In 2024, Ferrexpo, a mining company with assets in Ukraine, increased its total sales of iron ore products by 64% year-on-year to 6.8 million tons, and by 26% to Europe, to 5.3 million tons.
According to the company’s annual report, sales grew mainly due to the reopening of Ukrainian Black Sea ports, which enabled the group to increase sales to customers in the Middle East and Asia using larger vessels, as well as to switch some sales to European customers from more expensive rail and barges to lower-cost sea routes.
It is also noted that last year, the company’s relations with premium European customers deepened with the signing of several memorandums of understanding to explore the sale of DR pellets (direct reduced iron), improve the quality of pellets and study the decarbonization of logistics routes. Memorandums of understanding were also signed with customers in Asia and MENA.
In 2025, the company intends to continue exporting its products from Ukrainian Black Sea ports as long as it is safe and economically viable, meaning that while Europe remains the main regional market, the group will also continue to sell to China and other Asian countries, as well as to its growing customer base in MENA.
According to the report, despite numerous logistical challenges, including the transportation of goods in the Odesa region, the company managed to ensure a stable transportation process during 2024. 84% of all domestic rail transportation was carried out by the group’s own railcar fleet, and 16% was carried out by third-party operators.
According to Viktor Lotous, Chairman of the Board of Poltava Mining and Head of Ferrexpo’s operations in Ukraine, our own repair facilities played an important role in ensuring uninterrupted transportation. The company’s existing facilities fully cover the needs for maintenance, repair and re-equipment of railcars, which reduces dependence on third-party contractors and ensures a high level of rolling stock availability.
An important factor that may affect future costs is the initiative of UZ to index tariffs, which is likely to increase transportation costs. Ferrexpo is closely analyzing the potential impact of this decision, considering ways to minimize costs, Lotous emphasized in the report.
He also informed that mining operations at Bilanivsky GOK were suspended due to the expiration of the license on December 20, 2024, but due to the extension of martial law in Ukraine, the validity of the Special Permit No. 3572 for Bilanivsky deposit was automatically extended until the end of martial law (May 9, 2025). It is assumed that another six months will be available to apply for an extension.
According to him, in early 2024, the reserves estimate of the Belanivske field was updated, and the results were approved by the State Commission on Mineral Resources. According to the results of the license revaluation, the area of the Belanivske deposit was reduced from 989 to 716 hectares, the area of the Belanivske contour of the deposit was reduced, poor ores were written off, and the balance sheet mineral reserves were reduced from 1706 million tons to 614 million tons. In February 2025, the company received an updated special permit No. 3572 for the Belanivske deposit.
The company continues to cooperate with government agencies to extend the license for the Belanivske field due to the extension of martial law and amendments to the Subsoil Code of Ukraine to ensure the possibility of extending the special permit.
The CEO also said that programs to increase ore production and decarbonization remain long-term goals. The initial first wave program to increase production capacity by 3 million tons per year is currently under review.
“Desktop work, including optimization studies, is ongoing. However, wherever possible, investments have been postponed. Nevertheless, despite the ongoing war, various capital expenditure projects are aimed at improving product quality and efficiency. For example, the company has introduced a pelletizing technology at the pelletizing plant to strengthen finished pellets, while increasing productivity and reducing iron losses to save costs and reduce emissions,” Lotus stated.
As reported earlier, Ferrexpo lost a case in the Supreme Court to reinstate one of its licenses for exploration of the Galeshchyna (Kremenchuk) ferruginous quartzite deposit after Bilanivsky GOK was sanctioned.
Ferrexpo is an iron ore company with assets in Ukraine. Ferrexpo owns 100% of Poltava Mining, 100% of Yeristovo Mining and 99.9% of Bilanivsky GOK.
Ferrexpo plc, a mining company with major assets in Ukraine, produced 1 million 347.749 thousand tons of pellets in January-March this year, down 26% year-on-year (1 million 813.973 thousand tons).
According to the company’s press release on Monday, the total production of marketable products (pellets and iron ore concentrate) in 1Q2025 increased by 3% compared to 1Q2024 to 2 million 125.467 thousand tons. In particular, the production of iron ore concentrate amounted to 777,718 thousand tons compared to 240,516 thousand tons in 1Q2024. The company also produced 81,879 thousand tons of DR pellets (not produced in Q1-2014), 1 million 105,049 thousand tons of premium pellets (down 36%) and 160,913 thousand tons of other pellets (up 95%).
