Ferrexpo raises $100 mln in capital, resumes listing on LSE; half of amount contributed by Kernel owner Verevsky
Ferrexpo, a mining company with its main assets in Ukraine, announced the placement and subscription of new shares at a price of 16.5 pence per share, which is 42.3% lower than the last share price on the London Stock Exchange (LSE) on April 30 of this year. The total amount is approximately $100 million. Half of this was provided by Kernel agricultural holding owner Andriy Verevsky, and the remaining 40% by Fevamotinico S.a.r.l. of Kostiantyn Zhevago, the largest owner of Ferrexpo itself with a stake of approximately 49.3%.
"Today’s announcement also enables the resumption of trading of the Group’s shares on the London Stock Exchange. Our London listing (...) since 2007 remains an important part of our ongoing commitment to high standards of corporate governance, transparency, and accountability, while providing investors with the protection and confidence expected of a global public company," said Ferrexpo interim CEO Lucio Genovese in a stock exchange statement on Friday.
According to him, the new shares represent approximately 73.1% of the company’s existing shares before the fundraising.
Completion of the placement requires a positive resolution by the shareholders’ meeting on September 21, with the resumption of the listing then taking place on September 22.
As stated in the release, as of August 28, 2026, Ferrexpo’s cash position had decreased to approximately $26.4 million, and after deducting lease liabilities, it was approximately $17.8 million, compared to $21 million at the middle of this year and $47 million at the beginning of the year, which is enough to cover the company’s operations only until the end of October.
The Board of Directors believes that the $100 million raised will be sufficient to meet the Group’s immediate and short-term operating needs, enabling it to operate at a reduced level for the next 18 months. The funds will be used primarily to resume temporarily suspended mining and processing operations in Ukraine, to renew deferred expenditures across all operations, including repairs and maintenance, and to maintain financial flexibility given the ongoing uncertainty of operations in Ukraine.
To address the recapitalization, the Board of Directors held discussions with Fevamotinico, during which the latter objected to excessive dilution of its shares below 45.2% of the authorized capital, even though this would reduce risks for Ferrexpo due to its ties to the sanctioned Zhevago. The largest shareholder also stipulated that as a result of the recapitalization, no one other than Verevsky would have a stake greater than 15%. Ferrexpo and Fevamotinico also discussed in detail a short-term unsecured loan of approximately $15 million from the latter, which was intended to provide access to liquidity until the completion of the additional capitalization. Although the parties made significant progress in agreeing on the terms, no binding agreement was concluded, and the parties did not agree on final terms.
As for Verevsky, his requirement as anchor investor was that Ferrexpo refrain from any alternative funding through shares or other transactions. Following the completion of the fundraising, the Kernel owner is expected to own 21.44% of the increased share capital.
The placement was conducted through an accelerated bookbuilding process, with Panmure Liberum Limited and Peel Hunt LLP acting as joint global coordinators and bookrunners. Despite the current restrictions and risks, the listing of which in the documents takes up more than 40 pages of text, a significant portion of which are related to sanctions against Zhevago, the bankruptcy process of the key asset – the Poltava Mining and Processing Plant, and claims from law enforcement and tax authorities – the board of directors believes that Ferrexpo retains significant potential for long-term recovery.
"The Board currently envisages a recovery that will occur in several stages, ranging from short-term stabilization of operations and supply chains to a broader, phased ramp-up of production and ultimately a full restoration of capacity, with the timing of each stage dependent on the development of the war in Ukraine and the Group’s broader operating conditions in Ukraine, the recovery of the Group’s current VAT refunds, the resolution of the Group’s partial or full collection of the overdue net VAT balance from the Ukrainian tax authorities, favourable outcomes in a number of pending litigation matters in the Ukrainian courts, and the satisfaction of additional capital requirements (in addition to net proceeds from borrowings) to support long-term growth," the document states.
The directors reiterated that Ferrexpo’s target maximum production capacity is approximately 12 million tonnes per annum, and that long-term growth prospects remain thanks to the Belanivsky Mining and Processing Plant, a nearby deposit with new potential, whose JORC-rated reserves have declined from 1.7 billion tonnes at the end of 2024 to 614 million tonnes at the end of 2025, as well as the modernization of existing infrastructure and operational, production, and logistics processes.
It is noted that the successful completion of the fundraising and the resolution of liquidity issues will give Ferrexpo additional time to focus its efforts on resolving issues in Ukraine, including continuing dialogue with the relevant authorities, including on the resumption of VAT refunds, which amount to $88 million and the proceeds of which will be used by the Poltava and Yerystovsky Mining and Processing Plants in Ukraine.
Regarding bankruptcy, according to a statement dated August 18, 2026, the Kharkiv Court of Appeal in Kharkiv rejected the appeal of the Poltava Mining and Processing Plant against the decision of the Poltava Regional Commercial Court dated February 24, 2026, to open bankruptcy proceedings. Therefore, on August 21, Poltava Mining and Processing Plant filed a cassation appeal with the Supreme Court.
Ferrexpo is also reportedly in talks with a reputable trade finance provider regarding a secured trade finance facility of up to $30 million at 12% per annum for three years with a maturity date of September 30, 2029. The potential facility is structured so that repayment is made primarily through deductions from the proceeds of product deliveries to the trade finance provider under a related sales and purchase agreement with the group. Collateral for the potential facility will be limited to certain Ferrexpo assets not located in Ukraine. The text also mentions the possibility of selling one or more assets to raise cash, including operating equipment and materials, but notes that the bankruptcy process, sanctions against Zhevago, current legal, fiscal, and regulatory measures against Ferrexpo, and the geopolitical situation in Ukraine significantly limit the company’s ability to manage its assets.
"Furthermore, the Group believes that the further sale of some or all of its assets would materially impact the Group’s future earnings and its ability to remain a viable business," it states, referring to assets outside of Ukraine.
As reported, Ferrexpo recently published its 2025 financial statements after a significant delay. According to the statement, the company’s revenue fell by 16% to $787 million, EBITDA fell 2.5 times to $28 million, and net loss increased almost 4.5 times to $223.9 million.
Pellet production last year decreased by 47% to 3.22 million tonnes, while concentrate production increased 4.1 times to 2.92 million tonnes. In January-June of this year, Ferrexpo produced 1.39 million pellets, a 36% decrease compared to January-June of the previous year.
Ferrexpo owns 100% of Yerystovsky Mining and Processing Plant LLC, 99.9% of Belanivsky Mining and Processing Plant LLC, and 100% of Poltava Mining and Processing Plant PJSC. The London Stock Exchange (LSE) suspended trading in Ferrexpo shares in May due to the company’s failure to publish its annual financial statements on time.