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.
