Ferrexpo drops pellet output 1% in 1H21, changes CFO

Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO
LN) produced 5.56 mmt of pellets in 1H21, or 30.7 kt per day, a 0.6% yoy drop,
according to Concorde Capital’s analysis of the company’s 2Q21 production
report released on July 7.

In May-June, the company produced pellets at an
average daily rate of 31.0 kt per day, which is 1.1% more than in 4M21, we
calculate.

Ferrexpo noted in its report that the third pellet
line upgrade was completed at the end of June, and that the upgrade of the
fourth pellet line is planned for 3Q21. Ferrexpo’s overall pelletizer capacity
will increase by 0.5-1.0 mmt per year (1.4-2.7 kt per day) as a result of the
pellet line upgrades, the report said.

Ferrexpo’s board appointed Nikolay Kladiev as its CFO
effective from the publication of its 1H21 results planned for August 4,
according to the company’s separate July 7 press release. Kladiev has been with
Ferrexpo since 2005, and since 2007 has served as the CFO of Ferrexpo’s main
production asset, Ferrexpo Poltava Mining. Prior to Ferrexpo, Kladiev held
audit positions with Arthur Andersen and Ernst & Young in Ukraine and
Eastern Europe, the release said.

Roman Palyvoda, the current acting CFO of Ferrexpo,
has decided to step down but will remain with the company until the end of
September.

Dmytro Khoroshun: Ferrexpo’s daily production rate will rise to 33-34 kt in 2H21,
resulting in Ferrexpo’s 2021 production volume of 11.6-11.8 mmt (31.9-32.4 kt
per day), or 4-5% more yoy, we expect.