Ferrexpo PLC on Thursday said iron ore production has ‘exceeded expectations’ despite the ongoing war in Ukraine.

The iron ore pellet producer and exporter with operations in Ukraine said third-quarter commercial iron ore production was 1.3 million tonnes, increasing 15% from 1.2 million tonnes in the second quarter. In the first quarter of the year, production was 945,000 tonnes.

Commercial production includes pellets and commercial concentrate.

The firm said iron ore pellet production increased by 17% to 1.3 million tonnes from 1.1 million in the second quarter and 901,000 in the first. Commercial concentrate production declined by 7.5% to 98,000 tonnes from 106,000 tonnes in the second quarter but was up from 54,000 in the first quarter.

Ferrexpo said it has been operating between one and two pelletiser lines out of its total four, and added that it will continue to do so for the remainder of the year, ‘assuming no further material changes to the operating environment and logistics availability in Ukraine’.

Interim Chair Lucio Genovese said: ‘It is pleasing to report that our performance during the quarter exceeded our expectations and that we were able to operate up to two of our four pellet lines. Our strategy to move early and right-size our business, so that we are more responsive to ever changing circumstances, is working.

‘Contrary to the prevailing market pessimism, iron ore prices strengthened over the quarter; a supportive factor given the higher logistics costs we are experiencing. Despite the challenging rail logistics and sea ports capacity available, we have continued to export premium products and service the needs of our premium European customers.’

Ferrexpo shares were up 1.3% to 71.95 each on Thursday morning in London.

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