Ferrexpo plc, a mining company with its main assets in Ukraine, produced 3 million 221,461 thousand tons of pellets in 2025, which is 47% less than in the previous year (6 million 70,541 thousand tons).
According to the company’s press release on Wednesday, total production of commercial products (pellets and iron ore concentrate) in 2025 decreased by 9% to 6 million 141,759 thousand tons. In particular, the output of commercial concentrate amounted to 2 million 920,298 thousand tons against 709,803 thousand tons, respectively. The company also produced 81,787 thousand tons of DR pellets (489,720 thousand tons in 2024) and 3 million 139,674 thousand tons of premium pellets (a decrease of 44%).
The press release notes that at the end of the year, the intensity and frequency of rocket and drone attacks on Ukraine’s energy, transport, and port infrastructure increased. Disruptions to energy supplies and logistics channels resulted in lower-than-planned production in the fourth quarter. Total production for the quarter amounted to 1.1 million tons, including 0.7 million tons of premium Fe67% iron ore concentrate and 0.4 million tons of premium iron ore pellets.
It is noted that during 2025, the group successfully adapted to changes in market demand, increasing production of premium iron ore concentrate to a record 2.9 million tons, which is 48% of total production compared to 10% in 2024.
The group continued to actively manage its working capital and costs in challenging operating conditions last year. This included reducing working hours for employees, continuing to reduce purchases of goods and services, and further suspending all non-essential capital expenditures, overhead costs, and corporate social responsibility (CSR) expenses. The suspension of VAT refunds continued during the quarter, and the total amount of unpaid VAT as of the end of November 2025 was $69 million. If VAT continues to be unreimbursed, the total amount is projected to increase to approximately $74 million as of the end of December 2025.
As of December 31, 2025, the group’s net cash position was approximately $47 million (compared to $50 million as of June 30, 2025), with lease liabilities subject to potential final adjustments at the end of the year and no debt.
Commenting on the group’s performance, interim CEO Lucio Genovese noted that the last quarter of 2025 was one of the most challenging for the business and employees since the full-scale invasion of Ukraine. Rocket and drone attacks on regional energy infrastructure led to interruptions in electricity supply to businesses.
“Our operational teams worked hard to restore production with limited available capacity. Despite all these challenges, total production for the quarter exceeded 1 million tons, and for the second year in a row, production exceeded 6 million tons. This is more than 50% of our pre-war capacity and acceptable production figures, considering all the challenges we have faced during the fourth year of the war,” Genovese said.
However, he added that since December, the group’s export capabilities have been limited due to attacks in the Black Sea, and until repairs are completed and safe access to the sea is restored, the company will again focus on rail exports. At the same time, although this logistics channel is open, the electrified state railway network has less capacity. Therefore, the switch to diesel locomotives means that locomotives need more time to deliver wagons to the western border, and due to slower travel and turnaround times, the group has leased additional wagons from third-party suppliers, which incurs additional costs.
“Thanks to the capacities that state-owned utilities can provide us with, we are currently operating one pellet production line with additional concentrate production and are able to produce and export our high-quality iron ore pellets to serve our European customers. When the power supply, rail and port connections are restored, it will be possible to increase the production and sale of concentrate in Asian markets,” predicts the acting chairman.
The company hopes for an end to the war, “but we must remain vigilant, we must continue to work on the safety of our people, while making efforts to recover withheld VAT and ensure the integrity of our assets.”
As reported, Ferrexpo produced 2 million 808.594 thousand tons of pellets in the first nine months of 2025, which is 38.5% less than in the same period of 2024 (4 million 567.168 thousand tons). Total production of commercial products (pellets and iron ore concentrate) for the first nine months of 2025 increased by 0.9% to 5 million 67,888 thousand tons. In particular, the output of commercial concentrate amounted to 2 million 259,294 thousand tons against 457,264 thousand tons, respectively. The company also produced 81,787 thousand tons of DR pellets (326,168 thousand tons in the first nine months of 2024) and 2 million 726,807 thousand tons of premium pellets (a decrease of 35.7%).
