Ferrexpo

• 24/04/12

  Director/PDMR Shareholding

• 20/04/12

  Interim Management Statement

• 20/04/12

  Proposed Purchase of RailCar Wagons

• 20/04/12

  2012 AGM and Related Party Circular

• 12/04/12

  2011 Annual Report and Accounts

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  21/03/12

  Ferrexpo lays groundwork for the future

  Iron ore pellet producer Ferrexpo has been in business for over thirty years but its operations have gathered renewed momentum recently. The question is can it maintain the momentum?

   

   

   

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  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. 

• 20/04/12

  Ferrexpo keeps sales steady in first quarter, output rises

• 11/04/12

  Broker upbeat on Ferrexpo's 2012 production

• 10/04/12

  Ferrexpo reveals slight increase in iron pellet production

• 16/03/12

  Brokers upbeat on Ferrexpo after record earnings

• 14/03/12

  Ferrexpo beats forecasts despite economic uncertainty - Update

• 

  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 principally involved in the production and export of iron ore pellets to the global steel industry. Backed by one of the largest iron ore resources in the world, our aim is to realise the potential of our unique resource. We are the largest exporter of pellets in the Commonwealth of Independent States and a top ten pellet producer in the global seaborne iron ore market.

At the core of our business is the Kremenchuk Magnetic Anomaly, a 50km iron ore strike, located on the River Dnieper in central Ukraine. This has approximately 20 billion tonnes of iron ore resource, across ten deposits.

The two deposits currently being mined produce crude ore with an iron content of around 30%, which is processed and converted to iron ore pellets with an iron content of 62% and 65%. These pellets are used by steel mills in blast furnaces to make iron and steel, and they have positive process and environmental qualities as compared to other forms of iron ore input materials.

Sales and logistics are carried out by a specialist marketing division with offices in Baar, Dubai, Kiev, Shanghai and Singapore. Our principal customers are in Eastern, Central and Western Europe, China and Japan and we have excellent access to our global customer base through our Black Sea port in Yuzhny and via Europe’s extensive rail and waterway network.

We produce around ten million tonnes of pellets annually but are seeking to increase this through a phased capital investment programme. The first phase of investment involves the modernisation and debottlenecking of our production facilities as well as an increase in quality to achieve full production of Premium 65% Fe iron pellets. We are investing to extend the current Poltava mine life to 2038 and by the end of 2012, we expect to be mining a third deposit, which will enable us to increase pellet output to 12 million tonnes by the end of 2013.

Future plans are to increase production output to 20 million tonnes through the construction of a new processing facility, the development of which is expected to be approved by the Ferrexpo Board in 2012.

Ferrexpo Produces Iron Ore Pellets

• Mining and production operations in the Poltava region, some 200 miles (310 kilometres) from Kiev
• Komsomolsk is the nearest town with over 54,000 inhabitants
• We produce some 10 million tonnes of pellets per annum

               -  Premium 65% Fe

               -  Basic 62% Fe

• We are one of the top ten global seaborne producers of iron ore pellets

We have one of the largest iron ore resource bases in the world. To date, 6.4 billion tonnes have been converted to the JORC system of classification, with a further 14.2 billion tonnes remaining classified under the former Soviet Union GKZ system.

Mining

Ferrexpo Poltava Mining Pit

• Current mining operations, at the Ferrexpo Poltava Mining Pit, incorporate two of the 10 deposits
• The pit is 330 metres deep, the same the height as the China World Trade Centre in Beijing
• Approximately 30 billion tonnes of crude ore are excavated per annum
• The iron ore has a Fe content of 30%

Continuous Mining Operations

• The mine operates 365 days a year, 24 hours a day
• We are investing US$138m to extend the current mine life to 2038
• First ore from Yeristovskoye, the next deposit to be mined, is expected at the end of 2012
• Investment being made to pre-strip the Belanovskoye deposit

Operating to Best International Standards

• High quality modern Hitatchi, Caterpillar and Bucyrus mining equipment
• On an equivalent Fe basis, production output doubled in the last 10 years
• Trucks used in the pit are installed with GPS, to improve efficiency
• We have a strong focus on maintaining safety across all our operations

Michael Abrahams was appointed to the Board in June 2007. He is also Chairman of the London Clinic and the Prudential Staff Pension Scheme.

He was Deputy Chairman of Prudential plc until May 2000 and has served as chairman and as a director of a number of quoted and unquoted companies and pension schemes.

Oliver Baring joined the Board on 1 December 2007. He has been chairman of Mwana Africa plc since its reverse takeover of African Gold plc in September 2005.

He retired from UBS Warburg in 2001, having led the International Mining Group with responsibility for Africa and Europe. Previously he was head of the UBS Warburg mining equity sales team and was responsible for its respected coverage and sales capability. He was a partner in Rowe and Pitman before its merger with SG Warburg. He is non-executive chairman of First Africa Holdings Limited, and is a non-executive director of Blackrock World Mining Trust plc as well as a member of the Advisory Council of Sentient Resources Fund.

