Summary of 2015 Operational and Financial Results:
No work related fatalities (2014: three)
Record production volume up 6% to a record 11.7 MT (2014: 11.0 MT)
Record production of 65% Fe pellets, up 79% to 10.4 MT (2014: 5.8 MT)
Average C1 cash cost reduced 30% to US$32 per tonne, further reducing to US$24.30 per tonne in February 2016
Platts 62% Fe CFR iron ore fines price 42% lower in 2015, average US$56 per tonne vs. US$97 per tonne in 2014
Ferrexpo realised price (FOB) outperformed Platts index by 11%, declining 31% compared to 2014 due to relatively stable pellet premiums year on year, increased revenue from additional 65% Fe pellets sales and lower C3 freight
Sales volumes increased 1.5% to 11.3 MT (2014: 11.2 MT) reflecting higher sales to Germany and Japan as well as first shipments to South Korea
EBITDA margins remained strong at 33% (2014: 36%) due premium product offering and low positioning on pellet cost curve
Special items reflect:
Allowance for restricted cash at Bank F&C of US$146 million after expected tax relief
Disposal proceeds from Ferrous Resources of US$42 million
Impaired assets of US$5.6 million
Capex reduced to US$65 million (2014: US$235 million) reflecting the completion of the Group's investment programme, to increase quality and volume of output, as well the low iron ore price environment
Net debt at 31 December 2015 US$868 million (31 December 2014: US$678 million) principally reflecting the US$175 million reclassification of cash held at Bank F&C. During the year the Group repaid US$394 million of debt
Net debt to EBITDA of 2.78x (31 December 2014:1.37x) below the Group's target of 3x
Cash balance as of 31 December 2015 US$35M, cash balance as of 29 February 2016 US$36M after US$39M of debt repayments year to date
Dividends
The Board is pleased by the continued strong operational performance of the Group, its lower costs and the recent strength in the iron ore market. The Board is not recommending a final dividend for the year, in view of the uncertain iron ore pricing outlook and current gearing levels, although it is very pleased with progress to date in 2016. The Board will keep returns to shareholders under review and will return to dividend payments at an appropriate time which takes into account the strength of the business following over US$2 billion of investment and its financial position.
