Ferrexpo profits from price hikes

23rd Mar 2011 08:42

Ukrainian iron ore pellet producer Ferrexpo doubled revenue in 2010 and profit swelled fivefold to almost $500m as production hit a record, taking full advantage of strong demand and high prices.Profit before tax jumped to $498m from $81m in 2009 on sales up $1.3bn from $649m the previous year. Pellet production grew 14% to 10m tonnes as the company continued at full capacity. In November it was agreed that $647m should be spent on doubling output.This year has also started well. Ferrexpo continues at full capacity to meet demand. "Ferrexpo's resource base is one of the largest in the world with estimated iron ore resources of over 20 billion tonnes," non executive chairman Michael Abrahams said."This will support steady production growth, while low cost mining facilities and integrated infrastructure from mine to rail, river and port means that the group is well placed to deliver sustainable value to shareholders, employees and its country of operation throughout the commodities cycle." The final dividend stays at 3.3 US cents a share.