- Ferrexpo
- 25 September 2026 08:45:35
Source: Sharecast
The London-listed, Switzerland-based producer of iron ore pellets said total commercial production slumped 54% in the six months to 30 June, to 1.556m tonnes, while revenues tumbled 57% to $196m. The underlying loss before interest, tax, depreciation and amortisation was $4m, compared to EBITDA of $4m a year previously.
The company’s cash position was $30m as at June end, compared to $58m a year previously.
The company has been rocked by the outbreak of war in Ukraine, where it operates. Attacks by Russia on the country’s electricity generation and transmission infrastructure earlier this year forced it to temporarily suspend operations earlier this, with only limited production able to resume.
In addition, the Ukrainian tax authorities have withheld VAT refunds, as part of sanctions on Kostyantyn Zhevago. The billionaire is one of three beneficiaries of a trust that owns Fevamotinico, Ferrexpo’s largest shareholder.
The company had been in danger running out of cash before the end of the year. However, shareholders backed an emergency $100m fundraising earlier this week.
Lucio Genovese, interim executive chair, said: “The first six months of 2026 have been another exceptionally difficult period.
“The equity fund raise has materially strengthened the group’s liquidity position, providing additional financial resilience and greater flexibility to manage the continuing operational and financial pressures facing the business.
“The additional capital does not, however, remove the underlying challenges as a result of the continuing withholding of VAT refunds, the war in Ukraine, constraints on logistics and energy infrastructure and the need to maintain disciplined management of cash and working capital.”
Nikolay Kladiev, chief financial officer, added: “Our priority is to use the additional financial flexibility prudently to support ongoing operations and preserve the group’s ability to increase production when operating conditions allow.”
As at 0830 BST, shares in Ferrexpo were up 1% at 29.08p. The stock had been suspended from May until early September.
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