Ferrexpo is pursuing a potential equity capital raise of at least USD 100 mln to support its working capital position, with the board stating this is currently the only viable funding option within the required timeframe.
The company said its net accessible cash is sufficient only until approximately the end of August 2026, even after accounting for proceeds from the USD 7.7 mln sale of its Iron Destiny transshipment vessel, which is expected to complete later this month. The vessel has been underutilized since the start of the war while continuing to incur maintenance costs, prompting the decision to divest.
The proposed fundraising would involve a placement of new shares to existing and new institutional investors, subject to board approval, market conditions and shareholder approval. Proceeds are expected to support operations at reduced capacity over the next 18 months and stabilize liquidity.
Ferrexpo warned that failure to complete the fundraising could result in a cash shortfall by late August 2026, raising the risk of insolvency and potential loss of shareholder value.
The company’s financial position has been impacted by ongoing disruptions in Ukraine, including power shortages, logistics constraints and the suspension of VAT refunds, which have significantly reduced liquidity. Operating rates remain constrained, with only one pellet line currently in operation.
Ferrexpo, headquartered in Switzerland with assets in Ukraine, produces high-grade iron ore products for the global steel industry. Before Russia’s full-scale invasion in 2022, the company was the world’s third-largest exporter of iron ore pellets.