Ferrexpo to pay dividend as outlook brightens

30th Oct 2009 07:38

Iron ore producer Ferrexpo has announced that it will pay an interim dividend of 3.3 cents a share, having deferred the decision when it delivered interim results in August due to market uncertainty.Ferrexpo has been hit hard by the downturn in commodity prices, but said this morning that its cash flow visibility had improved after successfully concluding price negotiations with the majority of its long term customers.It paid a dividend of 3.2 cents a share at the interim stage last year.'It is the view of the board that Ferrexpo should continue to pay modest consistent dividends based on continuing profitability and that the business has sufficient operational flexibility to respond to the demands it will face for the remainder of the year and beyond,' said chairman Michael Abrahams. 'The group has operations which are cash generative and can both support returns to shareholders and form a platform to finance the development of its world class undeveloped reserves. 'The board therefore believes it is appropriate to continue with an interim dividend in line with prior years, reflecting the Group's resilience and continued profitability through the downturn.'