Ferrexpo

• 19/01/12

  Director Declaration

• 12/01/12

  Production for 4Q 2011

• 19/12/11

  Ferrexpo AG launches legal proceedings

• 10/11/11

  Interim Management Statement

• 06/10/11

  Production for 3Q 2011

• 

  10/11/11

  Ferrexpo “on track” to meet production targets

  Evolution Securities rates the firm as “a very competitive iron ore producer” and has stuck with its 504 pence per share price target 

• 

  06/10/11

  Ferrexpo’s shares see strong rise after it reveals increased production figures

  Broker Evolution Securities has set a price target of 504 pence for the shares, which were trading up at just below 300 pence each at lunchtime today

• 

  27/09/11

  Ferrexpo has strong cash generating potential despite current volatility, say analysts

  At current levels, iron ore pellet producer Ferrexpo's shares are undervalued, according to broker Seymour Pierce, which has produced a research note on the stock following a visit to its operations in Ukraine.

• 

  25/08/11

  Ferrexpo heavily undervalued and full of promise, analysts say

  Ferrexpo, the Ukraine-focused iron ore pellet producer, has seen heavy falls in its share price in recent months despite it putting out strong interims and an upbeat outlook just earlier this month. Seymour Pierce for one reckons the stock is now very undervalued and recommends the shares as ‘buy’ with a price target of 503 pence. 

• 

  17/08/11

  Don’t be underweight miners, warns JP Morgan Cazenove

  Although the ‘big-cap’ mining sector is down 29 per cent from this year’s peak JP Morgan Cazenove analyst David Butler reckons portfolios should not be ‘underweight’ as far as the miners are concerned. His preferred stocks in the sector are Rio Tinto, Anglo American and Fresnillo.

• 13/01/12

  Broker still keen on Ferrexpo after good output

• 12/01/12

  Ferrexpo Q4 total iron ore pellet production up 3.3 pct vs Q3

• 19/12/11

  Ferrexpo starts action in London over Poltava dispute

• 11/11/11

  Ferrexpo’s solid Q3 update greeted by Deutsche Bank and Seymour Pierce, target prices upheld

• 10/11/11

  Ferrexpo achieves solid third quarter

• 

  21/10/2010

  Ferrexpo One2One Presentation - 21st October 2010 (PDF)

  Ferrexpo One2One Presentation - 21st October 2010
• 

  04/06/2009

  Ferrexpo One2One Investor Presentation 4 June 2009 (PDF)

  Gavin Mckay of Ferrexpo updates investors at the Proactiveinvestors One2One Forum on 4 June 2009

Ferrexpo plc is a Swiss headquartered resource company with assets in Ukraine. It is principally involved in the production and export of iron ore pellets which are used in the manufacture of steel. Ferrexpo’s asset base is one of the largest iron ore resources in the world.

The Ferrexpo Group currently produces around 10 million tonnes of iron ore pellets per year and has several growth projects in place to double its production. Ferrexpo remains committed to its aim to be a leading global supplier of iron ore pellets, providing outstanding service to its customers and strong returns to its shareholders.

As part of this commitment, Ferrexpo plc became the first Ukrainian company to be listed on the main market of the London Stock Exchange (ticker: FXPO) following its successful Initial Public Offering on Friday 15th June 2007.

Ferrexpo plc is a member of the FTSE UK Index Series. It is currently the only pure-play iron ore company listed on the LSE.

Ferrexpo is a UK-incorporated public limited company.

Full Main Board LSE listing since June 2007, and member of the FTSE 250.

UK Corporate Governance in place - independent Board.

Swiss headquarters (marketing & finance) – Swiss tax domicile.

Ukrainian mining operations.

Ferrexpo produces exclusively iron ore pellets.

Roughly half of production is high-quality 65% Fe pellets – the remainder is 62% Fe pellets.

Ferrexpo produces approximately 9.5mtpa at present.

Ferrexpo’s processing plant capacity is 12mtpa.

Ferrexpo has 6.9 billion tonnes of JORC resources, making it world class in size and the largest in Europe.

The average ore grade is around 30% Fe.

Ferrexpo has a further 15.2 billion tonnes of resources classified under the Soviet GKZ Code.

Mining operations have been operating uninterrupted for 30 years.

Substantial opportunity for brownfield growth, with plans to double and then quadruple production.

Ferrexpo is primarily an export business, supplying customers principally in Central and Eastern Europe and Asia.

Location ‘on the doorstep of Europe’ - proximity to key customers.

Continuous rail ‘just in time’ delivery service to many customers.

Lowest cost of supply to key customers in and around Europe.

Very strong customer relationships in Traditional (Europe) and Growth (Asia) markets.

Ferrexpo sells about 90% of its production to an established customer base on long-term supply contracts, which are subject to price renegotiation annually with reference to the annual international benchmark price for iron ore pellets.

