Ferrexpo daily pellet output rises 4% m/m in December
12 January 2021
Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) produced 1,058 kt of pellets in December, which amounts to 34.1 kt per
day, or a 4.5% m/m gain, according to Concorde Capital’s analysis of the
company’s 4Q20 production report released on Jan. 12.
In 2020, Ferrexpo’s pellet output amounted to 11.22
mmt (30.7 kt per day), or 6.6% more yoy.
Ferrexpo noted in its report that its sales volume
amounted to 12.1 mmt in 2020, an 18% yoy jump. The company’s cash position at
end-2020 was USD 270 mln, more than doubling yoy, according to the report.
Dmytro Khoroshun: The December
daily production rate was the highest since at least 2016, which is positive
for Ferrexpo.
In its December investor presentation, Ferrexpo
mentioned that its 2021 pellet production volume might rise to 12 mmt (32.9 kt
per day), which will be 7% more yoy. However, Ferrexpo is planning a pelletizer
upgrade in 1H21, which, once completed, is expected to provide 0.5-1 mmt per
year of additional capacity, according to the presentation. Such an upgrade
might result in higher average production rates in 2H21 compared to 1H21.
