Ferrexpo (LSE:FXPO) is seeking to raise at least $100 million in new equity to stabilise its finances and sustain operations, which have been heavily impacted by the ongoing war in Ukraine, repeated attacks on energy infrastructure, and the suspension of VAT refunds tied to its links with sanctioned beneficiary Kostiantyn Zhevago. The company has recently sold a transhipping vessel for $7.7 million as part of its efforts to boost liquidity, but has warned that failure to complete the proposed capital raise by 30 April 2026 could lead to a suspension of its shares and prevent it from preparing its 2025 accounts on a going concern basis.
The group’s cash reserves have fallen to around $20 million, with management indicating that available funds—including proceeds from the vessel sale—are expected to last only until late August 2026 under current operating conditions. The planned equity placing, targeting both existing and new institutional investors, remains subject to approvals from the board, shareholders, and the market, as well as backing from major shareholder Fevamotinico. Ferrexpo has described the fundraising as its only realistic short-term option to maintain reduced production levels, safeguard jobs and community contributions, and potentially restore operations to more sustainable levels if successfully executed.
The company’s outlook continues to be shaped by difficult financial conditions, including declining revenues and profitability. While technical indicators suggest relatively strong market momentum, valuation remains under pressure due to negative earnings. Recent corporate developments underscore both the operational challenges facing the business and its efforts to navigate a highly complex environment while maintaining responsible operations.
More about Ferrexpo
Ferrexpo plc is a London-listed iron ore producer focused on supplying high-quality pellets and concentrates to global steelmakers, particularly in Asia and China. Its core mining and processing operations are based in Ukraine, with exports reliant on Black Sea logistics, leaving the company exposed to ongoing geopolitical, infrastructure, and energy-related risks in the region.
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