was achieved through the implementation of cost-saving initiatives and lower prices for natural gas and diesel fuel. Positive effects were partially offset by higher electricity prices in Ukraine and decreasing production volumes, which resulted in bigger overheads per ton of pellets.

Production reflects the Group’s operating costs for the production of iron ore pellets from its own ore. It is an industry standard measurement, which can be used to assess the relative competitiveness.

Ferrexpo aims to be a low cost producer of iron ore products. Operating with a lower cost base than the Group’s peers, Ferrexpo aims to remain competitive on a global basis. In such way the company can continue to make impact in Ukrainian economy receiving export revenues, paying taxes, and maintaining employment.

As GMK Center reported earlier, in 2023 Ferrexpo invested $101 million. The company remains committed to business development, directing 70% of CAPEX into development projects.

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