Miner Ferrexpo's production drops to about a third on Ukrainian power disruptions (updated)

Ferrexpo

15/04/2026 08:25

Adds share moves in paragraph 1 & 2nd bullet

April 15 (Reuters) - Ukraine-focused iron ore pellet producer Ferrexpo FXPO.L posted a sharp 72% drop in its first-quarter production on Wednesday, as Russia's renewed attacks on Ukraine's power network disrupted electricity and forced temporary suspensions, sending its shares down nearly 8%.

The miner, grappling with operational and financial setbacks from the war and legal issues involving a major stakeholder, is seeking alternative funding.

Here are some details on first-quarter output and funding options:

The firm produced 592,751 metric tons of iron in the three months ended March 31, compared with 2.1 million tons in the same period a year earlier.

Shares in the firm were down 7.9% at 41.7 pence as of 0705 GMT.

        It said it continued to evaluate several funding options, including raising fresh equity after its Swiss unit's banking partner, MBaer Merchant Bank, was set to be wound down for alleged money-laundering violations and sanction breaches.

Ferrexpo has said it does not expect a material impact on its subsidiaries in Ukraine and expects to recover its deposit with MBaer in full, with no certainty about timelines.

Switzerland-headquartered Ferrexpo had delayed its fiscal 2025 results early this month and said it had cash to last only until June. It did not provide an update on its cash position on Wednesday.

The financing issues first started after its Ukrainian VAT refunds were suspended in March 2025 due to sanctions on Ukrainian billionaire Kostyantin Zhevago, who owns nearly half of the firm.

(Reporting by Prerna Bedi in Bengaluru; Editing by Nivedita Bhattacharjee and Rashmi Aich)

((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))