Ferrexpo plc, a mining and ore company with its main assets in Ukraine, produced 1,385,139 metric tons of pellets in January–June of this year, which is 36% lower than in January–June of last year (2,169,631 metric tons), but in the second quarter, it increased production of this product by 64% compared to the first quarter—to 860,213 thousand metric tons from 524,926 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 half of 2026 fell by 54% compared to the first half of 2025—to 1,556,160 thousand metric tons. In particular, production of premium-grade Fe67% concentrate amounted to 171,021 thousand metric tons, compared to 1,223,504 thousand metric tons (a decrease of 86%). The company also produced 1,221,968 thousand metric tons of premium-grade pellets (a 41% decrease) and 163,171 thousand metric tons of DR pellets (compared to 81,787 thousand metric tons produced in the first half of 2025).
The press release notes that the group continues to operate under significant constraints caused, in particular, by serious operational and financial risks related to the war in Ukraine. These factors include the mobilization of a significant portion of the workforce into the Armed Forces of Ukraine, as well as disruptions and restrictions in logistics, as a result of which only one iron ore pellet production line is currently in operation.
The group continues to focus on cost management and operational activities to preserve working capital amid significant constraints. At the same time, the Group continues to optimize its product mix (the ratio of pellet production to concentrate production) and manage the allocation of shipments among customers. In addition, operating expenses have been reduced across all business lines over an extended period, a situation that will require a solution in the future.
As a result of these measures, as of June 30, 2026, the Group’s available cash balance stood at approximately $27 million (excluding funds held at MBaer Merchant Bank (MBaer), whose banking license was revoked in February 2026). As of June 30, 2026, the Group’s net cash position (excluding lease obligations) was approximately $21 million (for comparison: as of March 31, 2026, this figure was approximately $25 million; as of December 31, 2025, it was $47 million; as of June 30, 2025, it was $50 million; and as of December 31, 2024, it was $101 million).
Given the measures taken by the Group, as well as current production volumes, actual and projected energy prices for the next quarter, and an optimized sales structure, the Group forecasts that its available net cash (net of lease obligations and funds locked up in MBaer) will be sufficient to continue operations under the current challenging conditions until the beginning of the fourth quarter of 2026. This forecast depends on the volatility of iron ore prices and operating expenses (particularly energy costs) and is based on the assumption that there will be no material changes in the Group’s operating conditions (including energy supply) Furthermore, the arbitration administrator appointed as part of the Poltava Mining and Processing Plant’s bankruptcy proceedings will not impose restrictive measures, and there will be no final, non-appealable adverse decisions in the various judicial and administrative proceedings to which the Group is currently a party.
The Group remains in a precarious financial position and is implementing cost-cutting measures across all areas of its operations, particularly with regard to operating and capital expenditures. In addition, significant operating expenditures have been deferred, particularly those related to the optimization of mining operations, repairs, and maintenance of processing and pellet production facilities, as well as mining equipment.
Against this backdrop, the group is maintaining its workforce at 6,299 employees to retain the skilled professionals needed to manage flexible production volumes in response to market demand. This figure currently includes 804 employees serving in the Armed Forces of Ukraine.
The press release states that the Group’s VAT refunds have been suspended since March 2025. As a result of this suspension, as of June 30, 2026, VAT receivables in Ukraine amounted to $90.4 million (net of related provisions); (for comparison: as of March 31, 2026, this figure stood at $90.3 million). Of this amount, as of the date of this announcement, $87.5 million had been claimed for refunds covering the period from January 2025 through June 2026, with the Ukrainian tax authorities having denied refunds for approximately $80.8 million (relating to the period from January 2025 through April 2026).
The company is in negotiations with Ukrainian authorities to find a long-term solution to the issue of obtaining VAT refunds. Although the company is striving to reach an agreement, given the complexity of the situation, the possibility of reaching such an agreement and the timeline for its implementation remain uncertain, according to the press release.
The company also provides an update on the status of its legal proceedings. Specifically, regarding the long-standing legal dispute between “Maxi Capital Group” Financial Company LLC (Maxi Capital) and PGZK regarding disputed guarantee agreements and a claim in the amount of 4.727 billion hryvnia (approximately $105.4 million as of June 30, 2026), the group reports that the main claim is currently being considered by the Supreme Court of Ukraine. On May 1, 2026, the court expanded the panel to 17 judges. The next court hearing in this case is scheduled for October 12, 2026.
