Exclusive Ferrexpo maintains capital expenditures at $102 mln in 2024

Despite the war, the company continued investing in strategic projects during 2024

In 2024 capital expenditures of Ferrexpo, the London-listed iron ore producer with operations in Ukraine, reached $102 mln remaining on the same level as in 2023. It is stated in the company’s report with full year financial results.

36% of CAPEX was dedicated to maintenance purposes: sustaining capital expenditures amounted to $37 mln (+19.3% y/y). The increase compared to 2023 reflects the backlog of certain sustaining capital expenditures that have been postponed since the beginning of the war.

Investments in strategic development projects reached $65 mln, that is 7.1% less than in 2023. Larger strategic investments included funds for the new press filtration complex ($24 mln) and a new concentrate conveyer line along the production circuit ($2 mln). These investments will allow Ferrexpo to increase production once the operation returns to full capacity and to produce iron ore concentrates and pellets at the same time removing the restriction on their simultaneous production.

Ferrexpo also spent $9 mln (-59.0% y/y) on stripping activities for future production growth and $18 mln (-18.1% y/y) on the concentrator and pelletizer projects as part of the Wave 1 Expansion Programme aimed at increasing pellets production capacity by 3 mln tons per year.

As GMK Center reported earlier, Ferrexpo is among the top 10 largest Ukrainian investors in the wartime according to NV’s “Leaders. Who and how much invests in business development during the war”. The company’s investments over the two and a half years of war are estimated at $317 mln. Ferrexpo is ranked second among the mining and metals companies and sixth overall.