OREANDA-NEWS. November 12, 2010. On Nov 11 Ferrexpo has published its 3q2010 managerial report, making several points about the solid operational perfomance, decrease in the net debt, and management’s commitment to invest heavily in existing and perspective capacities. PGOK, which concentrates all production capacities of Ferrexpo, managed to increase pellets output by 15.7% yoy, holding high watermark production level of 2Q2010. FXPO net debt has fallen by 37.7%, driven by high iron ore prices and VAT bonds sale. The company is planning to commit USD  647mn in development Capex of which at least USD  223mn is to be spent in 2011. Doing so, the Company plans to rely on internal cash flows and USD 350 debt pre-export facility attracted in September.

Millennium Capital: the news is FXPO LN and PGOK UK, as it resumes Capex after the crisis halt without attracting heavy borrowing on the back of excellent production results and favorable global iron pellets prices. The positive implication for PGOK is its’ mine life extension project worth USD 168mn and the upgrade of the pelletizing capacities worth of USD  212mn, that will allow to produce only 65% Fe content pellets.