Ukraine-focused miner Ferrexpo FXPO.L said on Friday it was able to sell most of the iron-ore pellets it produced in the first quarter even though its main port was shut forcing it to seek alternative methods to deliver to sea-borne markets.
Shares in the London-listed miner, which have lost more than a third of their value this year as a result of the war in Ukraine, jumped 10% after the better-than-feared first quarter report.
Ferrexpo, whose operations are all in Ukraine, makes iron-ore pellets used in the steel industry.
Chief Executive Officer Jim North said the group is delivering its pellets to European customers via rail and barge, which have historically represented about 50% of the miner's sales.
Ferrexpo's operations are away from the main conflict zones, but Russia's invasion of Ukraine, which Moscow calls a "special military operation", has still meant operational and logistical challenges, including the closure of the port of Pivdennyi in the southwest of Ukraine.
"The situation in Ukraine remains complex ...the group will continue to produce and transport its products as long as the capability is in place and it remains safe to do so," Ferrexpo said in a statement.
The miner, which mainly sells its products to Europe, Middle East and Asia, reported iron-ore pellet production of 2.7 million tonnes in the first three months of 2022, with sales in the quarter of 2.6 million tonnes.
Ferrexpo's production in the first quarter was 11% lower than the previous three months.
Analysts at brokerage Peel Hunt called it a surprisingly strong first quarter and said operations and exports are in a better position than they had feared.