Ferrexpo PLC (LSE:FXPO) shares opened 5.4% higher in early deals after it reported a significant increase in first-quarter production thanks to an improved electricity supply for its operations in central Ukraine.
The company more than doubled its total iron ore pellet output to 900,000 tonnes during the quarter, compared to 420,000 tonnes in the three months prior.
This jump was primarily driven by the restart of a second pelletiser line in late February following the easing of operational constraints experienced since Russia's full-scale invasion of the country over a year ago.
The company's output consisted entirely of high-grade iron ore, with all its material 65% iron content (Fe) or above.
“Going forward, we are looking to balance production volumes with a conservative approach to maintaining the group's balance sheet and liquidity metrics, providing a stable and consistent supply to our long-term customers,” said chief executive Jim North.
The shares shot up 5.95p after the update to 116.55p. The consensus price target, base valuations compiled by five banks and brokerages, is 164p.