Ferrexpo

Ferrexpo provided an update on its proposed $100m equity raise, confirming plans to proceed with a conditional placing of new shares to existing and new investors to support working capital and sustain operations at a reduced level for the next 18 months. The company warned that the capital increase must be completed by Apr. 30 to enable publication of audited financial results; otherwise, its shares could be suspended from trading on the LSE. Completion of the transaction requires shareholder approval at a general meeting, which the company intends to convene shortly. Ferrexpo also clarified that its largest shareholder, Ukrainian businessman Kostyantyn Zhevago (via Fevamotinico S.a.r.l., 49.3% stake), does not perform any role on behalf of the company. However, he retains the right to appoint himself or another individual as a non-executive director, as well as has certain information rights. These rights would terminate if Fevamotinico’s stake falls below 24.9%, though the Board does not expect this to occur as a result of the capital raise. The company noted that Zhevago — who is subject to multiple legal proceedings in Ukraine and other jurisdictions, including sanctions in Ukraine — has been deemed closely connected to Ferrexpo by Ukrainian courts, regulators, and other stakeholders. As a result, the company remains exposed to various legal and enforcement actions, including the suspension of VAT refunds. Ferrexpo warned that failure to complete the capital raise, combined with the continued suspension of VAT refunds, would likely force its subsidiaries — including its core asset, Ferrexpo Poltava Mining — to file for insolvency. The company also provided updates on ongoing legal proceedings, including bankruptcy cases, VAT refund disputes, alleged embezzlement from Finance & Credit Bank, and the transfer of certain corporate rights to Ukraine’s Asset Recovery and Management Agency (ARMA). Lastly, Ferrexpo reported selected unaudited 2025 financials, with revenues down 16% y-o-y to $787m and EBITDA down 59% to $28m. Net operating cash flow dropped to $3m (vs. $92m in 2024), while CAPEX halved to $49m. End-2025 debt consisted of $11m in lease liabilities (+2.2x y-o-y), while cash declined 45% to $58m, implying net cash of $47m (-53% y-o-y).

Ferrexpo reported that it continues to explore potential funding options, including an equity capital increase. Following discussions with existing and prospective investors, the Board considers an equity injection the most viable solution. The proposed transaction would likely take the form of a conditional placing of new shares to existing and new institutional investors, targeting at least $100m to support working capital and sustain reduced operations for the next 18 months. For this purpose, the company plans to convene a general shareholders’ meeting as soon as possible to approve relevant resolutions.