MINEX Forum

Tag: Ferrexpo

  • Ferrexpo’s Ukrainian Unit Faces Bankruptcy Proceedings Amid Legal Turmoil

    Ferrexpo’s Ukrainian Unit Faces Bankruptcy Proceedings Amid Legal Turmoil

    Ukraine-focused miner Ferrexpo announced on Thursday that the Commercial Court of Poltava has accepted an application to initiate bankruptcy proceedings for its Ukrainian subsidiary, Ferrexpo Poltava Mining (FPM).

    Following the announcement, Ferrexpo’s shares dropped 6.6%, trading at 65 pence.

    Despite the court’s acceptance of the application, the company clarified that formal bankruptcy procedures have not yet commenced. A preparatory court hearing is scheduled for May 27, during which the court will review the application.

    Ferrexpo has been embroiled in legal disputes in Ukraine since 2022 when its main shareholder, Ukrainian billionaire Kostiantyn Zhevago, was arrested on embezzlement charges linked to the collapse of Finance & Credit Bank.

    In 2024, a Ukrainian court ruled against FPM, demanding a payment of 4.73 billion hryvnias ($114.06 million), alleging the subsidiary had provided guarantees to Bank F&C. Although this claim was suspended by the Ukrainian court of appeal, the final decision remains pending.

  • Ferrexpo Threatens Legal Action Against Ukraine Over Mine Nationalization

    Ferrexpo Threatens Legal Action Against Ukraine Over Mine Nationalization

    London-listed mining giant Ferrexpo is preparing for a legal battle with Ukraine over the government’s plan to partially nationalize the Poltava mine. The mine, located 200 miles southwest of Kyiv, is Ferrexpo’s primary asset, making it the world’s third-largest exporter of iron pellets.

    The dispute arises from Ukraine’s crackdown on oligarch Kostyantyn Zhevago, who owns 49.5% of Ferrexpo. Zhevago, currently under investigation for alleged embezzlement linked to the collapse of his bank in 2015, has been targeted by Kyiv’s efforts to reclaim lost funds. After failing to seize his stake through the London courts in 2023, Ukraine is now attempting to take a direct stake in the mine.

    Ferrexpo argues that this move violates Ukraine’s bilateral investment treaty with the UK. The company has formally notified Ukraine that if the nationalization proceeds, it will initiate international arbitration. Chairman Lucio Genovese warned that such actions could deter foreign investment in Ukraine’s post-war recovery.

    The Ukrainian government has not yet responded to requests for comment. With major investors such as BlackRock, Fidelity, and JPMorgan involved, the outcome of this legal standoff could have significant implications for Ukraine’s economic future.

  • Ferrexpo Shares Plunge Amid $3.8 Billion Civil Claim in Ukraine

    Ferrexpo Shares Plunge Amid $3.8 Billion Civil Claim in Ukraine

    Shares of Ferrexpo PLC, a London-listed iron ore producer, dropped as much as 51% following the announcement of a $3.8 billion civil claim filed against its Ukrainian subsidiary, Ferrexpo Poltava Mining. The claim, issued by Ukrainian authorities, accuses the company of illegal mining and environmental damage.

    After experiencing its largest intraday decline on record, Ferrexpo pared its losses to a 23% drop. The company issued a statement denying the allegations, noting that the current accusations have “transformed” from prior claims of illegal waste product sales. Ferrexpo confirmed that its Ukrainian subsidiary intends to vigorously defend its position in court.

    In January, the company addressed earlier accusations made by Ukraine’s Prosecutor General’s Office against four senior managers concerning the sale of waste products. Ferrexpo argued that these materials were not a separate mineral resource and had been sold for years under state inspections until September 2021.

    Ferrexpo’s Poltava mine, located in central Ukraine, is its largest operation and critical to its business. Before the Russian invasion in 2022, Ferrexpo ranked as the world’s third-largest exporter of iron ore pellets.

