Ferrexpo PLC (LON:FXPO) grew cash flow 29% in the first half of the year as production of iron ore increased and so did its price.
Iron ore pellet production from the FTSE 250 company’s Ukrainian mines swelled 11% in the second quarter to 2.8mln tonnes from 2.5mln tonnes in the first.
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First-half pellet production was up 5% to 5.4mln tonnes compared to the same period last year, but the FTSE 250 group kept its full-year guidance for 10.6mln tonnes unchanged.
Thanks to stronger iron ore prices and premiums for iron ore pellets, the first half of the year led to strong cash flow generation, even though the average cost of production rose to US$46 per tonne from US$43 due to Ukrainian inflation and a strong hryvnia.
Net debt shrank to US$277mln as of 30 June from US$339mln at the end of December with a cash balance of US$90mln and available debt facilities of US$40mln.