REG - Ferrexpo plc - Sale of Iron Destiny and Update on Funding Options

FerrexpoAnnouncement

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RNS Number : 0931B  Ferrexpo PLC  20 April 2026

20 April 2026

Ferrexpo plc

("Ferrexpo" or the "Company" or the "Group")

 

Sale of Iron Destiny and Update on Funding Options

Ferrexpo plc (LSE: FXPO), a producer and exporter of premium iron ore
products, today announces it has entered into an agreement to sell a
transhipping vessel and provides an update on the Group's current funding
position.

Sale of Iron Destiny

The Company has entered into an agreement for the sale of its owned
transhipping vessel "Iron Destiny" for a total net cash consideration of
US$7.7 million. The sale remains subject to delivery of the vessel and
customary closing conditions and is expected to complete later this month.

Throughout the period since the commencement of the war, the Group's ability
to utilise the transhipping vessel has been constrained, and it has not been
possible to operate the "Iron Destiny" as a transhipper. Notwithstanding the
underutilisation of the vessel, the Group has continued to incur ongoing
maintenance and sustaining capital expenditure on a monthly basis in order to
keep the "Iron Destiny" in a seaworthy state.

Given the uncertainty relating to the timing of any end to the war and the
return of the Group's ability to fully utilise the "Iron Destiny" as a
transhipper, and taking into account the increasing maintenance and capital
costs associated with retaining the vessel and that the vessel is approaching
the end of its useful life, the Board has determined that a sale of the "Iron
Destiny" would be in the best interests of the Group, in order to both receive
an immediate cash injection and minimise the ongoing monthly maintenance and
future capital expenditure.

 

Funding Options

The Group remains focused on managing its costs and optimising its sales mix.
Taking into account the proceeds which will be received from the sale of "Iron
Destiny" at completion, the Group currently estimates that it has extended the
runway of having sufficient net accessible cash from at least the end of June
2026 to until approximately the end of August 2026. This estimate remains
subject to the volatility of iron ore pricing, operating expenses (including
energy costs) and in circumstances where there are no material changes to the
operating conditions of the Group, including energy supply, and no restrictive
measures are put in place by the insolvency manager appointed within Ferrexpo
Poltava Mining ("FPM") and there are no negative outcomes to the various
proceedings to which the Group are currently subject.

As announced on 1 April 2026 and 15 April 2026, the Group has been actively
exploring a number of potential funding options, including an equity capital
raise.

The Board confirms that, following discussions with existing and certain
potential new institutional investors, it believes that an equity capital
raise is currently the most viable solution in the timeframe required. Any
such equity capital raise would likely be structured as a conditional placing
of new shares to existing and new institutional investors to raise a minimum
of US$100 million to support the working capital position of the Group and
meet the Group's short-term operational requirements while operating at a
reduced level for the next 18 months (the "Possible Fundraise").

Completion of any Possible Fundraise would be subject to, amongst other
things, the passing of resolutions at a general meeting of the shareholders to
be convened as early as possible following the launch of any Possible
Fundraise (the "General Meeting"). The Company does not intend to publish a
prospectus in connection with any Possible Fundraise.

As at the date of this announcement, the Company has engaged with Fevamotinico
S.a.r.l. ("Fevamotinico"), its largest shareholder, which currently holds
294,993,686 Ordinary Shares being 49.32 percent of the existing Ordinary
Shares in issue (excluding Ordinary Shares held in treasury), as to whether
Fevamotinico would provide support for the shareholder resolutions at the
General Meeting. These discussions remain ongoing given the impact any
Possible Fundraise may have on the dilution of the interests held by
Fevamotinico and its desire to participate in any Possible Fundraise.

The Group intends to provide an update on any Possible Fundraise in due course
and, at this stage, there can be no certainty that the Group will be
successful in progressing towards any Possible Fundraise, or any alternative
funding solution, within a suitable timeframe, or at all.

 

This announcement contains inside information. The person responsible for the
release of this announcement is Mark Gregory, Group Company Secretary.

 

For further information, please contact:

 Ferrexpo:
                                                                              via Tavistock
 Tavistock:
 Jos Simson       ferrexpo@tavistock.co.uk (mailto:ferrexpo@tavistock.co.uk)  +44 (0)7899 870 450

 Gareth Tredway                                                               +44 (0)7785 974 264

About Ferrexpo:

Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine and
a listing in the equity shares commercial companies category on the London
Stock Exchange (ticker FXPO) and a constituent of the FTSE All Share and
FTSE4Good indices. The Group produces premium grade iron ore products sold to
the global steel industry and enabling steel makers to reduce carbon emissions
and increase productivity. Ferrexpo's operations have been supplying the
global steel industry for over 50 years with a customer base comprising of
premium steel mills around the world. For further information, please visit
www.ferrexpo.com (http://www.ferrexpo.com) .

Disclaimers:

This announcement does not contain or constitute an offer for the sale of
securities, nor the solicitation of an offer to purchase or subscribe for
securities, in any jurisdiction. This announcement can neither be relied on
for any investment contract or decision, nor should its contents be construed
as legal, business or tax advice.

 

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