Ferrexpo plc, a mining and ore processing company with its main assets in Ukraine, produced 2,041,789 metric tons of pellets in January–September of this year, which is 27% lower than in January–September of last year (2,808,594 metric tons), and in the third quarter, it reduced production of this product by 24% compared to the second quarter—to 656,650 thousand metric tons from 860,213 thousand metric tons.
According to the company’s press release on Wednesday, total production of marketable products (pellet and iron ore concentrate) for the first nine months of 2026 fell by 54% compared to the first nine months of 2025—to 2,336,135 metric tons. In particular, production of premium-grade Fe67% concentrate totaled 294,346 thousand metric tons, compared to 2,259,294 thousand metric tons (a decline of 87%). The company also produced 1,737,398 thousand metric tons of premium-grade pellets (a 36% decrease) and 304,391 thousand metric tons of DR pellets (compared to 81,787 thousand metric tons produced in the first nine months of 2025).
The press release notes that Ferrexpo remains committed to ensuring the safety and well-being of its personnel and continues to take extensive measures to protect employees, their families, and local communities.
At the end of August 2026, the Group recorded an increase in the Lost-Time Injury Frequency Rate (LTIFR)—calculated as a 12-month rolling average—to 0.28 (compared to 0.18 at the end of June); however, this rate remains below the five-year average (0.44). August 2026 marked the sixth consecutive year without a single fatality at the
Group’s production facilities; however, as reported in July 2026, an incident occurred involving a chartered vessel carrying Ferrexpo cargo: it was struck and damaged by Russian drones, resulting, unfortunately, in the death of a crew member.
A liquidity shortage, limited logistics capacity, and a temporary halt in production led to a decline in output during the reporting quarter: total production in the third quarter amounted to 780,000 metric tons, down from 963,000 metric tons in the second quarter.
The share of high-quality DR (direct reduction) pellets in the overall product mix remained stable throughout the quarter, and in quantitative terms, their production volume from the beginning of the year through the end of September increased by 272% compared to the same period last year.
On September 4, 2026, the Group announced that it had successfully raised approximately $100 million in capital; this decision received overwhelming support from shareholders on September 21, 2026. The funds raised strengthened the company’s balance sheet and enabled it to resume production.
The Group continues to actively manage its cash expenditures. These measures include reducing staff working hours, steadily cutting back on purchases of goods and services, and suspending all non-critical capital expenditures (CapEx), overhead costs, and expenditures on corporate social responsibility programs. The Group remains in the final stages of negotiations with a reputable trade finance provider regarding a secured credit line (as previously reported); however, the timing of the finalization of the definitive documents has been affected, in particular, by prolonged logistical disruptions on the Group’s Black Sea export route and, as a result, the Group’s ability to deliver products to the trade finance provider under the relevant purchase and sale agreement. Since the potential financing agreement has not yet been concluded, there is no certainty that it will be signed on the terms described or concluded at all.
Commenting on the Group’s performance, Acting Chairman of the Board of Directors Lucio Genovese noted: “In September, we were pleased to note that Ferrexpo’s shareholders approved, by an overwhelming majority, a $100 million capital raise. This process took place under challenging conditions. Over the summer months, the economic situation in Ukraine deteriorated, which, combined with various legal proceedings against the group, posed a serious test of investors’ willingness to invest in Ukraine. Despite this, we managed to successfully complete the capital raise, receiving subscriptions that exceeded the planned amount.”
According to him, raising funds was necessary because the decision by Ukrainian tax authorities to delay VAT refunds significantly weakened our cash position. Limited liquidity forced us to cut production volumes and implement even stricter cost-cutting measures. “We took extensive measures to address this situation, including making difficult decisions to place employees on mandatory leave or switch them to a reduced workweek. We recognize that this has been a source of immense stress for our employees amid already difficult circumstances, and that the resulting reductions in wages, procurement volumes, and tax payments have had a broader socioeconomic impact on the community,” the press release states.
It also notes that, despite our significant efforts, it eventually became clear that additional funds were needed to maintain production, as well as to preserve jobs and livelihoods.
“Raising funds has allowed us to resume production, albeit at significantly lower volumes compared to the period before the full-scale invasion. Due to significant restrictions on access to Ukrainian ports, opportunities to increase exports—and thus production capacity—are currently limited. Due to the temporary suspension of production in
August and the launch of a single pellet production line in September, total production for the quarter amounted to just under 800,000 metric tons,” the press release states.
As previously reported, Ferrexpo produced 3,221,461 metric tons of pellets in 2025, which is 47% lower than in the previous year (6,070,541 metric tons). At the same time, total production of marketable products (pellets and iron ore concentrate) for 2025 decreased by 9%—to 6,141,759 metric tons. Specifically, production of marketable concentrate amounted to 2,920,298 metric tons, compared to 709,803 metric tons, respectively. The company also produced 81,787 thousand metric tons of DR pellets (489,720 thousand metric tons in 2024) and 3,139,674 thousand metric tons of premium-grade pellets (a 44% decrease).
In 2024, Ferrexpo increased pellet production by 58% compared to 2023—to 6,070,541 metric tons from 3,845,325 metric tons. In 2023, the company produced 3.845 million metric tons of pellets, which is 36.5% less than in 2022.
Ferrexpo owns a 100% stake in Yeristivsky GZK LLC, a 99.9% stake in Bilanivsky GZK LLC, and 100% of the shares in Poltavsky GZK PJSC.
