Ferrexpo PLC (LSE:FXPO) shares rocketed 11% higher as production at the Ukraine-based iron pellet maker hit its highest since the Russian invasion, while exports have also resumed from ports in the country.
Output jumped 203% to 1.8 million tonnes of pellets in the first quarter of this year, though this was still some way short of the 2.8 million tonnes produced before the start of the war.
Executive chair Lucio Genovese said production improved even though 669 employees are currently serving with the Ukraine military, the most since the outbreak of fighting.
“It is pleasing that despite facing so many challenges, we are able to report solid production and sales numbers for the quarter,” Genovese said.
“As long as we believe the level of risk is acceptable, taking into account the ongoing war in Ukraine, we will continue to use all the export capacity available to ensure that we are supporting the interests of all stakeholders.”
“The ability to export through the Ukrainian Black Sea ports has been positive not just for our production and sales, but also for the morale of our workers. They can sense that the company is working hard to protect their jobs and livelihoods.
“Although it is positive that we have been able to export through the Black Sea ports, it has not been without its challenges. Logistics have been complex and shipping and insurance costs have increased. As the ports provide access to larger vessels, we have, however, benefited from economies of scale.”
Ferrexpo shares have been hurt recently by a legal action related to its principal shareholder, billionaire Konstantyin Zhevago, that sparked a provision of £105 million in its recent results.
Shares were 5.7p up at 53.9p.
