Company’s capital expenditures reached 77% of the EBITDA

The London listed iron ore company Ferrexpo with assets in Ukraine invested $101 million in 2023, 37% lower than in 2022, that considered projects initiated pre-war.

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

The company remains committed to business development, directing 70% of CAPEX into development projects, despite the war. The Wave 1 Expansion Program, to increase the production capacity by 3 million tons of pellets per year, continues to be analysed for implementation after the war ends.

Ferrexpo`s CAPEX reached 77% of the EBITDA in 2023. From the IPO in 2007 to the end of 2023, Ferrexpo invested $3.4 billion into the economy of Ukraine.

Despite the ongoing war, various capital expenditure projects aimed at improving product quality and efficiencies advanced in 2023:

  • $22 million – stripping activities for future production growth;
  • $22 million – the concentrator and pelletiser projects as part of the Wave 1 Expansion Programme to manage previously entered commitments;
  • $13 million – the enhancement of the Group’s press filtration complex, which will help raise pelletising capacity in the near term once operations return to full capacity;
  • $3 million – the development and exploration of the Belanovo deposit;
  • $1 million – hydrolysis plant for the trial of hydrogen use as a fuel in the Group’s pelletiser.

As previously reported, Ferrexpo plans to build a new solar power plant with a capacity of 10.8 MW for operation needs.

Ferrexpo is one of the largest investors in the Ukrainian economy with an average share of 2.5% in the total industrial CAPEX in 2007-2022, according to GMK Center calculations.