Головна сторінка
/
Новини
/

Ferrexpo hikes ore mining at Yeristovo 62% qoq

Ferrexpo hikes ore mining at Yeristovo 62% qoq

9 July 2013

Ferrexpo (FXPO LN) reported on July 9 a 5.6% qoq increase in total pellet production to 2.7 mmt in 2Q13. Pellet output from ore extracted at its newly launched Yeristovo mine surged 61.7% qoq to 0.53 mmt on 42.4% qoq growth in ore extraction at the mine. Production at its primary Poltava mine declined 4.1% qoq following a 4.6% decrease in concentrate production, despite a 21.4% qoq surge in iron ore mining. Low-profit production of pellets from third-party ore jumped 45% qoq to 95 kt.

 

Roman Topolyuk: Generally, Ferrexpo’s production is advancing in accordance with our expectations of 10 mmt of pellets from own ore in 2013 so far (vs. 9.7 mmt in 2012), though the distribution in output between its two subsidiaries looks surprising. As it appears, the company is shifting its focus to mining more ore at the new Yeristovo mine, where the annualized iron ore output reached 6.9 mmt in 2Q13. This is 39% higher than the mine’s initially indicated annual capacity (5 mmt).

 

On the other hand, the unexpected drop occurred in pellets output from the Poltava mine’s ore, despite double-digit growth in ore mining. A company representative clarified to us that Ferrexpo decided to process more iron ore from Yeristovo while accumulate some stocks of unprocessed ore from Poltava. We assume the stockpiled ore will be processed once enlarged pelletizing capacities are launched after the ongoing modernization.

 

The concentrate yield at Yeristovo grew 23% qoq in 2Q13 and nearly reached the average result of the Poltava mine, despite the mining not having reached the main ore yet. That implies a potential for a further increase in concentrate yield, and thus a decrease in pellet production costs from Yeristovo ore.

Останні новини

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...