Swiss-headquartered company Ferrexpo, whose main interests are in Ukrainian iron ore assets, has declared an interim dividend of 3.3 US cents per share for the first six months of 2009, as its cash generation and the visibility of its future cash flows have improved following the agreement of price contracts with its customers.
"Ferrexpo has successfully concluded price negotiations with the majority of its long-term contract customers at prices broadly equivalent to the prevailing benchmark price for iron ore pellets until April 2010," reads the company's release.
Accordingly, Ferrexpo intends to continue to pay "modest consistent" dividends based on continuing profitability and also on the company's sufficient operational flexibility to respond to the demands it will face for the remainder of the year and beyond.
In August this year, Ferrexpo's board had deferred its decision regarding an interim dividend for the first six months of 2009, citing poor market conditions.