Ferrexpo, a mining company with its main assets in Ukraine, has decided to temporarily suspend iron ore production to preserve working capital amid a constant threat of Russian attacks on and around Ukrainian ports.
"The group is currently able to supply its European customers from existing stock. The resumption of production depends, among other things, on an injection of additional working capital," Ferrexpo said in a stock exchange announcement on Wednesday.
Absent additional financing, the company expects its net available cash resources to last until mid-September 2026, according to the document.
Ferrexpo also said a Russian-hit vessel carrying Ferrexpo pellets, which had been drifting, was successfully located and moved out of the military risk zone, and is now being towed to one of the nearest Black Sea ports for a necessary technical inspection and cargo assessment. That week, Poltava Mining and Processing Plant Chairman Viktor Lotous, head of Ferrexpo’s main iron ore asset located in Horishni Plavni, Poltava region, estimated the value of this cargo at $5-6 million and said it could be lost due to a possible drift of the vessel toward temporarily occupied Crimea.
As previously reported, Ferrexpo has produced 1.3851 million tonnes of pellets in January-June 2026, down 36% year-on-year, but has increased output of this product 64% quarter-on-quarter in the second quarter to 860,213 tonnes. In 2025, the company cut pellet production 47% to 3.2215 million tonnes.
As of June 30, 2026, the group’s net cash position, excluding lease liabilities, stood at approximately $21 million, compared with $25 million as of March 31, 2026, and $47 million as of Dec 31, 2025.
Ferrexpo owns a 100% stake in Yerystivskyi Mining and Processing Plant LLC, 99.9% in Bilanivskyi Mining and Processing Plant LLC, and 100% of the shares of Poltava Mining and Processing Plant PJSC.
The London Stock Exchange has suspended trading in Ferrexpo shares since May because the company has been unable to publish its annual report on time.
