Ferrexpo has warned that disruptions to its Black Sea export operations following a drone attack on a vessel carrying its iron ore pellets have materially affected the company’s liquidity, with accessible cash expected to last until the end of August 2026.
The miner said a vessel carrying 55,000 tons of direct reduction (DR)-grade iron ore pellets to customers in the Middle East was struck and damaged by Russian drones while sailing in Ukrainian waters. One crew member was killed in the attack, while the remaining crew were rescued.
Following the incident, shipowners have cancelled vessel fixtures for Ukrainian Black Sea ports, preventing Ferrexpo from loading additional cargoes through the route for the foreseeable future.
The company currently has around 189,000 tons of pellets designated for shipment, including 90,000 tons of DR-grade pellets held in stockpiles, with a combined production and delivery cost of approximately USD 20 mln.
Ferrexpo said the disruption has undermined its plans to increase exports of DR-grade pellets during the second half of 2026 and has further weakened its liquidity position. The company is evaluating operational and financial measures to mitigate the impact while continuing preparations for a planned equity fundraising of at least USD 100 mln to support working capital.
The company added that it has notified its insurers of the incident and is pursuing claims under its existing insurance coverage.
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.