Ferrexpo plc (LSE: FXPO) has restarted iron ore production at its operations in Ukraine using one pellet line following a temporary suspension caused by working-capital and logistics constraints.
The company mobilized its operations over the weekend after announcing commitments for a US$100 million equity raise on Sept. 4.
European Exports Prioritized
Ferrexpo said it intends to focus initially on supplying European customers because attacks on ports and vessels continue to restrict Black Sea export routes.
The company did not disclose the restarted line’s output rate, provide updated production guidance or give a timetable for bringing additional pellet lines online.
Ferrexpo temporarily suspended its mining and pelletizing operations on Aug. 5 to preserve working capital. At the time, it said existing inventory could continue supplying European customers, but its accessible cash resources were expected to last only until mid-September without additional funding.
The suspension followed disruptions to Black Sea logistics, including an incident involving a third-party vessel carrying Ferrexpo’s direct-reduction-grade pellets.
Equity Raise Remains Conditional
Ferrexpo received commitments for approximately US$100 million through a placement and subscription covering 448.8 million new shares.
The shares were priced at 16.5 pence each, representing a 42.3% discount to Ferrexpo’s April 30 closing price—the final trading day before its shares were suspended from the London Stock Exchange.
The proposed new shares represent approximately 73.1% of Ferrexpo’s existing issued share capital, indicating substantial dilution for current shareholders.
Despite the announced restart, the fundraising has not been fully completed. It remains conditional on shareholders approving the required resolutions at a general meeting scheduled for Sept. 21. Admission of the new shares to trading is expected Sept. 22.
Ferrexpo said the proceeds would support continued operations, restore deferred spending and strengthen its liquidity position.
Financial Pressure Preceded Restart
Ferrexpo reported a US$224 million loss for 2025, including a US$154 million non-cash impairment charge. Revenue fell 16% to US$787 million, while underlying EBITDA declined 60% to US$28 million.
The company ended 2025 with US$58 million in cash and US$47 million in net cash. Ferrexpo has also cited withheld Ukrainian value-added-tax refunds, legal proceedings, energy costs and wartime disruptions as continuing financial risks.
Wartime Risks Remain
Restarting one pellet line restores a degree of operating activity, but it does not represent a return to Ferrexpo’s prewar production or export capacity.
The company’s mines, processing facilities, workforce, power supply and logistics remain exposed to the war in Ukraine. Future production will also depend on export access, operating costs, iron ore prices, liquidity and completion of the equity raise.
Ferrexpo has not indicated how long the restarted line can operate at its current level or whether additional funding could be required.
Sources
- Ferrexpo Restarts Production at Ukrainian Operations
- Ferrexpo Announces Results of US$100 Million Fundraise
- Ferrexpo Suspends Production Following Logistics Disruption
- Ferrexpo Reports Full-Year 2025 Financial Results
Editorial Disclosure
This article was prepared from publicly available company disclosures. Mining Markets Report received no compensation from Ferrexpo plc for its preparation or publication and has no disclosed business relationship with the company.
The author and publisher do not hold securities in Ferrexpo plc. Information concerning production, financing and operating conditions was supplied by the company and has not been independently verified by Mining Markets Report.
The equity raise remains conditional on shareholder approval. Statements concerning production, exports, liquidity, funding, logistics and continued operations are forward-looking and remain subject to financial, legal, operational, geopolitical and market risks.
Ferrexpo’s operations are located in Ukraine and remain exposed to an active war. This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Readers should conduct their own due diligence and consult a qualified financial professional. Read the full Mining Markets Report disclaimer.