The press release notes that during the quarter, the group operated two pelletizing lines (out of four) in addition to producing commercial concentrate, however, due to the recently announced suspension of VAT refunds, operations were reduced to one line.
Commenting on the group’s performance, Lucio Genovese, interim CEO, stated that in the first quarter of 2025, total commercial production was the highest quarterly figure since the start of the full-scale invasion in February 2022. This is due to increased production of high-grade concentrates sold to customers in Asia, combined with stable production of premium products. We
“The increase in production, however, did not translate into improved earnings due to persistently high production costs, in particular imported electricity, and deteriorating premiums and prices for iron ore pellets. The environment in which we operate is becoming increasingly challenging. In March, the Ukrainian tax authorities announced their decision to suspend VAT refunds for January 2025 to our two main operating subsidiaries, PGOK and Yenakiieve Iron Ore Enrichment, in the total amount of UAH 512.9 million (approximately $12.5 million). This suspension of VAT refunds, which is significant, resulted in a decrease in available liquidity to finance operations. This has forced us to immediately reduce our operations to one pellet production line and implement significant cost-cutting measures across the business, impacting labor, mining and processing, repair and maintenance, capital expenditures, and humanitarian and social funding,” Genovese emphasized.
According to him, this will have a broader impact on the economic and social fabric of the 50,000-strong city of Horishni Plavni, where the company is the main employer, and the Poltava region and the 3,000 small and local businesses that depend on Ferrexpo. It will also have an impact on the national economy through reduced taxes and fees, payments to suppliers, including energy suppliers, UZ and ports.
“We continue to appeal to the Ukrainian government and other stakeholders to restore VAT refunds so that we can maintain our business at higher operating levels, support our workforce and the integrity of our operations,” the top manager emphasized.
As reported earlier, Ferrexpo increased pellet production by 58% in 2024 compared to 2023, up to 6 million 70.541 thousand tons from 3 million 845.325 thousand tons. In the fourth quarter of 2024, the company produced 1 million 503.373 thousand tons of pellets, up 18% quarter-on-quarter (1 million 269.727 thousand tons).
At the same time, the total production of marketable products (pellets and iron ore concentrate) in 2024 increased by 66% compared to 2023, to 6 million 889.879 thousand tons from 4 million 152.028 thousand tons. In particular, the production of salable concentrate amounted to 819,338 thousand tons compared to 306,703 thousand tons in 2023. The company also produced 489,720 thousand tons of DR pellets, 4 million 984,990 thousand tons of premium pellets and 595,831 thousand tons of other pellets.
In 2023, Ferrexpo produced 3.845 million tons of pellets, which is 36.5% less than in 2022.
Ferrexpo owns a 100% stake in Yeristovo Mining, 99.9% in Bilanivsky GOK and 100% in Poltava Mining.
The share price of Ferrexpo plc, a mining company with major assets in Ukraine, fell by 25.5% to 80 pence after the stock exchange announced on February 4 that law enforcement agencies had filed a civil lawsuit against the company’s subsidiary Poltava Mining and Processing Plant (PGOK) and its CEO for damages in favor of the Ukrainian state in the amount of UAH 157 billion (about $3.76 billion).
According to the London Stock Exchange’s website, in the first minutes after the company published this information, the shares fell by more than half – by 52%, to 51.5 pence, but by the end of the day, after several ups and downs, their price rose to 80 pence.
Currently, the spread on the company’s shares has widened to 57 pence to buy and 130 pence to sell, according to the stock exchange. According to Ferrexpo’s February 4 publication, the company received information that the National Police completed a pre-trial investigation on January 16, 2025, into the sale of iron ore pellets and sent the case to the court of first instance.
“The initial charges of illegal sale of waste have been transformed into charges of illegal extraction and sale of subsoil (minerals other than iron ore), which allegedly caused environmental damage. The company completely rejects these allegations on the grounds that there was no illegal mining,” Ferrexpo said.
The company emphasized that the plant extracts iron ore under a mining license. The iron ore is then processed to produce iron ore pellets.
As a result of these processes, any waste that remains is disposed of in accordance with best mining practices and environmental standards. “Based on the information received by the Group and after consultations with
Ukrainian lawyers, PGOK believes that these accusations and claims are unfounded and intends to firmly defend its position in the Ukrainian courts,” Ferrexpo said and added that the Group’s operations remain unchanged.
