Business
Announcement of Shareholder Returns Policy
Announcement of Shareholder Returns Policy.
About this update from Ferrexpo Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4577S\n Ferrexpo PLC\n 16 November 2021\n \n \n \n \n \n \n \n 16 November 2021 \n \n \n \n Ferrexpo plc\n \n \n (\"Ferrexpo\" or the \"Company\" or the \"Group\")\n \n \n \n \n \n \n Announcement of Shareholder Returns Policy\n \n \n \n \n Ferrexpo plc (LSE: FXPO), the world's 3rd largest exporter of high grade iron ore pellets to the global steel industry, is pleased to announce the approval of a formal shareholder returns policy by the Group's Board of Directors (\"Board\").\n \n \n \n \n The approved policy is to target a payout of 30% of free cash flow[1], forming the basis of the Group's dividend, payable in respect of the Group's performance in a financial year. The Board will continue to evaluate additional shareholder returns, in the form of special dividends, at times of strong financial and operational performance of the Group. Ferrexpo's shareholder returns policy, as well as the declaration and payment of dividends, is at the discretion of the Board and will depend on the Group's financial results, cash requirements, financial outlook, the economic environment both locally within Ukraine and on a global basis, and other factors deemed relevant by the Board.\n \n \n \n \n \n \n The new policy reflects the Group's continued commitment to sustainable shareholder returns, balanced alongside capital investment for future growth, and represents a continuation of the approach applied by the Board since the Group's listing in 2007. The Board believes that free cash flow is the most appropriate financial metric for Ferrexpo to use in its shareholder returns policy given that it is net of capital investment and financing activities, and therefore does not restrict the Group from continuing its focus on investing in it's operations in Ukraine and its wider logistics network. By adopting a formal policy at this point in time, the Board believes this is a clear demonstration of the Group's strong commitment to shareholder returns throughout the commodity cycle.\n \n \n \n \n \n For 15 years since listing, the Group's Board has maintained a consistent and balanced approach to capital allocation throughout the commodity cycle, both investing in future growth and providing shareholder returns. The Group has met the target threshold for shareholder...