Ferrexpo - The Next Phase Revealed

LONDON, January 27, 2011 /PRNewswire/ --

- Research Report From Edison Investment Research

Ferrexpo is currently producing c 9Mtpa of 62% and 65% Fe pellets from c 29Mtpa of iron ore mined. In its interim management statement, Ferrexpo mapped out a route for increasing output firstly to 12Mtpa of 65% pellets from 38Mtpa of iron ore by 2013 and then 20Mtpa of pellets from 60Mtpa of iron ore by 2018 "at the latest". Management has approved a budget of $647m to achieve the first phase of this development. The second phase will cost an additional c $1.2bn. The initiative rejuvenates and expands a development programme that was suspended in H208. At a long-term average pellet price of US$130/t (the same as Edison's FY11 estimate), Edison estimates that this production profile will be capable of supporting a share price 143% above its current level.

Please click here to view the full report: http://tinyurl.com/Edison-FXPO

Based in Switzerland and listed in London, Ferrexpo is a vertically integrated producer of iron ore pellets used in the production of steel. The company operates an opencast iron ore mine, concentrator and pelletiser in Ukraine and has rail access to export ports on the Black Sea.

Edison Investment Research is Europe's leading investment research company. It has won industry recognition, with awards in both the UK and internationally. The team of more than 65 includes over 35 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 280 companies across every sector and works directly with corporates, investment banks, brokers and fund managers. Edison's research is read by major institutional investors in the UK and abroad, as well as by the private client broker and international investor communities. Edison was founded in 2003 and is authorised and regulated by the Financial Services Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).

Contact details: [email protected] or +44(0)20-3077-5700

SOURCE Edison Investment Research

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED