MINEX Forum

Tag: Ukraine iron ore

  • Ferrexpo Suspends London Stock Exchange Listing as Ukraine Iron Ore Producer Races to Complete $100 Million Rescue Raise

    Ferrexpo Suspends London Stock Exchange Listing as Ukraine Iron Ore Producer Races to Complete $100 Million Rescue Raise

    Ferrexpo has suspended the listing and trading of its shares on the London Stock Exchange with effect from 7:30 a.m. on 1 May, as the Ukraine-focused iron ore producer failed to complete a planned capital raise and publish its 2025 annual financial results by the deadline it had previously set itself.

    The suspension will remain in place until the company completes its audit, publishes its annual report and financial statements for 2025, and implements a financing solution — with no certainty provided on when, or whether, trading will resume. “There is no certainty regarding the expected timing of the lifting of the suspension of listing and the resumption of trading in shares, if it happens at all,” Ferrexpo said in its statement.

    The company has received indicative, non-binding expressions of interest from institutional investors in a potential recapitalisation of more than $100 million, but was unable to finalise the transaction before the end of April. Ferrexpo has described an equity raise of at least $100 million as the only viable solution to meet current obligations and provide sufficient working capital for the next 18 months. Without a successful financing outcome, the group has sufficient available cash only until approximately the end of August 2026. The company previously warned that failure to complete the fundraise could force it to file for insolvency.

    The financial crisis has unfolded against a backdrop of severe operational disruption. In the first quarter of 2026, Ferrexpo reduced iron ore production by 72% year-on-year to 592,750 metric tonnes, and by 45% compared to the previous quarter, as Russian attacks on Ukraine’s energy sector largely suspended production activities. A limited resumption at reduced capacity occurred only at the end of February.

  • Ferrexpo Warns of Total Investment Loss and Imminent Insolvency Risk Without $100 Million Fundraise by End of April

    Ferrexpo Warns of Total Investment Loss and Imminent Insolvency Risk Without $100 Million Fundraise by End of April

    Ukraine-focused iron ore producer Ferrexpo has issued one of the starkest warnings in its history as a listed company, telling shareholders they could lose the “entire value of their investment” if a $100 million emergency equity raise fails to complete by the end of this month — a deadline that, if missed, would trigger a suspension of its London shares and potentially force the group into insolvency.

    Shares in the Baar, Switzerland-headquartered FTSE 250 company fell 12% to 37.98 pence in London on Wednesday morning following the announcement. Ferrexpo said it currently has sufficient cash to operate only until around the end of August, with net cash at 17 April standing at just $20 million — down sharply from $101 million at the end of 2024. The proposed $100 million raise, described as the “only viable solution” available in the required timeframe, would cover short-term operational requirements at a reduced production level for the next 18 months.

    The company’s financial position has been severely eroded by the compounding effect of three overlapping crises: the ongoing war in Ukraine, the suspension by Ukrainian tax authorities of VAT refund payments to the group, and a legal claim against its main operating subsidiary FPM. Without recovery of the VAT refunds — which Ferrexpo acknowledged is outside its control — the group warned it would have “no option but to file for insolvency” if the fundraise does not proceed.

    The equity raise must be launched and completed on or before the end of April for Ferrexpo to be able to publish its audited 2025 financial results. If that deadline is not met, the company expects its shares will be suspended from 1 May until the audit is completed — with no certainty provided on when, or whether, trading would resume. “In such a scenario, there can be no certainty as to the expected timing of the lifting of the suspension of listing and resumption of trading of the company’s shares, if at all,” the company warned.

    Talks are continuing with Fevamotinico Sarl, which holds a 49% stake in Ferrexpo, regarding the potential dilution of its interests as a result of the fundraise and whether it will participate. The outcome of those discussions is material to the viability of the raise. Ferrexpo said a successful capital injection would strengthen liquidity, provide working capital and position the company to restore production capacity to a sustainable level, with potential for longer-term recovery once operating conditions stabilise.