StockMarketWire.com - Iron ore group Ferrexpo said it expected first-half sales to increase by approximately 4% amid ‘stronger’ iron ore prices and premiums for iron ore pellets.

First-half sales volumes were expected to increase by approximately 4% to 5.0MT, with pellet production up 5% to 5.4MT.



The company left its annual production guidance of 10.6MT unchanged.

The company said it had continued to generate ‘strong cash flow due to a 29% increase in the Group's average received price compared to the average FY 2018 price, reflecting stronger iron ore prices and premiums for iron ore pellets.’

The average cost of production for the half was expected to be approximately US$46 per tonne, compared to the average 2018 cost of US$43 per tonne. The increase in costs was blamed on Ukrainian inflation and a strong Hryvnia currency against the US dollar

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