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Ferrexpo – Q1 production report, there remains upside potential from this cracking share tip

By Tom Winnifrith & Steve Moore | Friday 16 April 2021


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Iron ore pellet producer in Ukraine, Ferrexpo (FXPO) has announced a first quarter 2021 production report which includes it noting some ongoing pelletiser upgrade work impact though also that there has been some additional production, in terms of high-grade concentrate…


The latter was 65,000 tonnes linked to commissioning and ramp up of a concentrate stockyard project. That limited total commercial production decline to 10% on the prior quarter and helped it to +2% against the corresponding 2020 quarter. That was with production coming in at 2.779 million tonnes.


The company expects the upgrade work to increase overall pelletiser capacity by 0.5-1.0Mt per annum and we previously noted a 2020 $285 million swing to a net cash position after $195 million of dividends paid and additional cash flow potential this year considering pricing.


Despite having only been recommended in January at a 308p offer price, we continue to consider there growth and income value from a current circa 360p share price, £2.1 billion (currently approx. $2.9 billion) market cap. Continuing to target comfortably above 400p (a $3.25 billion+ market cap), still at worst hold.


This article first appeared on the N50 website which Tom Winnifrith runs with Steve Moore & Lucian Miers. To access the website ahead of the next share tip from Tom & Steve OUT THIS AFTERNOON and a new shorting piece this week click HERE

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