2 December 2011
Poltava Iron Ore (PGOK UK), the core asset of Ferrexpo (FXPO LN), reduced 11M11 pellet production 3% yoy to 8.92 mln t, according to Interfax. In November, the company reportedly produced 0.84 mln t of pellets, -2% yoy. Ferrexpo has yet to release official monthly production numbers for November. Alexander Paraschiy: We put the slight decline in pellet production down to a smaller share of lower-margin third-party concentrate processing and a decreased share of low-grade (62% Fe) pellets – a strategy that Poltava Ore has pursued throughout 2011. Still operating at full mining capacity, the company continues to increase the value-added in its final product in a bid to retain its high profitability.