Proceedings in the PGZK bankruptcy case: Following the local court of first instance’s decision on February 24, 2026, to open bankruptcy proceedings based on Maxi Capital’s petition, PGZK filed an appeal against that decision. Following the official recusal of the original three-judge panel on April 30, 2026, a new panel was appointed. During the hearing on June 2, 2026, the appellate court heard the parties’ arguments and scheduled the next hearing for July 27, 2026.
The company has updated information regarding its financing options. The Board of Directors continues to believe that raising equity capital is currently the most viable solution within the required timeframe. This capital raise will likely be structured as a conditional placement of new shares among certain existing and new institutional investors with the aim of raising at least $100 million. These funds are necessary to maintain the Group’s working capital levels, meet its short-term operational needs, increase production volumes, and carry out previously deferred work on deposit development (overburden removal) and capital expenditures while operating at reduced capacity over the next 18 months. The Group is actively working on a series of measures necessary to begin implementing the planned capital raise.
The Company continues negotiations with representatives of its largest shareholder—Fevamotinico S.a.r.l.—regarding its participation in the equity financing. At this stage, there is no certainty that the Group will be able to successfully carry out the planned fundraising. If the issues regarding the delay in VAT refunds and financing problems are not resolved in a timely manner, this could lead to serious negative consequences for the Group. In particular, the Company or Group entities may be forced to file for insolvency in the relevant jurisdictions, and shareholders may lose all or a significant portion of their investments.
Regarding the delay in the publication of the audited financial statements for 2025, the listing, and trading of the Company’s shares: Given that the preparation of the financial statements for the year ended December 31, 2025, under the going concern assumption, depends on the successful completion of the planned capital raising, the Company has not yet been able to publish its audited financial results for that period. The results for the 2025 fiscal year are expected to be released concurrently with the launch of the planned capital raising process.
Following the release of the results for the 2025 fiscal year, the company will apply to the UK Financial Conduct Authority (FCA) to lift the suspension of its listing, thereby allowing trading in the company’s shares to resume.
Commenting on the group’s performance, interim acting chairman Lucio Genovese stated, “We are very pleased that we were able to restore stable production during this period, despite the numerous operational and logistical challenges we faced.”
“We took the opportunity to improve our sales mix through exports of direct-recovery pellets (DR pellets/FDP) and continue to cut costs across the entire company to preserve our available working capital, which is being depleted due to the lack of VAT refunds starting in March 2025. We are continuing our efforts to raise capital, which is the most viable solution for addressing the working capital shortfall,” Genovese noted.
As previously reported, Ferrexpo produced 3,221,461 metric tons of pellets in 2025, which is 47% less 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 thousand metric tons. Specifically, marketable concentrate output amounted to 2,920,298 thousand metric tons, compared to 709,803 thousand metric tons, respectively. The company also produced 81,787 thousand metric tons of DR pellets (compared to 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 Mining and Processing Plant LLC, a 99.9% stake in Bilanivsky Mining and Processing Plant LLC, and 100% of the shares in Poltava Mining and Processing Plant PJSC.
FERREXPO, MINING AND PROCESSING PLANT, PELLETS, PRODUCTION, VAT
Ferrexpo plc, a mining and ore company with its main assets in Ukraine, continues to focus on managing its costs and optimizing its sales structure to maximize its working capital.
According to a company statement released ahead of its annual general meeting on Monday, the group continues to operate under severely constrained conditions due to the war in Ukraine and related operational and financial difficulties.
At the same time, the statement notes that despite significant disruptions in the operating environment in Ukraine, the group continues to operate one of its four pellet production lines and export its products to customers in Europe and the Middle East.
As previously announced, the group decided to sell its own transshipment vessel, the Iron Destiny, for which it received a net profit of $7.7 million. Based on current production rates, current and projected energy prices for the next quarter, and taking into account an optimized sales mix, the group now forecasts that it will have sufficient net available cash—excluding funds frozen at Mbaer Bank—beyond the previously stated end of August 2026.
“This assessment remains subject to the volatility of iron ore prices and operating expenses (including energy costs) and assumes that there will be no significant changes in the Group’s operating conditions—including electricity supply—and that no restrictive measures will be taken by the insolvency administrator at Poltava Mining and Processing Plant (PGZK), and that there will be no final, non-appealable negative outcomes in the various judicial and administrative proceedings currently pending against the group,” the statement said.