In the first half of 2025, Ferrexpo produced 2 million 169,631 thousand tons of pellets, which is 34.2% less than in January-June 2024 (3 million 297,441 thousand tons). Total production of commercial products in the first half of 2025 decreased by 9% compared to the first half of 2024, to 3 million 393,135 thousand tons. In particular, the output of commercial concentrate amounted to 1 million 223,504 thousand tons against 429,865 thousand tons, respectively. The company also produced 81,787 thousand tons of DR pellets (in the first half of 2024 – 162,645 thousand tons) and 2 million 87,844 thousand tons of premium pellets (a decrease of 33.4%).
In Q1 2025, Ferrexpo produced 1 million 347.749 thousand tons of pellets, which is 26% less than in January-March 2024 (1 million 813.973 thousand tons). At the same time, total production of commercial products (pellets and iron ore concentrate) in Q1 2025 increased by 3% compared to Q1 2024, reaching 2 million 125,467 thousand tons. In particular, the output of commercial concentrate amounted to 777,718 thousand tons against 240,516 thousand tons in Q1 2024. The company also produced 81,879 thousand tons of DR pellets (not produced in Q1 2024), 1 million 105,049 thousand tons of premium pellets (a decrease of 36%), and 160,913 thousand tons of other pellets (an increase of 95%).
In 2024, Ferrexpo increased its production of pellets by 58% compared to 2023, from 3 million 845,325 thousand tons to 6 million 70,541 thousand tons. In 2023, the company produced 3.845 million tons of pellets, which is 36.5% less than in 2022.
Ferrexpo owns 100% of Yeristovsky GOK LLC, 99.9% of Bilanovsky GOK LLC, and 100% of Poltavsky GOK PJSC.
The National Agency for Asset Tracing and Management (ARMA) is holding consultations on obtaining management projects for the seized 49.5% stake in Poltava Mining and Processing Plant (PGZK) of the mining company Ferrexpo plc, whose main assets are located in Ukraine.
According to ARMA, preliminary market consultations have been announced through the receipt of management program proposals or commercial offers and/or other documents, in accordance with paragraph 2 of Section II of the Methodological Recommendations on the sequence of actions of ARMA employees in the preparation and conduct of competitive selection of asset managers, approved by ARMA Order No. 223 of September 29, 2023 No. 223 (as amended by Order No. 54 of February 14, 2025), within the framework of the competitive selection of asset managers.
It is specified that the seized asset is 49.5% of the authorized capital of Poltava Mining and Processing Plant PJSC in the form of 153.450 million ordinary registered shares. The basis for the transfer of the asset to ARMA is the ruling of the investigating judge of the Pechersky District Court of Kyiv dated February 28, 2025, in case No. 757/9095/25-k.
Potential managers may be: a legal entity or an individual entrepreneur registered in accordance with the procedure established by law as business entities (Article 1033 of the Civil Code of Ukraine).
Information on the expected results of asset management may be submitted in any form by 3:00 p.m. on October 24, 2025.
As reported, the Pechersky District Court of Kyiv granted the request of the Prosecutor General’s Office of Ukraine to transfer 49.5% of the shares of one of the main assets of the companies, Poltava Mining and Processing Plant, to ARMA.
The DBR statement noted that the transfer of corporate rights of PGZ is related to ongoing court cases in Ukraine regarding the alleged embezzlement of funds from the Finance and Credit Bank, which previously belonged to Kostyantyn Zhevago and was declared insolvent in 2015.
In turn, Ferrexpo plc considers the transfer of 49.5% of Poltava Mining’s corporate rights to ARMA a violation of international treaties, in particular, international investment agreements between Ukraine and the United Kingdom and Ukraine and Switzerland. The company said it would initiate international arbitration against Ukraine.
Ferrexpo is an iron ore company with assets in Ukraine. Ferrexpo owns 100% of the shares of Poltava Mining, 100% of Yeristovsky Mining, and 99.9% of Bilanovsky Mining.
Ferrexpo plc, a mining company with its main assets in Ukraine, produced 2 million 808,594 thousand tons of pellets in January-September this year, which is 38.5% less than in the same period last year (4 million 567,168 thousand tons).