Earlier it was reported that other investigative actions are being taken against the management of the Mining and Processing Plant. In particular, in September 2023, the National Police investigators notified Viktor Lotous, Chairman of the Board of the Mining and Processing Plant, of suspicion of illegal mining worth UAH 157 billion. Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of shares in Poltava Mining, 100% of shares in Yeristovo Mining and 99.9% of shares in Bilanivsky Mining. Ferrexpo’s net profit for the first half of 2024 amounted to $54 million, up 104% compared to the first half of 2023, while revenue increased by 64% to $549 million. Over the past year, Ferrexpo’s share price has fluctuated between 38.15 pence and 124 pence, with a current capitalization of GBP478.5 million, although before the war, in the summer of 2021, during the global shortage of mining raw materials, the share price reached a maximum of 480.8 pence.
Ferrexpo plc, a mining company with major assets in Ukraine, produced 6 million 70.541 thousand tons of pellets in 2024, up 58% from 3 million 845.325 thousand tons in 2023.
According to a press release on Thursday, Ferrexpo produced 1 million 503.373 thousand tons of pellets in the fourth quarter of 2024, up 18% quarter-on-quarter (1 million 269.727 thousand tons).
At the same time, the total production of marketable products (pellets and iron ore concentrate) in 2024 increased by 66% compared to 2023, to 6 million 889.879 thousand tons from 4 million 152.028 thousand tons. In particular, the output of saleable concentrate amounted to 819,338 thousand tons compared to 306,703 thousand tons in 2023. The company also produced 489,720 thousand tons of DR pellets, 4 million 984,990 thousand tons of premium pellets and 595,831 thousand tons of other pellets.
The press release notes that during the fourth quarter, the group successfully operated two pelletizing lines (out of four) despite power outages, and paid special attention to the production of higher quality pellets and high-quality concentrate.
As of December 31, 2024, the group’s net cash position was approximately $99 million (December 31, 2023: $108 million) with minimal lease obligations, subject to possible adjustments at the end of the year, and no debt.
The company was re-admitted to the FTSE 250 index at the end of December.
Commenting on the group’s performance, Lucio Genovese, interim chairman, said that in 2024 the company had its best annual production performance since the start of the full-scale invasion in 2022.
“The increase in production reflects our ability to regain access to Ukraine’s Black Sea ports and resume exports to customers in the Middle East and North Africa (MENA) and Asia. In total, 37 ocean-going vessels were loaded in 2024, including 32 vessels from Ukraine and five from other ports, compared to only 19 (from Romania) in 2023. The higher level of production also reflects the flexibility we have built into the business, producing a wider range of products,” Genovese said.
He also emphasized one of the highlights of 2024 – a new annual record for DR pellets production. These higher quality pellets bring higher revenues to the company, which is especially important as the group continues to face high production costs.
In addition, production of high quality pellets and concentrate increased in the fourth quarter, which helped to reduce the fixed cost base as production levels increased.
“The group’s ability to produce a diverse range of products and sell them to a broader customer base has helped in the current environment. However, the continued impact of lower iron ore prices and higher raw material costs put pressure on profitability in the fourth quarter. Due to further attacks on Ukraine’s power grid, we continue to have to import electricity from the EU at higher tariffs,” Genovese emphasized.
As reported, Ferrexpo produced 3.845 million tons of pellets in 2023, down 36.5% from 2022.
Ferrexpo owns a 100% stake in Yeristovo Mining, 99.9% in Bilanivsky GOK and 100% in Poltava Mining.
Ferrexpo plc, a mining company with major assets in Ukraine, produced 4 million 567.168 thousand tons of pellets in January-September this year, up 41.9% year-on-year (3 million 218.273 thousand tons).
According to a press release on Monday, Ferrexpo produced 1 million 269,727 thousand tons of pellets in the third quarter of this year, down 14.4% from the previous quarter (1 million 483,468 thousand tons).
At the same time, the total production of commercial products (pellets and iron ore concentrate) in the first nine months of 2014 increased by 47.5% compared to the same period in 2023, to 5 million 125.034 thousand tons from 3 million 474.860 thousand tons. In particular, the production of commercial concentrate amounted to 557.866 thousand tons against 256.587 thousand tons in January-September 2023.
In addition, it is specified that the company, in particular, produced 326.168 thousand tons of DR pellets in the first nine months of 2014 (it did not produce any in the first nine months of 2013), 3 million 780.610 thousand tons of premium pellets and 460.390 thousand tons of other pellets.
The press release notes that during the quarter, the Group successfully operated one or two pelletizing lines (out of four), with a focus on producing higher quality products. DR pellets production continued during the third quarter, with a total of three deliveries to two customers.
