Shares in iron ore pellet producer Ferrexpo (LSE: FXPO) closed 17% higher at 84.80p on Thursday after the company reinstated its dividend on the back of a strong 2023 performance.
The FTSE 250 listed Switzerland-based company, which has assets in Ukraine, benefited from improved demand and higher iron ore prices in the second half of 2023. Ferrexpo announced an interim dividend of 3.3 US cents, the first payout since August 2022.
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Executive Chair Lucio Genovese said 2023 had “exceeded expectations” and that after covering costs and capital expenditures, Ferrexpo’s year-end financial position was stronger. He added that the new year had also started well for the iron ore industry.
The dividend reinstatement comes despite Ferrexpo shares losing half their value over the past 12 months. The company said it would restart a second pellet line to meet export demand amid signs of increased appetite for iron ore pellets.
