Ferrexpo (LON:FXPO) has increased production significantly year-on-year, with more than 15 percent more iron pellets being produced in the year to date.
In a monthly production update Ferrexpo said that October had the second highest production of 2010, with 891,000 tonnes of iron pellets produced.
September was the strongest month so far in 2010, with 911,000 tonnes of iron pellets produced.
The company has now produced 8.3 million tonnes of iron pellets in 2010, compared to 7.2 million tonnes in the comparative period of 2009.
Ferrexpo noted that pellet production from third party concentrate is up significantly from previous years due to higher ongoing demand. The company has now produced 834,500 tonnes of pellets from third party material in 2010, compared to just 85,900 tonnes in the comparative period of 2009.
Evolution Securities analyst Charles Kernot said that the production update shows how the company is gearing up for its future expansion.
“Overall, these results show that Ferrexpo is continuing resolutely with its strategy and feeding its supplies into higher demand”, Kernot said.
The analyst reiterated a ‘buy’ recommendation with a 450p target.
Ferrexpo is a Swiss based resource company with assets in Ukraine, principally involved in the production and export of iron ore pellets, which are used in steel production. The company focuses mainly on its principal asset, Ferrexpo Poltava Mining (FPM), one of the largest iron ore resources in the world.