In addition, it is noted that the group continues to actively pursue initiatives to enable it to begin raising equity capital in the amount of at least $100 million. As noted in the company’s previous announcements, the group remains confident that raising equity capital is the most viable solution within the required timeframe.
“At this stage, there is no certainty that the group will successfully complete such financing options. If the issues regarding the withholding of VAT refunds and financing are not resolved in a timely manner, this could lead to significant negative consequences for the group. The planned capital raise, if implemented, will be the subject of a further announcement, including the full terms of the planned capital raise,” the press release states.
The company plans to release its production report for the second quarter of 2026 on July 15 of this year.
As previously reported, Ferrexpo plc announced that it will hold its annual shareholders’ meeting on June 29 of this year. The total number of shares whose holders are entitled to vote at the meeting is 598,137,142 ordinary shares. Only one class of shares is outstanding, and each share carries one vote; therefore, the total number of voting rights that can be exercised at the meeting is 598,137,142.
Lucio Genovese, the company’s interim acting chairman, explained that voting on all resolutions will be conducted by poll, and the voting results will be announced through the Regulatory Information Service and published on the group’s website as soon as possible after the general meeting.
Genovese reiterated that the company aims to raise at least $100 million, which is needed to finance Ferrexpo Group’s operations over the next 18 months. The Group’s operations have been significantly impacted since the start of Russia’s full-scale invasion of Ukraine in 2022, leading to a reduction in operational activities and periods of complete suspension of operations. This has had a material impact on the Group’s revenue.
In addition, the decision by Ukraine’s tax authorities to suspend VAT refunds effective March 2025, amounting to approximately $90 million, has further significantly impacted the group’s liquidity. The company intends to complete the equity offering as soon as possible and is actively working toward this goal. However, it is not yet in a position to officially launch the equity offering.
“Until the equity offering is ready to launch, the company cannot publish its audited financial results for the year ended December 31, 2025, on a going-concern basis, as the company and its auditors require sufficient assurance regarding the commencement and successful completion of the equity offering before signing off on the financial statements. Due to the delay in the equity offering and given the dependence on the commencement of the equity offering for the publication of the audited financial statements for the year ended December 31, 2025, on a going-concern basis, the company is unable to finalize the audited annual report and financial statements for the year ended December 31, 2025, but is committed to doing so as soon as possible,” the acting CEO stated in his address.
According to him, this annual shareholders’ meeting is being held solely to address routine matters, namely the reelection of directors and the renewal of authorizations granted to conduct market purchases of the company’s own shares and to convene annual shareholders’ meetings. All directors will step down at the 2026 general meeting of shareholders and will seek re-election by the shareholders, with the exception of Mr. Vitaliy Lisovenko, who, as previously announced, will resign from the company’s board of directors upon the conclusion of the general meeting.
According to the information, the meeting will propose, among other things, the re-election of Stuart Brown, Mykola Kladiev, Lucio Genovese, and Fiona Macaulay as members of the board of directors.
As previously reported, Ferrexpo has delayed the publication of its audited report for 2025.
It was also reported that the London Stock Exchange (LSE) suspended trading in Ferrexpo shares, while the company twice warned shareholders in the second half of April about the suspension of its listing and trading due to its inability to publish its annual financial statements on time. Most recently, on April 28, Ferrexpo noted that it had received indicative, non-binding expressions of interest from institutional investors regarding a potential capital raise of more than $100 million—on which the publication of the report also depends—but that it would not be able to complete this by the end of April.
Ferrexpo owns a 100% stake in Yeristivsky GZK LLC, a 99.9% stake in Bilanivsky GZK LLC, and 100% of the shares in Poltava GZK PJSC.
Ferrexpo plc, a mining company with primary assets in Ukraine, produced 524,926 thousand tons of pellets in January–March of this year, which is 61% lower than in January–March of last year (1,347,749 thousand tons), but 27% more than in Q4 2025, when 412,867 thousand tons were produced.
According to the company’s press release on Wednesday, total production of commercial products (pellets and iron ore concentrate) in Q1 2026 fell by 72% compared to Q1 2025—to 592,751 thousand tons. Specifically, production of premium-grade Fe67% concentrate amounted to 67,825 thousand tons, compared to 777,718 thousand tons in Q1 2025 (a 91% decrease). The company also produced 524,926 thousand tons of premium-grade pellets (a 52% decrease). Meanwhile, no DR pellets (81,787 thousand tons were produced in Q1 2025) or other pellets (160,913 thousand tons) were produced.
