Ferrexpo pellet output drops 7% yoy in 2017
Pellet production at the iron ore miner and pellet producer Ferrexpo (FXPO LN, FXPOLN) was down by 6.8% yoy at 10.444 mmt, the company reported in a quarterly trading update published on Jan. 9.
Ferrexpo also disclosed that its net debt amounted to approximately USD 400 mln as of Dec. 31, and that the recently-signed USD 195 mln PXF facility remained undrawn as of the end of 2017. The company’s available liquidity, including the undrawn PXF, stood at approximately USD 310 mln.
Dmytro Khoroshun: Ferrexpo’s 2018 debt repayments amount to approximately USD 300 mln, including USD 173 mln of Eurobonds on Apr. 7, and are well covered by the company’s available liquidity. Pellet premiums and base iron ore prices remain strong in the beginning of 2018, which promises another strong year for Ferrexpo. This means that the second Eurobond principal repayment of USD 173 mln in April 2019 is feasible with very little additional financing. We retain our neutral view on Ferrexpo Eurobonds.