According to the company’s press release on Monday, total production of commercial products (pellets and iron ore concentrate) for the first nine months of 2025 increased by 0.9% to 5 million 67,888 thousand tons. In particular, the output of commercial concentrate amounted to 2 million 259,294 thousand tons against 457,264 thousand tons, respectively. The company also produced 81,787 thousand tons of DR pellets (326,168 thousand tons in the first nine months of 2024) and 2 million 726,807 thousand tons of premium pellets (a decrease of 35.7%).
The press release notes that due to the ongoing suspension of VAT refunds, the total amount of VAT withheld currently stands at $47 million. Due to the resulting reduction in financial liquidity, the group was forced to reduce production to a single rolling mill line, but was able to increase production of low-alumina Fe67% concentrate to meet demand from Chinese customers.
As a result, total commercial production for the quarter reached 1.51 million tons, up 3% from 1.46 million tons in the second quarter and down 29% from 2.1 million tons in the first quarter.
It is also noted that the group continued to work actively to reduce overall cash expenditures. This included reducing working hours for employees, continuously reducing purchases of goods and services, and suspending all non-essential capital expenditures, overhead costs, and corporate social responsibility (CSR) expenses.
Commenting on the group’s performance, interim CEO Lucio Genovese noted that the third quarter of 2025 was the first quarter in which the company fully felt the impact of the Ukrainian tax authorities’ decision to suspend VAT refunds to Ukrainian subsidiaries.
“Despite the further reduction of pelletizing capacity to one line, we achieved a total production volume of 1.5 million tons for the quarter. Production for the first nine months of 2025 was comparable to the same period last year, totaling 5.1 million tons. High demand from Chinese customers for our high-quality low-alumina concentrates allowed us to increase production by 36% compared to the previous quarter and almost four times since the beginning of the year compared to the same period last year,” the top manager said.
At the same time, he pointed out that the tax authorities’ refusal to refund VAT remains the most important problem for the business. He recalled that the group had received official notifications from the tax authorities about the suspension of VAT refunds from March 2025 for the period beginning in January 2025. Similar notifications were received every month until July, and the total amount of unrecovered VAT for this period is $47 million. If VAT refunds are also suspended for August and September, the estimated total amount of unrecovered VAT will be $58 million.
At the same time, cost-cutting measures introduced in the second quarter continued in the third quarter. At the end of September, approximately 20% of employees were on leave or had reduced working hours.
During the third quarter, VAT issues were exacerbated by Russia’s intensified air attacks on Ukraine’s railway network and domestic energy infrastructure. These issues create additional challenges in managing operations and logistics.
Ferrexpo produced 2 million 169,631 thousand tons of rolled products in the first half of 2025, which is 34.2% less than in January-June 2024 (3 million 297,441 thousand tons). Total production of commercial products in the first half of 2025 decreased by 9% compared to the first half of 2024, to 3 million 393,135 thousand tons. In particular, the output of commercial concentrate amounted to 1 million 223,504 thousand tons against 429,865 thousand tons, respectively. The company also produced 81,787 thousand tons of DR pellets (in the first half of 2024 – 162,645 thousand tons) and 2 million 87,844 thousand tons of premium pellets (a decrease of 33.4%).
In Q1 2025, Ferrexpo produced 1 million 347,749 thousand tons of pellets, which is 26% less than in January-March last year (1 million 813,973 thousand tons). At the same time, total production of commercial products (pellets and iron ore concentrate) in Q1 2025 increased by 3% compared to Q1 2024, reaching 2 million 125,467 thousand tons. In particular, the output of commercial concentrate amounted to 777,718 thousand tons, compared to 240,516 thousand tons in Q1 2024. The company also produced 81,879 thousand tons of DR pellets (not produced in Q1 2024), 1 million 105,049 thousand tons of premium pellets (a decrease of 36%), and 160,913 thousand tons of other pellets (an increase of 95%).
In 2024, Ferrexpo increased its production of pellets by 58% compared to 2023, from 3 million 845,325 thousand tons to 6 million 70,541 thousand tons.
Ferrexpo owns 100% of Yeristovsky GOK LLC, 99.9% of Bilanovsky GOK LLC, and 100% of Poltavsky GOK PJSC.
Ferrexpo plc, a mining company with its main assets in Ukraine, delivered 60% of its iron ore raw materials (IORM) by sea in January-June 2025, 35% by rail, and 5% by river barges.
