StockMarketWire.com - Iron ore producer Ferrexpo hiked its interim dividend as profit was boosted by rising iron ore prices in the first half of the year.

For the six months ended 30 June, pre-tax profit swelled to $796.9 million from $294.00 million year-on-year as revenue increased 74% to $1.35 billion.

Pellet production was 5.6 million tonnes in 1H 2021, representing a level in line with 1H 2020, despite 'pelletiser upgrade work during the period,' the company said.

The company declared an Interim dividend of 39.6 US cents per share, up from 13.2 US cents per share.

'As of July 2021, the consensus forecast for iron ore prices (62% Fe) in 2021, based on a grouping of 11 investment banks, was US$170 per tonne for the full year, implying a decrease in the average iron ore price by approximately US$15 per tonne in 2H 2021 from the level seen in 1H 2021,' the company said.

'Iron ore futures contracts also indicate a fall in iron ore pricing in the second half of 2021, with contracts for delivery of iron ore (62% Fe) December 2021 priced at US$180 per tonne as of 28 July 2021, compared to a spot iron ore price of US$201 per tonne as of the same date,' it added.


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