Ferrexpo daily pellet output adds 2% m/m in December

Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 1,040 kt of pellets in December, which amounts to 33.5 kt
per day, or a 2.2% m/m rise, according to Concorde Capital’s analysis of the
company’s 4Q21 production report released on Jan. 12.

In 2021, Ferrexpo’s total pellet output amounted to
11.22 mmt (30.7 kt per day), unchanged yoy. Output of direct reduction pellets
rose 27% yoy to 431 kt and production of commercial iron ore concentrate added
28% yoy to 234 kt.

At the end of 2021, Ferrexpo achieved its target run rate
of over 12 mmt per year of pellets, the report said citing CEO Jim North,
adding that the company is in a strong position to grow its production volume
in the year ahead.

Ferrexpo’s net cash position was USD 117 mln at
end-2021, according to the report.

Dmytro Khoroshun: We tentatively expect Ferrexpo’s 2022 pellet production volume to
amount to 11.7-12.2 mmt (32.0-33.5 kt per day), or 4-9% more yoy.