According to the company’s interim report on Wednesday, the group continued to take advantage of its access to Ukrainian Black Sea ports to export products by sea to Asia, the Middle East, and North Africa, as well as Europe, which prefer sea transport over rail or river barges. A total of 60% of sales were exported by sea during this period, compared with 53% in the previous six months and 47% in the same period of 2024.
It is reported that a total of 16 vessels were loaded with Ferrexpo products from Ukrainian ports during the half-year. Of the total sales, 50% went to Asian customers, 38% to European customers, and the remaining 12% to customers in the Middle East and North Africa.
Overall, seaborne sales remained stable at 2.1 million tons. Sales volumes increased compared to previous half-years, although they remained unchanged compared to the same period in 2024.
However, the Fe (65%) iron ore index declined by 10% during this period, resulting in revenue of $453 million, up 18% compared to the previous six months and down 17% compared to the same period last year ($549 million), when iron ore prices were significantly higher.
Total sales volume amounted to 3.8 million tons, including pellets and concentrate, which is 28% more than in the second half of 2024, but 1% less than in the first half of 2024.
During the reporting period, the Group reduced its production cost by 2.2% under C1 to $77.1/tonne (in the first half of 2024 – $78.8/tonne) due to reduced mining activities, lower fuel prices, lower maintenance costs, and lower personnel expenses. The main factors affecting C1 costs are electricity, natural gas, and diesel fuel prices. The Group continued to experience sharp increases in electricity prices due to the existing weakness of electricity generation and distribution capacities in Ukraine as a result of ongoing Russian attacks.
It should be noted that the Group’s business is energy-intensive, and the main components of C1 expenses are electricity, gas, and diesel fuel, which together account for 49% (45% in the first half of 2024) of total expenses. In particular, in January-June 2025, the share of electricity costs in C1 costs increased to 34% (first half of 2024 – 27%), and the share of natural gas – to 9% (first half of 2024 – 7%).
The price of iron ore with a 65% benchmark declined during the first half of 2025, closing $11 lower at $104/ton. In July, iron ore prices recovered slightly, with the average price for 65% Fe at $116/tonne in the last week of July, 12% higher than at the beginning of the month.
During the first half of the year, the group operated two of its four pelletizing lines in the first quarter and one line in the second quarter, as well as a specialized concentrate line.
Commenting on the group’s performance, interim CEO Lucio Genovese noted that from January to April 2025, the company was denied VAT refunds of $31.1 million, and by the end of June, this amount had reached $38.3 million.
With the exception of lease obligations, the group has no outstanding loans or borrowings bearing interest, so no interest expenses were incurred on financial lines. The group has minimal financial debt of $2 million.
Ferrexpo owns 100% of Yeristovsky GOK LLC, 99.9% of Bilanovsky GOK LLC, and 100% of Poltava GOK PJSC.
Ferrexpo plc, a mining company with its main assets in Ukraine, reduced capital investments by 49.1% in January-June this year compared to the same period last year, from $55 million to $28 million.
According to the company’s interim report on Wednesday, of the total amount spent in the first half of 2025, capital expenditures for maintenance and modernization amounted to $15 million (in the first half of 2024 – $19 million), covering the activities of all the group’s main business units.
It is also reported that investments in strategic development projects in the reporting period amounted to $13 million (in the first half of 2024 – $36 million).
In total, 55% of capital investments were directed to supporting projects and 45% to development.
It is specified that the largest strategic capital investments included additional funds for a new press filtration complex and a new concentrate conveyor line, which amounted to $5 million and $3 million, respectively.
The aim of these projects is to increase the production of high-quality iron ore products so that the business can make its production portfolio more flexible and adapt to short-term changes in demand for various products.
The Group also funded $2 million for development work for future production and $1 million for the development and exploration of the Belanivsky deposit.
Given the decline in cash flow generation, no ordinary dividends were declared or paid during the first half of fiscal years 2025 and 2024.
The group has a shareholder return policy that sets out the group’s intention to pay up to 30% of free cash flow as dividends for a given year. The group’s ability to pay dividends also depends on developments in ongoing litigation in Ukraine, the report said.
