Ferrexpo (LSE:FXPO) has resumed production at its Ferrexpo Poltava Mining (FPM) operation in Ukraine after a temporary halt in January, supported by improved availability and pricing of both domestic and imported electricity.
Currently, one pellet production line is back in operation, and the company has restarted exports of its premium iron ore pellets to customers across Eastern and Central Europe. Ferrexpo is utilising its own rail wagon fleet to support logistics, demonstrating continued operational resilience despite ongoing infrastructure and energy challenges linked to the regional environment.
Separately, the company disclosed that its Swiss trading subsidiary, Ferrexpo AG, holds approximately US$3 million in deposits with MBaer Merchant Bank, which recently had its banking licence revoked and has entered liquidation. Ferrexpo said it currently expects to recover the full amount of the deposit.
While the issue is not expected to materially affect operations in Ukraine, the company noted that difficulties in establishing alternative cross-border banking arrangements for Ferrexpo AG could create risks if not resolved promptly.
From an outlook perspective, Ferrexpo continues to face financial pressures stemming from declining revenue and profitability. However, technical indicators for the stock suggest stronger momentum in the market. Valuation remains challenging due to negative earnings. Recent corporate developments highlight both the operational challenges facing the company and its ability to maintain production and exports in a difficult environment.
More about Ferrexpo
Ferrexpo is a Swiss-headquartered iron ore producer with major mining and processing operations in Ukraine and a primary listing on the London Stock Exchange under the ticker FXPO. The company supplies high-grade iron ore pellets to steelmakers around the world, positioning its products as a higher-efficiency and lower-carbon feedstock for modern steel production. Ferrexpo has more than 50 years of operational history in the iron ore sector.
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