Metals and Mining
April 11, 2013
An expected 10% YoY expansion in Ferrexpo’s iron ore pellet production in 2013 amid largely flat pricing and production costs should lead to an 8% YoY increase in the company’s EBITDA to USD 433mn in FY13. Launch of its new Yeristovo mine in 2H12 should allow Ferrexpo to continue to lift its output through 2016. With the FXPO stock having been in a heavy slump for most of 2013, the issue now offers a 20% upside potential to GBP 2.18, according to our valuation. Additionally, the approval of a major new expansion project at Yeristovo later this year could provide a further boost to the share price.