The press release explains that Ferrexpo’s production activities were largely suspended in the first quarter due to nationwide attacks on Ukraine’s electricity generation and transmission infrastructure. Production resumed only with limited operations at reduced capacity levels in late February 2026 following improved electricity availability and prices. The Group continues to operate one of its four pelletizing lines and sell its products to European customers.
As noted in the trading update announced on April 1, 2026, the Group focused on carefully managing its working capital and expenses amid challenging operating conditions. This included reducing employee working hours, continuously cutting purchases of goods and services, and further suspending all non-essential capital expenditures, overhead costs, and corporate social responsibility (CSR) expenses.
The company continues to closely monitor its cash position and working capital and remains actively exploring and refining a range of potential financing options, which may include raising equity capital. At this stage, there is no certainty that the Group will successfully secure such financing options. If the withholding of VAT refunds continues and financing issues are not resolved in a timely manner, this could result in significant adverse consequences for the Group.
Commenting on the Group’s performance, interim acting chairman Lucio Genovese (Lucio Genovese) noted that the lower production figures in the first quarter of 2026—nearly half of those achieved in the last three months of 2025—reflect Russia’s targeted attacks on Ukraine’s energy infrastructure at the end of last year and their impact on the company’s ability to operate stably.
“Until January, given that electricity supply could not be secured on a stable basis in the necessary volumes, we were forced to make the difficult decision to temporarily suspend operations and send part of the workforce on leave. Fortunately, by the end of February, we saw sufficient improvement in the availability and price of electricity to resume limited production at the PGZK on one pellet production line. One line remains in operation, and the group continues to use its own fleet of railcars for exports to customers in Eastern and Central Europe. “Going forward, we will focus on managing working capital and costs in this challenging operating environment,” said Genovese.
As 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 commercial products (pellets and iron ore concentrate) in 2025 decreased by 9% to 6,141,759 thousand tons. In particular, commercial concentrate output amounted to 2,920,298 thousand tons compared to 709,803 thousand tons, respectively. The company also produced 81,787 thousand tons of DR pellets (489,720 thousand tons in 2024) and 3,139,674 thousand tons of premium-grade pellets (a 44% decrease).
In 2024, Ferrexpo increased pellet production by 58% compared to 2023—to 6,070,541 thousand tons from 3,845,325 thousand tons. In 2023, the company produced 3.845 million tons of pellets, which is 36.5% less than in 2022.
Ferrexpo owns a 100% stake in Yeristivsky GOK LLC, 99.9% in Bilanivsky GOK LLC, and 100% of the shares in Poltavsky GOK PJSC.
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.
Ferrexpo plc, a mining company with its main assets in Ukraine, produced 2,169,631 tons of pellets in January-June this year, which is 34.2% less than in January-June last year (3,297,441 tons).
According to the company’s press release on Monday, total production of commercial products (pellets and iron ore concentrate) 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 marketable 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%).
The press release notes that from January to April 2025, the amount of VAT refunds denied amounted to $31 million. Due to the current suspension of VAT refunds and the associated decline in financial liquidity, the group was forced to reduce production from two to one pelletizing line and also to reduce the production of high-quality concentrate. As a result, total commercial production for the second quarter amounted to 1.3 million tons, down 40% from 2.1 million tons in the first quarter.
However, the group demonstrated flexibility and agility by continuing to benefit from strong demand for its concentrate from customers in China, which accounted for more than a third of its product mix in the first two quarters of 2025, the statement said.
Among other things, it has made efforts to reduce its costs in order to remain financially viable. This includes reducing working hours for employees, cutting purchases of goods and services, and suspending all non-essential capital expenditures, overhead costs, and corporate social responsibility expenses.
Commenting on the group’s performance, interim CEO Lucio Genovese noted that the strong momentum at the beginning of the year, which reflects, in particular, increased quarterly production since the full-scale invasion in February 2022, was significantly limited in the second quarter as the company began to feel the impact of tax authorities’ decisions to suspend VAT refunds. As a result, production fell to 1.3 million tons in Q2 2025.
“Despite the weaker iron ore pellet market, we were able to significantly change our production portfolio and take advantage of strong demand in China for our high-quality low-alumina iron ore concentrates. During the first six months of 2025, concentrate sales accounted for 36% of our production portfolio, three times more than in the same period a year ago. In a challenging operating and market environment for iron ore, it is encouraging that we have been able to be so flexible and take advantage of the demand for high-quality concentrates,” said the top manager.
