London-listed Ferrexpo, which operates mines in the Ukraine, produced about 10.6-million tonnes of iron-ore pellets in 2018 – a 1.2% increase on the 10.4-million tonnes produced in 2017.
In a trading update published on Tuesday, the company reported that pellet production for this year would be in line with that of 2018, owing to ongoing maintenance at its operations.
Sale volumes in 2018 are expected to reach about 10.2-million tonnes, compared with the 10.5-million tonnes sold in 2017. Sales volumes were impacted on by reduced barge shipments, given the low water levels on the Danube river in the second half of the year.
Further, slower-than-expected rail shipments in December and the timing of a capesize shipment falling into January 2019 also impacted on sales volumes.
The group expects these sales volumes to be caught up in the first half of this year.
The group’s average received price was about 9% higher year-on-year in 2018, reflecting stronger premiums for higher-quality iron-ore, including higher average pellet premiums, offset by a slightly lower average 62% iron-ore fines price and higher international freight rates.
The full-year average 2018 cash cost of production is expected to be about $44/t, compared with $33/t in 2017, owing to higher energy prices and higher mining costs.
Net debt stood at $340-million as at December 31, compared with net debt of $403-million as at December 31, 2017.
The group’s cash balance was $60-million as at December 31, while undrawn available debt facilities amounted to $205-million.