Marketing:

From its substantial magnetite resource, Ferrexpo Poltava Mining (FPM) supplies iron ore pellets in two grades (62% Fe and 65% Fe) to blast furnaces in the global iron and steel industry.  Our marketing is divided regionally into three segments:

Traditional Markets: Ukraine, Eastern and Central Europe and the CIS

Natural Markets: Western and Southern Europe, the Middle East and Turkey

Growth Markets: PR China, Japan, India, Taiwan

Products:

Ferrexpo Marketing works with customers to ensure that pellet specifications, pricing and transportation are set to meet their requirements.  Product quality is monitored through the production process and Ferrexpo Poltava Mining laboratories are accredited by relevant national testing authorities.

Our competitive advantages include:

Long resource life

London Listed company with best practice governance

Competitive delivered pricing into major global markets

Just in time and product switching capability on short notice for Central Europe customers

Own dry bulk ocean shipping terminal

Logistical expertise in Central Europe to manage deliveries direct to customers

Customer service and technical support from our global marketing structure

Current products:

62% Fe Blast Furnace pellets

65% Fe Blast Furnace pellets

Future planned product suite*:

Blast Furnace pellets:  All 65.5% Fe and <5% silica BF pellet

Pellet Feed:  67.5% Fe and 4.5% silica pellet feed

Direct Reduction pellets: 68% Fe and 1.7% silica DR pellet

Logistics:

Ferrexpo Poltava Mining is conveniently located on both the extensive Ukraine rail network and the Dnipr River allowing for flexible dispatches of product in all directions.

The majority of product is dispatched by rail to customers in Central Europe, Russia and Ukraine, to the Danube River barge ports for water borne delivery to central and southern Europe, and also to the Yuzhny ocean vessel port facilities. Pellets are also barged direct from Ferrexpo Poltava Mining to Yuzhny port and also direct to customers facilities in central Europe.

This flexibility is both a core benefit of Ferrexpo supply to customer and with alternate routes also provides for maximum delivery risk mitigation.

Ferrexpo is building its own modern rail car fleet for maximum control of product transportation; with over 800 rail wagons in service in December 2010 and progressing to self sufficiency.

TSO Ruda Port JV:

Ferrexpo owns a 49.9% interest in a modern and privately-owned dry bulk ocean shipping terminal in Yuzhny, Ukraine. With a nominal capacity of 5 to 6 million tonnes per annum, all of which is available to Ferrexpo, the TIS-Ruda facility provides the Group and its customers with a dedicated ocean vessel loading facility, as well as:

Assured rail/handling availability

Adequate buffer stock capacity

Conventional shiploading

High quality-control focus

Resource Base: 

Ferrexpo has one of the largest resource bases in the world. To date, 6.3 billion tonnes have been converted to the JORC system of classification, with a further 15.2 billion tonnes remaining classified under the old Soviet GKZ system. The company’s GKZ resources are well drilled and in the converted resources the JORC numbers closely approximate the GKZ measurements.

Iron Ore:

Iron ore is the most abundant commodity on Earth. At present, the largest consumer of iron ore in the world is China – and, ironically, China has almost no quality iron ore deposits. China is expected to drive demand for iron ore for many years to come, with other rapidly industrialising nations such as India likely to support this trend.

Iron ore is used almost exclusively in the production of steel. Steel is demand is driven by the construction industry and governmental infrastructure expenditure, as well as by heavy industries such as automobile manufacture. The primary ingredients of steel are iron ore and coking coal, while other commodities such as manganese and ferrochrome are used in smaller quantities to produce steel with differing qualities.

Iron ore is a bulk commodity like coal and some other steelmaking materials, with a low value-to-weight ratio relative to other commodities. As a result transport is key from both a cost and logistics perspective, as transport costs form an appreciable percentage of the total cost of supply of iron ore.

There are three basic types of commercial iron ore:

Fines (fine powdered iron ore - 70%-80% of world production)

Lump

Pellets

Lump and pellets are ‘direct charge’ materials, which means that they can be poured directly into a blast furnace with no further processing, and so trade at a premium to fines. Pellets are more costly to produce, however, but the availability and quality of lump ore is declining worldwide, so the market for pellets is likely to become stronger to compensate.

Ferrexpo produces solely pellets, and is about the 12th largest iron ore producer in the world.

Shares in issue: 588.6m 10p Ordinary Shares in Issue, as at Last Close.

Major Shareholders Information

Shareholder Name Amount % Holding

Fevamotinico S.a.r.l 300,198,313 51.00

BXR Group Limited 147,156,035 24.99

Director Shareholdings

Director Name Amount % Holding

Christopher Mawe 300,000 0.05

Raffaele Lucio Genovese 169,005 0.03

Michael David Abrahams 167,646 0.03

Miklos Salamon 100,000 0.02

Ihor Mitiukov 31,327 0.01

Wolfram Kuoni 28,290 0.00

Oliver Alexander Baring 20,130 0.00

Updated from Ferrexpo website 18.08.11

Connect with Facebook to view or add comments for this company