At the same time, he pointed out that lower iron ore prices and reduced production had a negative impact on profitability. The situation was exacerbated by higher prices for raw materials such as gas and electricity. During the second quarter, the group worked hard to reduce its costs in order to remain financially viable.
“This includes reducing working hours or leave for approximately 37% of employees, reducing purchases of goods and services, and suspending all non-essential capital expenditures, CSR, and humanitarian expenditures. At the same time, every effort is being made and measures are being taken with the relevant authorities and government agencies in Ukraine and internationally to try to resolve the issue of the suspension of VAT refunds,” Genovese added.
As reported, Ferrexpo produced 1 million 347,749 thousand tons of pellets in Q1-2025, which is 26% lower 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, to 2 million 125.467 thousand tons. In particular, the output of marketable 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-grade 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, to 6 million 70.541 thousand tons from 3 million 845.325 thousand tons. In the fourth quarter of 2024, it produced 1 million 503.373 thousand tons of pellets, which is 18% higher than in the previous quarter (1 million 269.727 thousand tons).
At the same time, 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 marketable concentrate reached 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 100% of Yeristovsky GOK LLC, 99.9% of Bilanivsky GOK LLC, and 100% of Poltavsky GOK PJSC.
“Metinvest, Ukraine’s largest mining and metals holding, increased its total production of iron ore concentrate (IOC) by 63% year-on-year to 12.239 million tonnes in January-September this year, and pellets by 15% to 4.570 million tonnes, but reduced its total output of coking coal concentrate by 25% to 3.220 million tonnes.
According to the operating report of the parent company Metinvest B.V. on Monday, in March-July 2024, Ukraine experienced power supply restrictions due to Russian shelling and high demand for imported electricity. Since August, the situation has stabilized, but the unfavorable conditions on the iron ore market have led to a decline in production.
The Group’s mining and processing plants continued to operate at varying levels of capacity utilization, taking into account the availability of electricity, its cost, market prices for iron ore products and other factors to ensure efficient production. As a result, in Q3 2024, total iron ore concentrate production decreased by 17% quarter-on-quarter to 3.347 million tonnes; production of saleable iron ore products decreased by 15% to 3.231 million tonnes, including iron ore products by 16% to 1.854 million tonnes, and saleable pellets by 14% to 1.377 million tonnes.
Amid the unblocking of Ukrainian Black Sea ports from August 2023 and an increase in the order book for pellets, total iron ore production increased by 63% to 12.239 million tonnes in the first nine months of 2024 compared to the same period of the previous year. At the same time, the output of commercial iron ore products increased by 84% to 11.446 million tons, including a 3.1-fold increase in the production of commercial iron ore products to 6.876 million tons and 15% increase in commercial pellets to 4.570 million tons.
Since February 2024, Russian troops have concentrated their efforts on several fronts, including the Pokrovske direction, located near the Pokrovske coal group. Russian troops captured a number of towns and villages in the region and shifted the front line. Intense fighting and massive shelling continue in the area. Management is closely monitoring the situation and is taking all possible measures to minimize any potential negative consequences for the group, the statement said.
In the third quarter of 2024, the group’s production of coal concentrate increased by 14% quarter-on-quarter to 1.135 million tons. The main factor was a 17% increase in production volumes at Pokrovske Coal Group to 658 thousand tons. Despite the intensification of military operations in the Pokrovske area, production increased due to the commissioning of an additional longwall, which increased mining productivity and improved the quality characteristics of Ukrainian coking coal.
United Coal Company’s (USA) coal concentrate production increased by 9% quarter-on-quarter to 477 thousand tons due to increased production at some Affinity mines, mainly on the back of growing demand for coking coal.
For 9M2024, the Group’s coal concentrate production decreased by 25% year-on-year to 3.220 million tonnes, in particular due to a 23% decrease in production at Pokrovske Coal Group to 1.860 million tonnes, mainly as a result of optimization of mining operations due to changes in mining and geological conditions; at United Coal Company by 28% to 1.360 million tonnes due to the cessation of production at Carter Roag mines and a decrease in production at some Wellmore mines.
“Metinvest comprises mining and steel production facilities located in Ukraine, Europe and the United States. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
