Ferrexpo invested $55 million in production facilities in the first half of the year

Maintenance and modernization costs amounted to $19 million, and strategic development projects – $36 million

Ferrexpo, an iron ore company with assets in Ukraine that is listed on the London Stock Exchange, invested $55 million in production facilities in January-June 2024. This is stated in the company’s report.

Maintenance and modernization costs amounted to $19 million, and strategic development projects – $36 million.

“The level of the group’s current capital expenditures depends on operational and logistical constraints due to the ongoing war in Ukraine. Taking into account cash flow generation and market prospects until the end of 2024, the group has revised the level of its investments in capital support projects to optimize the level and timing of repairs,” Ferrexpo said.

Investments in strategic development plans have also been revised, especially in projects that are expected to generate profits in the medium and long term.

Investments in major projects in the first half of 2024 include $17 million to modernize the press-filtration complex, which will help increase pellet production capacity in the near future, once production returns to full capacity, and further improve the quality of pellets produced.

In addition, Ferrexpo continued to invest $10 million in the concentrator and pelletizing plant projects as part of the first wave of expansion, and $2 million in stripping works for future production growth. Further expenditures of $1 million are related to the development and exploration of the Belanovo deposit and $1 million for a hydrolysis plant to test the use of hydrogen as a fuel for pelletizing.

As GMK Center reported earlier, in 1H2024, Ferrexpo increased pellet production by 76% compared to 1H2023, to 3.297 million tons.

During the period, the company produced 2.836 million tons of premium pellets from its own concentrate (65% iron content), up 55% compared to July-December 2023. Another 298.46 thousand tons of pellets (65% iron content) were produced from third-party concentrate (+498% compared to H2 2023). The company also produced 162.64 kt of DR pellets (not produced in July-December 2023).

The company’s net profit for the period doubled to $55 million compared to January-June 2023. The company’s revenue for 6 months amounted to $549 million, up 64% y/y. Sales of products increased by 85% y/y – to 3.8 million tons, of which 1.8 million tons were exported through Ukrainian seaports.

Ferrexpo is an iron ore company with assets in Ukraine that is listed on the London Stock Exchange. It produces and exports high-quality iron ore pellets for steel production. Its production assets are Poltava and Yeristovo Mining (100% owned each). The company is also developing Belanovo Mining.