Ferrexpo PLC (LON:FXPO) said it continued to generate strong margins as selling prices rose higher than costs in 2019, while pellet production was in line with trimmed guidance.
The FTSE 250 group, which last week declared an interim special dividend of 6.6 US cents per share, said prices were up 16% over the past year, while cash cost of production rose 12% to US$48 per tonne.
Sales volumes for 2019 reached roughly 10,300 kilotonnes, compared to 10,227kt the year before, as production of high quality 65% iron pellets from the company’s own ore was up 3% in 2019 to 10,116 kt, in line with October 2019’s guidance.
Ferrexpo said it had US$131mln of cash at the year end and net debt had been reduced to US$282mln from US$340m a year before.
The company, which is currently being run by Chris Mawe, chief financial officer standing in as interim chief executive after billionaire boss Kostyantin Zhevago temporarily stepped aside in October to focus on accusations related to a bank he owned until 2015, said the refurbishment programme started in 2014 has now been completed and engineering studies are also being undertaken on expanding pelletising further.
An independent investigation commissioned by the company into the use of funds by Ferrexpo’s charity partner in Ukraine, Blooming Land, concluded last summer, though various tax and other investigations in the country were still ongoing.
The company said last week that a final dividend for 2019 is being considered that would be announced with the full-year 2019 financials on 18 March.
Ferrexpo shares were up 5% to 152.7p on Monday morning