Metals and Mining

August 08, 2013

Ferrexpo’s 1H financials took the market by surprise, with both EBITDA and net income exceeding the Bloomberg consensus by 7%. EBITDA edged up by 1% YoY to USD 244mn in the period, as a 19% expansion in pellet sales volume coupled with optimized S&D costs managed to offset a 9% YoY decline in the average selling price and a 2% YoY rise in production cash cost. We leave our FY13 projections for the company unchanged and reiterate our BUY rating on the FXPO stock with target price of GBP 2.18.