Ihor Mitiukov joined the Board on 14 June 2007. He is the managing director and head of country for Ukraine, Morgan Stanley. He was the general director of the Financial Policy Institute until March 2008.

From 2002 to 2005 he served as Extraordinary and Plenipotentiary Ambassador of Ukraine in the United Kingdom. He also represented Ukraine in the International Maritime Organisation. From 1997 to 2001 he served as Minister of Finance of Ukraine and, from 1995 to 1997, as Ukraine’s Special Representative (with Vice-Prime Ministerial status) to the European Union in Brussels. In 1994, he was deputy governor of the National Bank of Ukraine and then Vice-Prime Minister of Ukraine for Banking and Finance. Prior to that, he held various positions at Agrarian-Industrial Bank Ukraine, and was appointed as its deputy governor in 1992. Ihor Mitiukov graduated from the Cybernetics Department, Kyiv State University and has a PhD in Economics (1985) from the Institute of Economy, Academy of Sciences (Ukraine).

Wolfram Kuoni joined the Board on 14 June 2007. He is the founder and senior partner of Kuoni Attorneys-at-Law, Zurich, Switzerland, and serves on a number of boards of directors.

He has over 12 years of experience in investment banking. Prior to 2005, he held a number of positions within UBS Investment Banking (Zurich and New York), including head of the European Export and Project Finance Team. He also originated and structured cross-border acquisitions and equity capital markets transactions. He graduated with a law degree from the University of Bern, and holdsa doctorate in law from the University of Zurich and an MBA from INSEAD in France. He is a member of the Zurich Bar.

Lucio Genovese joined the Board on 14 June 2007. He is Chief Executive Officer of Nage Capital Management, a Swiss-based advisory and proprietary company specialising in the metals and mining sector.

He is the non-executive Chairman of Firestone Diamonds plc and serves on a number of other boards of directors. He has previously served as investment officer and a member of the board of Taj Investment Limited with responsibility for its Indian public and private investment portfolio. Prior to that, he held a number of positions with Glencore International, including senior member of the Copper Division, CEO of CIS Operations, manager of the Moscow office and trader in the Ferrous Division. He is a Chartered Accountant (South Africa).

Kostyantin Zhevago joined the Board as a Non-executive Director on 14 June 2007 and was appointed Chief Executive on 1 November 2008.

He is ultimately the controlling shareholder of Ferrexpo. He has been a member of the Ukrainian Parliament since 1998. He is currently a member of the Parliamentary Committee on Law Policy and Chairman of the Parliamentary Group for Inter-Parliamentary Relations with Japan. Since 2002, he has been a member of the permanent delegation of the Ukrainian Parliament in the Parliamentary Assembly of the European Council and a member of the Ukrainian faction of the Committee for Parliamentary Cooperation between Ukraine and the European Union. He has previously served as chairman of the management board and deputy chairman of the supervisory board of CJSC Commercial Bank Finance and Credit (‘Bank F&C’) and as a member of the supervisory board of JSC Ukrnafta. Between 1993 and 1996, he was financial director of F&C Group of companies. He is a non-executive director of New World Resources plc, a subsidiary of BXR Group Limited. He graduated from the Kyiv State Economic University in 1996, specialising in international economics.

Chris Mawe joined the Board on 7 January 2008. He qualified as a Chartered Accountant with Coopers and Lybrand in 1991, having gained a First Class Honours degree in Engineering.

He has held senior financial positions for the past 16 years, firstly with IMI plc both in the UK and Europe, and then with Carclo plc as finance director. Most recently he was finance director of UK Coal plc.

Mike Salamon joined the Board on 27 March 2009. He is executive chairman of New World Resources plc, a subsidiary of BXR Group Limited.

He is also a non-executive member of the board of directors of the New World Resources subsidiary OKD, and a non-executive director of Central Rand Gold, Gem Diamonds and Minera las Cenizas. With a career spanning more than 30 years, recently with BHP Billiton, he has extensive knowledge of the international mining and extractive industries. Between 2003 and 2006, he served as an executive director of BHP Billiton with responsibilities for the aluminium, copper and nickel businesses. From 2001 to 2006, he also chaired BHP Billiton’s Operating Committee, which was accountable for inter alia the BHP Billiton group’s health, safety and environment, projects, purchasing and operating excellence.

In 2001 he oversaw the merger integration of Billiton plc and BHP Limited. He was a co-founding director of Billiton plc in 1997, and oversaw the company’s listing on the London Stock Exchange in 1997. Before 1997 he held a number of positions, first at Anglo-American and later in the coal divisions of Shell and Gencor Ltd. He graduated in 1975 from The University of the Witwatersrand, Johannesburg with a degree in Mining Engineering (Cum Laude) and obtained an MBA from the London Business School, University of London in 1981.

Information updated from Ferrexpo website 16.04.2012

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