The Swiss-headquartered resources company Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced that as of October 31, 2010, its net debt decreased by $97 million or 38 percent to $160 million, compared to $257 million as of June 30, 2010.
Accordingly, the decrease in Ferrexpo's net debt was a result of higher profitability and the receipt and part sale of VAT bonds. On October 31, 2010 Ferrexpo held cash amounting to $253 million.
Ferrexpo's total pellet production in Q3 2010 increased by 0.5 percent to 2.56 million mt, an increase from record production levels in Q2 2010. Production of its own ore in the third quarter increased by 0.9 percent quarter on quarter to 2.3 million mt. Year to date, including production in October this year, total pellet production increased by 15.7 percent to 8.336 million mt compared with 2009.
In Q3 2010, Ferrexpo's sales volume was 2.499 million mt, in line with Q2 2010 (2.512 million mt). Ferrexpo has long-term contracts in place for approximately 90 percent of its own output, with the remainder comprising trial cargoes to prospective new long-term customers.