Record production levels for Ferrexpo

11th Nov 2010 10:24

Shares rose in Ukrainian iron ore producer Ferrexpo after a strong third quarter saw total pellet production in the year to date increased 15.7% compared with 2009.Total pellets produced increased to 8.34m tonnes in the year to date, from 7.20m tonnes in the same period previously."Production in October 2010 was the highest monthly production of 65% Fe pellets on record while total production in September 2010 was the highest since 1987", the group says.Chairman Michael Abrahams said that the group's progress in the period was supported by increased sales in its core markets, and the penetration of new markets such as Japan."These factors are expected to underpin a strong financial performance for the remainder of 2010 and into 2011 where the Group will remain focused on enhancing cash flows to support growth projects", he said.Significantly higher cash flow generation enabled the board to approve the total capital expenditure of $647m to commence immediately. The funds will go towards development project which have been on hold since October 2008.