Commenting on the Group’s performance, Lucio Genovese, Interim Executive Chairman, stated that the third quarter was a very challenging operational and macroeconomic environment for the company.
“As we emphasized in our interim results, the requirement to import 80% of our electricity from our western neighbors remains in place, and the resulting high tariffs continue to have a negative impact on our costs. The situation is further complicated by higher shipping rates and additional costs for war risk insurance,” Genovese said.
According to him, to mitigate the pressure on profitability, the group’s strategy was to focus on selling higher quality iron ore products to customers in close geographical proximity. This involved expanding the customer base and selling premium DR pellets in the MENA region.
The top manager emphasized that the ability to quickly adapt to modern challenges is a testament to the flexibility built into the operating model. This allowed the company to slightly reduce the impact of both the aforementioned factors and lower iron ore prices, when the fall in the 65% Fe benchmark price briefly tested price support levels of $100/tonne during the quarter, bottoming out at levels last seen in 2022.
At the same time, Genovese emphasized some positive changes in the market at the end of the reporting period: prices began to recover amid improved sentiment caused by the announcement of economic stimulus measures in China.
For his part, Group CFO Nikolay Kladiev noted that the combined effect of much lower iron ore prices and higher production costs put significant pressure on earnings in the third quarter.
“The high electricity tariffs that I pointed out in the interim period continue to grow and increase our C1 costs compared to the initial period. This year we also continued to see higher freight rates and additional war risk insurance premiums. In response, we have sought to contain costs wherever possible and manage our cash position, which remained at around $100 million at the end of the third quarter,” explained the CFO.
He also said that in the last days of September, Chinese stimulus measures, including the lifting of restrictions on home purchases, provided long-awaited support for iron ore prices.
“The pessimism about iron ore prices seems to have subsided for now, but the recent volatility in the third quarter does not provide any assurance that prices will remain at this level or improve further. We will continue to maintain a vigilant approach to our financial and operational performance for the remainder of the year,” Kladiev concluded.
As reported earlier, Ferrexpo produced 3.845 million tons of pellets in 2023, down 36.5% from 2022.
Ferrexpo owns a 100% stake in Yeristovo Mining, 99.9% in Bilanivsky GOK and 100% in Poltava Mining.
Ferrexpo, a mining company with assets in Ukraine, increased its total sales of iron ore products by 85% year-on-year to 3.8 million tons in January-June this year.
According to the company’s interim report, out of 3.8 million tons, 1.8 million tons were exported through Ukrainian Black Sea ports.
Total commercial production in the first six months of 2024 increased by 75% to 3.7 million tons, including 3.3 million tons of pellets and 0.4 million tons of commercial concentrate.
C1’s production cost in 1H2024 increased to $79/tonne due to higher energy costs, expansion of mining activities, maintenance and repairs, partially offset by the positive effect of currency devaluation and cost-saving measures, the report explains.
It also notes that due to difficulties with electricity supply, the company is addressing this issue. At the same time, electricity costs in June increased by about $11/tonne at C1’s cost compared to the previous month. “C1 Group’s costs increased to $78.8/tonne in H1 2024 due to higher electricity prices offset by a slight devaluation of the hryvnia and the effect of a more favorable fixed exchange rate and increased production volumes,” the report explains.
Total distribution expenses in the reporting period increased to $148 million compared to $74 million in the first half of the previous year due to sales growth. And it is noted that maritime logistics routes are usually the cheapest and most efficient way to deliver the group’s products to its customers. As a result, sea sales increased by 1.7 million tons to 2.1 million tons in the first half of 2024 compared to 0.4 million tons in the same period of 2023.
In 1H2024, Ferrexpo reduced its capex by 5% year-on-year to $55 million from $58 million as a result of a 64.2% increase in revenue to $548.535 million from $334.010 million. EBITDA increased by 24.1% to $79.043 million from $63.685 million. Cash at the end of the first half of this year amounted to $115.131 million compared to $134.903 million at the end of June 2023.
In January-June 2024, Ferrexpo doubled its net profit compared to the same period last year to $55.490 million from $27.009 million. Pre-tax profit for the period amounted to $75.671 million, while in January-June 2023 it was $35.446 million.
In 2023, Ferrexpo reduced its capital investments by 37.1% to $101.247 million compared to $161.010 million in 2022 and $361 million in 2021.
Ferrexpo is an iron ore company with assets in Ukraine. Ferrexpo owns 100% of shares in Poltava Mining, 100% of shares in Yeristovo Mining and 99.9% of shares in Bilanivsky Mining.