As reported, Ferrexpo maintained its capital investments in 2024 at the previous year’s level of $101.688 million (in 2023 – $101.247 million, in 2022 – $161.010 million, and $361 million in 2021). In particular, capital expenditures for maintenance and modernization in 2024 amounted to $37 million (in 2023 – $31 million, in 2022 – $57 million, and in 2021 – $113 million). At the same time, the group reviewed the timing of investments in strategic development projects, resulting in expenditures of $65 million compared to $70 million in 2023.
Some of the larger capital expenditures included additional funds for a new press filtration complex and a new concentrate conveyor line along the production circuit, which amounted to $24 million and $2 million, respectively. These investments will enable the group to increase production of high-quality products in the near term when production returns to full capacity and to produce iron ore concentrate and pellets simultaneously.
In addition, the group spent $9 million in 2024 (2023: $22 million) on stripping work for future production growth and $18 million on a concentrator and pelletizer project (2023: $22 million) as part of the first wave (Wave 1) of the production expansion program.
The group also spent $3 million on the development and exploration of the Belanivskoye deposit (2023: $3 million) and $1 million on a hydrolysis plant (2023: $1 million) to test the use of hydrogen as fuel in the group’s granulator.
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 Mining.
Mining company Ferrexpo plc, with its main assets in Ukraine, ended January-June this year with a net loss of $196.004 million, compared with a net profit of $55.490 million in the same period last year.
According to the company’s interim report on Wednesday, the pre-tax loss for the period was $186.899 million, compared with a pre-tax profit of $75.671 million in January-June 2024.
Revenue in the first half of 2025 decreased by 17.5% to $452.607 million. At the same time, EBITDA amounted to $3.890 million compared to $79.043 million at the end of June 2024 and $69.310 million at the end of 2024.
Cash and cash equivalents at the end of June 2025 amounted to $52.262 million, at the end of June 2024 – $115.131 million, and at the end of 2024 – $105.919 million.
The report states that the group’s underlying EBITDA remained positive at around $4 million for the first half of 2025, despite losses for the period, although this is significantly lower than for the same period in 2024. The sharp decline was mainly due to lower operating profit as a result of an adjusted lower production plan following the refusal to refund VAT in Ukraine and lower realized prices, which could not be offset by the effects of lower C1 production costs and further cost-cutting measures initiated by the group during the second quarter of 2025.
Commenting on the group’s performance, interim CEO Lucio Genovese noted that the company started the year on a strong footing, with its best quarterly production since the full-scale invasion of Ukraine in February 2022. However, this momentum was significantly curtailed in the second quarter as the group was forced to reduce its activities due to the decision by the Ukrainian tax authorities to suspend VAT refunds to its subsidiaries. This is reflected in a 40% drop in production in the second quarter compared to the first quarter.
“We quickly took steps to reduce our costs. We have now had to reduce working hours or send approximately 40% of our employees on leave. We have also implemented programs to optimize the speed of disclosure, repair, and maintenance, and have reduced non-essential expenses across the business. These actions were necessary and mitigated the serious negative impact of the suspension of VAT refunds. We have managed to reduce our costs as much as possible to remain competitive in the face of low iron ore prices,” Genovese said.
He added that since the full-scale invasion of Ukraine in February 2022, Ferrexpo has continued to operate and export its products despite the enormous challenges caused by the war.
As reported, Ferrexpo posted a net loss of $50.03 million in 2024, down 41% from $84.753 million in 2023. Revenue for 2024 amounted to $933.263 million, compared to $651.795 million in 2023 (an increase of 43.2%). EBITDA amounted to $69.310 million, compared to $98.871 million adjusted for 2023. Cash and cash equivalents at the end of 2024 amounted to $100.835 million, compared to $108.293 million at the end of 2023, $106.397 million in 2022, and $117 million at the end of 2021.
Ferrexpo ended 2023 with a net loss of $84.753 million compared to a net profit of $219.997 million in 2022, which is four times lower than the profit in pre-war 2021 ($870.993 million). Revenue for 2023 amounted to $651.795 million, compared to $1 billion 248.490 million in 2022 (a decrease of 47.8%). At the same time, EBITDA fell by 83% to $130.242 million compared to $765.113 million in 2022.
Ferrexpo owns 100% of Yeristovsky GOK LLC, 99.9% of Bilanovsky GOK LLC, and 100% of Poltava GOK PJSC.
