Ferrexpo pellet output slides 1.2% yoy in 5M16, concentrate up 3.1% yoy

Ukraine’s largest iron ore miner Ferrexpo (FXPOLN, FXPO LN) produced 969 kt of pellets in May 2016, which is flat m/m and +1.0% yoy, Interfax-Ukraine reported on June 14. For 5M16, pellet output declined 1.2% yoy to 4.8 mmt while total concentrate production grew 3.1% yoy to 6.1 mmt. 

Roman Topolyuk: Ferrexpo decreased its pellet production in 5M16 due to scheduled maintenance, Concorde Capital learned from the company. Iron ore concentrate production growth is a positive development, which will enable Ferrexpo to compensate for the slower production in the second half of the year. We are sticking to our projection of pellet production of 11.9 mmt in 2016 (+2% yoy) and we reiterate our neutral view on Ferrexpo’s Eurobonds.