    The legal battle in Ukraine, coupled with the ongoing war, presents significant challenges for Ferrexpo as it works to defend its largest subsidiary and stabilize investor confidence.

  • Ferrexpo shares plummet 51% following $3.8 billion Ukrainian civil claim

    Ferrexpo shares plummet 51% following $3.8 billion Ukrainian civil claim

    Ferrexpo’s shares experienced a sharp decline, falling by as much as 51%, after the company announced that its Ukrainian subsidiary, Ferrexpo Poltava Mining (FPM), is facing a 157 billion Ukrainian hryvnias ($3.8 billion) civil claim in Ukraine. The claim was made due to allegations of illegal mining and the sale of subsoil, which has purportedly caused environmental damage.

    Ferrexpo, a Swiss-based iron ore producer listed in London, faced its most significant intraday drop on record, before recovering some losses to 23%. Previously, in mid-January, Ferrexpo responded to allegations made by the Prosecutor General’s Office of Ukraine against four senior managers of FPM, which concerned suspicions of illegal mining and sale of waste products.

    According to Ferrexpo, these minerals cannot be classified as a separate mineral resource. Furthermore, the company has stated that waste products have been sold for several years, and all activities were consistently inspected by the state. FPM plans to rigorously defend itself in the Ukrainian courts.

    Ferrexpo’s Poltava operation, their largest iron ore mine, is located in central Ukraine. Prior to the Russian invasion of Ukraine in 2022, Ferrexpo PLC was the world’s third-largest exporter of iron ore pellets. This is not the first time Ferrexpo has faced controversy related to its Ukrainian operations, further highlighting the delicate nature of the situation and the potential challenges to overcome.

  • Ferrexpo Shares Surge as Trump’s Victory Fuels Speculation on Ukraine Peace Prospects

    Ferrexpo Shares Surge as Trump’s Victory Fuels Speculation on Ukraine Peace Prospects

    Ferrexpo PLC (LSE), a Ukraine-based iron ore miner, experienced a sharp rise in its stock price, soaring by 22% to 76p following Donald Trump’s unexpected win in the U.S. presidential race. Analysts suggest the rally reflects investor optimism that Trump’s promise to end the Russia-Ukraine war could soon bring stability to Ukraine. Despite ongoing conflict, Ferrexpo has managed to sustain its mining operations. Ukrainian President Volodymyr Zelenskyy also congratulated Trump, expressing hopes for continued bipartisan support from the U.S. under his leadership.

  • Ferrexpo soars higher as exports resume and production climbs

    Ferrexpo soars higher as exports resume and production climbs

    Ferrexpo PLC (LSE:FXPO) shares rocketed 11% higher as production at the Ukraine-based iron pellet maker hit its highest since the Russian invasion, while exports have also resumed from ports in the country.

    Output jumped 203% to 1.8 million tonnes of pellets in the first quarter of this year, though this was still some way short of the 2.8 million tonnes produced before the start of the war.

    Executive chair Lucio Genovese said production improved even though 669 employees are currently serving with the Ukraine military, the most since the outbreak of fighting.

    “It is pleasing that despite facing so many challenges, we are able to report solid production and sales numbers for the quarter,” Genovese said.

    “As long as we believe the level of risk is acceptable, taking into account the ongoing war in Ukraine, we will continue to use all the export capacity available to ensure that we are supporting the interests of all stakeholders.”

    “The ability to export through the Ukrainian Black Sea ports has been positive not just for our production and sales, but also for the morale of our workers. They can sense that the company is working hard to protect their jobs and livelihoods.

    “Although it is positive that we have been able to export through the Black Sea ports, it has not been without its challenges. Logistics have been complex and shipping and insurance costs have increased. As the ports provide access to larger vessels, we have, however, benefited from economies of scale.”

    Ferrexpo shares have been hurt recently by a legal action related to its principal shareholder, billionaire Konstantyin Zhevago, that sparked a provision of £105 million in its recent results.

