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Low iron ore price hits Ferrexpo’s H1 earnings

Ferrexpo, the iron ore pellet producer with mines in the Ukraine, has reported a 45% fall in EBITDA for H1 2015, from the corresponding period of 2014, to US$176 million, with EPS down 44% to USc19.6. Despite an 8% increase in pellet production, to a record 5.8 Mt, and a 30% reduction in cash costs, to US$33.4/t, the 46% decline in the average pellet price received impacted results and led to the reported loss.

Operating cash flows totalled US$88 million compared to US$138 million in 1H 2014 principally reflecting the lower iron ore price environment.

The company reduced its capital expenditure significantly in H1 2015 to US$25 million (H1 2014: US$132 million) as it completed a major upgrade programme.

As at 30 June 2105, the company had cash of US$471 million and net debt of US$653 million.

The company has maintained an interim dividend of USc3.3/share for payment in September.

Low iron ore price hits Ferrexpo’s H1 earnings: FXPO

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