FERREXPO plc (LON: FXPO) has announced that it is releasing the following update as part of its Annual General Meeting which is being held today.
Trading update
Group EBITDA in 1H 2019 is expected to increase materially compared with 1H 2018. Year to date, the improvement in profitability has been driven by higher pricing, production and sales volumes compared to 1H 2018. While the average C1 cost of production is likely to increase in 1H 2019 compared with 1H 2018, cost inflation has been lower than expected due to a fall in the Brent oil price and the European gas price partially offset by an appreciation of the Ukrainian Hryvnia versus the US Dollar.
Board appointment
Ferrexpo is pleased to announce that, as of 10 June 2019, Graeme Dacomb will be appointed to the Board as an independent non-executive director chairing the Audit Committee and will be a member of the Independent Review Committee which is looking into matters relating to Blooming Land.
Mr Dacomb was a partner at Ernst and Young (EY) for 26 years where, for his last twelve years, he was a lead partner in the extractive industry, responsible for coordinating the provision of a full suite of services to multinational mining and oil and gas clients including Xstrata, Fresnillo, and BP across a broad range of countries including emerging markets. In addition to audit services, he provided critical advice for his clients on corporate governance structures, risk management, acquisitions, disposals and financial systems and controls.
From 2011 to 2018, Mr Dacomb was a member of the Financial Reporting Review Panel.
There are no other matters that require notification in respect of Mr Dacomb pursuant to LR 9.6.13.
Steve Lucas, Chairman of Ferrexpo plc, said:
“Ferrexpo continues to be well positioned to supply a high quality iron ore product to the top steel mills in the world receiving a record price premium for its product. The Group’s balance sheet remains strong with net debt expected to further reduce compared to 31 December 2018.
The Independent Review into how Ferrexpo’s donations to a third party charity in Ukraine were used remains ongoing. The Company will make an announcement to shareholders when the Independent Review Committee completes its work. To date, after a significant amount of work on the part of our forensic accountants and legal advisors, there has been no conclusive evidence of any wrongdoing.
I am very pleased to announce the appointment of Graeme Dacomb as an independent director of the Ferrexpo Board chairing the Audit Committee. The appointment of someone of Graeme’s calibre underlines the Board’s commitment to the highest standards of corporate governance and underpins our confidence in the Group’s future business prospects. Graeme is well known and respected amongst his former clients and peers for his collaborative, supportive and culturally aware working style. I believe he has the right balance of expertise including industry and emerging market knowledge. I look forward to the valuable contribution that I’m sure he will make.
As previously stated Ferrexpo intends to make further Board appointments in due course. We are also in the process of appointing a new auditor. The new Chair of the Audit Committee will oversee this process.”
