Ferrexpo halts Ukraine operations on war risk as financial woes linger
Ferrexpo halts Ukraine operations on war risk as financial woes linger Aug 5 (Reuters) - UK-listed Ferrexpo FXPO.L temporarily suspended its Ukraine production operations on Wednesday due to war-related risks and said the resumption was dependent on the injection of working capital into the iron ore pellet producer.
Here are some details and background on Ferrexpo's struggles:
The Ukraine-focused miner's financial struggles have been exacerbated by the renewed drone attacks by Russia in the Black Sea region, which the firm uses to export its pellets.
The company is currently able to supply its European customers from existing inventory stockpiles, Ferrexpo said.
The firm, whose shares have been suspended from trading since May after it failed to secure additional funding, said it expects its net accessible cash resources to be sufficient until mid-September.
The vessel carrying its DR-grade pellet exports, struck by drones in late July, has been successfully retrieved from the war-prone area in the Black Sea and is headed towards the nearest port, the firm said.
The Swiss-headquartered miner has been working to stave off insolvency after suspension of value-added tax refunds, combined with attacks on Ukraine's energy grid, severely strained the company's finances.
(Reporting by Prerna Bedi in Bengaluru; Editing by Rashmi Aich)
((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))