Ferrexpo daily pellet output inches up 2% m/m in December

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 847 kt of pellets in December, which amounts to 27.3 kt per
day, a 2.2% m/m increase, according to Concorde Capital’s analysis of the
company’s 4Q19 production report released on Jan. 13.

In 2019, Ferrexpo’s pellet output amounted to 10.52
mmt (28.8 kt per day), 0.8% less yoy.

Ferrexpo also reported that its 2019 sales volume was
approximately 10.3 mmt, a 0.7% gain yoy. The average 2019 realized price was
16% higher yoy, and the C1 cash costs of production rose to USD 48/t,
approximately 11% more yoy.

The company’s end-2019 net debt was USD 282 mln, and
the cash balance was USD 131 mln.

Dmytro Khoroshun: We estimate
Ferrexpo’s 2019 EBITDA to amount to USD 590-610 mln, or 17-21% more yoy.
Correspondingly, the 2H19 EBITDA should amount to USD 220-240 mln, 36-41% less
than in 1H19.

Previously, Ferrexpo reported plans to boost its
production volume to more than 11 mmt in 2020,
or at least 4-5% more yoy.