JOHANNESBURG (miningweekly.com) – Swiss headquartered iron-ore company Ferrexpo said on Tuesday that its pellet production had fallen to 10.4-million tonnes in 2017, owing to planned pelletiser maintenance.
The London-listed company, which is the largest exporter of pellets from the former Soviet Union, produced 11.2-million tonnes in 2016. Fourth quarter output was 2.79-million tonnes, compared with 2.49-million tonnes in the third quarter.
Ferrexpo’s sales volumes in 2017 amounted to 10.4-million, compared with 11.7-million, owing to the decreased production levels.
The average received price in 2017 increased significantly, compared with 2016, reflecting a 22% increase in the average 62% iron content fines price and a notable increase in the pellet premium, owing to strong demand for high-quality products.
Ferrexpo reported that its cash cost of production had increased to $33/t in 2017, from $29/t in 2016, owing to higher commodity prices impacting on input costs, local inflation and lower production levels.
Net debt decreased to $400-million, from $589-million at the end of December 2016, and is at its lowest level in six years.