Ferrexpo delays dividend decision
By Iain Gilbert
Date: Friday 22 Apr 2022
(Sharecast News) - Ukraine-focussed mining firm Ferrexpo said on Friday that it had been forced to delay a decision as to whether it should pay a dividend or not following Russia's invasion of the country.
Ferrexpo, which also stated it will pause projects not expected to deliver near-term growth, said all its operations in Ukraine were away from the main conflict zones but highlighted that the war, which began on 24 February, had created many operational and logistical challenges.
The FTSE 250-listed firm also posted its latest full-year earnings on Friday, with the miner revealing revenues had surged 48% to $2.5bn in 2021, reflecting rising demand for high-grade iron ore, while underlying earnings shot up 68% to $1.43bn.
Net cash flows from operations came in 59% higher year-on-year and Ferrexpo's net cash position was $117.0m as of 31 December 2021, up from $4.0m a year earlier.
However, despite the positive movements, Ferrexpo stated that in view of Russia's invasion of Ukraine, it had decided to defer any decision in relation to an interim dividend.
"The board will continue to assess the situation in Ukraine, and when appropriate, will make a decision in relation to shareholder returns," said Ferrexpo.
As of 0840 BST, Ferrexpo shares were up 4.92% at 183.50p.
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