Ferrexpo plc

Ferrexpo said first-half 2021 revenue increased 74% year over year, EBITDA rose 147%, underlying EBITDA margin was 64%, C1 cost increased to $47 per ton, and CapEx totaled $142 million, up 48% for the period. Production was 5.6 million tonnes in the first half, in line year over year, and the company said it remained in a net cash position after repaying its main debt facility on June 30. For the remainder of 2021, management said CapEx should be around the $300 million mark for net growth and sustaining spend, and C1 costs are expected to continue tracking commodity prices and include further striping and pelletiser maintenance.

Lucio Genovese emphasized that Ferrexpo is prioritizing capital discipline, balance-sheet strength, and shareholder returns while continuing to invest in growth. He said the company has not adopted an explicit capital return policy yet, but is reviewing one, and framed future spending as selective and accretive. His tone was confident and pragmatic, while also addressing governance and shareholder-access concerns by stressing that Ferrexpo should be treated as a separate public company from issues involving its controlling shareholder.

Nikoley Kladiev highlighted that iron ore prices and pellet premiums drove the 74% revenue increase, while underlying EBITDA margin expanded to 64%. He said C1 cost rose to $47 per ton as commodity input inflation returned, but noted management is using commercial, financial, and operating measures to keep costs controlled. He also detailed $142 million of CapEx, including $93 million on expansion projects, and said the company repaid its main debt facility on June 30 while maintaining a net cash position. Shareholder returns during the period totaled $0.53 per share, and the board announced a 39.6 U.S. cent interim dividend.

Analysts pressed management on capital returns, and the company said there is no explicit payout policy yet, though it is considering how to formalize one around dividends and cash management. Questions on DR pellet economics and volume plans were answered with a focus on international benchmarks, a roughly $10 premium versus normal ferrous pellets, and management’s view that demand should grow as decarbonization accelerates. There were also questions on related-party investigations, Mr. Zhevago’s status, the Galeschynske license, and government actions in Ukraine; management said the investigations are closed, the license dispute is being challenged, and the board is monitoring the shareholder-related situation closely.