Ferrexpo approves interim dividend on continued strong performance
By Josh White
Date: Wednesday 22 Dec 2021
(Sharecast News) - Ferrexpo's board confirmed on Wednesday that it has approved an interim dividend of 6.6 US cents per share.
The FTSE 250 iron ore miner said the dividend reflected the company's continued strong operational and financial performance, in addition to the positive outlook for high grade iron ore pellets, with pellet premiums remaining elevated compared to historic levels.
It said the dividend also reflected the strength of the group's balance sheet, with Ferrexpo moving to a net cash position in 2021, and followed its repayment of the remaining balance of its long-term debt facility in June.
Following payment of the dividend, total dividends paid to date for 2021 would be 46.2 cents per share.
The interim dividend would be paid on 28 January to shareholders on the register as at the close of business on 7 January, in sterling, with an election to receive it in dollars.
"Ferrexpo has long sought to apply a balanced approach to capital allocation, and today's announcement is a continuation of this approach, with the group seeking to provide shareholder returns whilst also investing in organic growth opportunities," said interim chief executive officer Jim North.
"Today's announcement follows on from the announcement of our shareholder returns policy in November, which outlined the level of dividends that we expect to issue in the normal course of business, with the group's strong operational and financial performance enabling additional dividends in 2021."
North said the company was seeing "continued resilience" in the premiums paid for high-grade iron ore, as well as elevated pellet premiums, with both factors driven by the "global push" to decarbonise steelmaking.
"With these market factors collectively justifying our long-held strategy to invest in higher grade iron ore pellet production.
"We will continue to pursue a balance of growth in both volumes and pellet quality, alongside shareholder returns, as we look towards the next phase of Ferrexpo's development."
At 1001 GMT, shares in Ferrexpo were down 0.03% at 300.72p.
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