Ferrexpo Plc (LON:FXPO), a producer and exporter of premium iron ore products, has provided the following update ahead of its Annual General Meeting, which is being held today.
The Group continues to operate under highly constrained conditions as a result of the war in Ukraine and related operational and financial challenges. Despite significant interruptions to the operating environment in Ukraine, the Group continues to run one of its four pellet lines and export its products to European and Middle East customers, which is a testament to the commitment and skillset of its workforce and their ability to mitigate daily challenges.
The Group remains focused on managing its costs and optimising its sales mix in order to maximise its working capital runway. As previously announced, the Group took the decision to sell its owned transhipping vessel “Iron Destiny”, for which it has received net proceeds of US$7.7 million. Based on current production rates, current and forecast energy prices over the next quarter, and taking into account the optimised sales mix, the Group now forecasts that it has sufficient net accessible cash less funds blocked at Mbaer bank beyond the previously stated end of August 2026. This estimate remains subject to the volatility of iron ore pricing, operating expenses (including energy costs) and assumes there are no material changes to the operating conditions of the Group, including energy supply, no restrictive measures are put in place by the insolvency manager appointed within Ferrexpo Poltava Mining and there are no final, non-appealable negative outcomes to the various legal and administrative proceedings to which the Group is currently subject.
Update on Funding Options
The Group continues to actively advance the workstreams to be in a position to launch an equity fundraise of at least US$100 million. As set out in the Company’s previous announcements, the Group remains of the view that an equity capital raise is the most viable solution in the timeframe required. At this stage, there can be no certainty that the Group will be successful in concluding such funding options. If the withholding of VAT refunds and funding issues are not resolved in sufficient time, this could give rise to material negative consequences for the Group. The Intended Fundraise, if implemented, will be the subject of a further announcement, including the full terms and conditions of the Intended Fundraise.
Production Report for Q2 2026
The Group will provide a further update in its Q2 production update, scheduled for 15 July 2026.