    Shares were 5.7p up at 53.9p.

  • Ferrexpo Seeks Resumption of Exports Through Temporary Corridor Amid Reduced Capacity and Losses

    Ferrexpo Seeks Resumption of Exports Through Temporary Corridor Amid Reduced Capacity and Losses

    Ukrainian iron ore miner Ferrexpo aims to restart exports via the Black Sea amid risks posed by Russian attacks on ships leaving the port of Odesa. Since Moscow terminated a pact ensuring the safe transport of Ukrainian grain, Kyiv has established a provisional passage for vessels to enter and exit. However, Russia considers all cargo ships headed for Ukraine as potential targets.

    Ferrexpo, producing iron ore pellets, has utilized only half of its four pellet lines due to decreased export capacity. Chairman Lucio Genovese intends to restore exports via the route, acknowledging the challenging circumstances brought about by Russia’s invasion of Ukraine. This predicament has significantly limited shipping opportunities to the Middle East and Asia.

    In related articles, Ferrexpo ranks among the FTSE 350’s poorest performers of 2023, grappling with declining profits and revenue due to the impact of the war on its operations. Additionally, 34 employees have lost their lives in the conflict, while 754 others serve in Ukraine’s military.

    Despite these challenges, Ferrexpo shares experienced a 6.6 percent surge, gaining 5.55p to close at 90.25p. Meanwhile, the London stock market witnessed a premature closure on the final trading day of the year, with the FTSE 100 increasing slightly by 0.1 percent and the FTSE 250 dropping 0.2 percent.

  • Court Restricts Transfer of Ownership for Ferrexpo’s Ukrainian Subsidiaries Amid Legal Proceedings

    Court Restricts Transfer of Ownership for Ferrexpo’s Ukrainian Subsidiaries Amid Legal Proceedings

    Ferrexpo, a leading iron ore pellet producer, disclosed that a court ruling has barred the transfer of ownership and other related corporate rights of its subsidiaries in Ukraine. The London-listed company clarified that these restrictions are part of an ongoing legal battle against Kostyantin Zhevago, the Ukrainian billionaire and Ferrexpo’s largest shareholder, pertaining to Bank Finance & Credit, and are unrelated to the Ferrexpo Group. Zhevago’s legal challenges coincide with Ukraine’s anti-corruption efforts, crucial for its aspirations to join the European Union, amidst the backdrop of Russia’s invasion.

  • Ferrexpo profits fall as Ukraine war continues to impact

    Ferrexpo profits fall as Ukraine war continues to impact

    Iron ore pellet maker Ferrexpo reported a fall in half-year profits as its operations in Ukraine continued to be affected by the ongoing war.

     

    Revenues fell 64% to $334m due to lower production and realised prices, while profit after tax declined 67% to $27m.

    Pellet production fell 59% year on year to 1.967 million tonnes during the half due to the conflict in Ukraine and associated logistics constraints, but were up 57% compared to the previous six months as output and demand increased, Ferrexpo said on Wednesday.

    “Improvements in sales volumes and prices helped lift revenues 7% to $334m for the first half of 2023 compared to the last six months of 2022, although admittedly lower than the first half of 2022 during which operations were running at full capacity until the invasion of Ukraine and iron ore prices were correspondingly higher,” it added.

    “Our operations have changed too, adapting to become more nimble and responsive to different challenges as they develop. We are currently running two out of four pelletiser lines, which generate enough high-quality production to utilise the available logistics capacity to continue supplying our European customers.”

    The company also revealed that 27 of its staff had been killed fighting against Russian invasion forces and chairman Lucio Genovese said many were still serving, while other veterans had returned to work.

    “At the start of the war, a large part of our workforce moved away; but, at the same time, we have absorbed even more internally displaced people fleeing the conflict on the eastern border, providing them with accommodation, food and medical supplies, and wherever possible, employment too.”