|
Summary:
• Quarterly iron ore pellet production increases 18% quarter on
quarter to 3.1 million tonnes, reflecting the resumption of all four
pelletiser lines following upgrade work in previous quarters.
• Total full year production of iron ore pellets of 11.2 million
tonnes in 2021, a result in line year on year, and includes disruptions
during the year for pelletiser upgrade work.
• 100% of pellet production in 2021 comprised of high grade forms
of iron ore (grading 65% Fe or above), with production of medium grade
iron ore pellets phased out (2020: 99% high grade products).
• Production of higher grade (67% Fe) direct reduction pellets
increases by 27% to 431 thousand tonnes in 2021, representing 4% of
total pellet production in 2021 (2020: 3% of total).
• Total full year shipments of commercial concentrate of 234
thousand tonnes in 2021 (2020: 183 thousand tonnes). Production of
commercial concentrate typically coincides with periods of pelletiser
downtime and is primarily enabled by investment in the Group’s
concentrate stockyard project in 2020.
• Total full year sales volume of 11.3 million tonnes, mirroring
production for the year, and representing a 6% decrease year on year as
a result of a stockpile drawdown process completed in 2020.
• Group net cash position of approximately US$117 million as at 31
December 2021, increasing from a net cash position of US$4 million as at
the end of 2020, with this balance sheet strength reflecting the Group’s
investments in high grade iron ore production and strong market demand
for the Group’s products. This operational and financial performance
enabled the Group to announce on 22 December 2021 a further Interim
Dividend of 6.6 US cents per Ordinary share.
• In late December 2021 the Group’s Board of Directors (“Board”)
also announced the appointment of an additional Independent Non-
executive Director, Natalie Polischuk, who increases the number of
independent directors on the Board to five.
Jim North, Interim Group Chief Executive Officer, said:
“Drawing 2021 to a close, we are proud to report a strong end to the
year, with over three million tonnes of pellets produced in the final
quarter, and achieving our target run rate for pellet production of over
12 million tonnes. With the successful completion of a number of
pelletiser upgrades, we are now in a strong position to grow our
production base in the year ahead, both in terms of production volumes
and product grades, with a positive outlook ahead for premium grade iron
ore pellets.”
|
Thousand tonnes (“kt”), unless stated
otherwise |
Product
Grade |
4Q 2021 |
QoQ
(vs.
3Q
2021 |
YoY
(vs. 4Q
2020 |
12M 2021 |
YoY
(vs. 12M
2020 |
|
Total commercial production
(pellets & commercial
concentrate) |
|
3,101 |
+17% |
(2%) |
11,454 |
+0.5% |
|
Total pellet
production |
|
3,062 |
+18% |
(1%) |
11,220 |
+0.02% |
|
Pellet production comprised of: |
|
|
|
|
|
|
|
o Direct
Reduction (“DR”) Pellets |
67% Fe |
101 |
(48%) |
(34%) |
431 |
+27% |
|
o Ferrexpo
Premium Pellets |
65% Fe |
2,961 |
+23% |
+1% |
10,790 |
+0.1% |
|
o Ferrexpo
Basic Pellets |
62% Fe |
- |
- |
- |
- |
(100%) |
|
Commercial
concentrate production* |
67% Fe |
39 |
(14%) |
(52%) |
234 |
+28% |
(* Please note that the Group produced and sold 183 thousand tonnes of
commercial concentrate in 2020, which was not reflected in the
comparison period
columns for previous quarterly production reports in 2021, and the above
table now accounts for this material in the comparator period columns.
The Group also now defines
commercial concentrate production as the tonnage sold in any given
period, rather than shipments to the Group’s berth. Commercial
concentrate production
this year was
therefore 62kt,
89kt, 45kt
and 39kt in 1Q, 2Q,
3Q and 4Q
respectively.) |
