REG - Ferrexpo plc - Production Report for 4Q 2025

FerrexpoAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260114:nRSN7805Oa&default-theme=true

RNS Number : 7805O  Ferrexpo PLC  14 January 2026

14 January 2026

Ferrexpo plc

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

 

Production Report for 4Q 2025

Ferrexpo plc (LSE: FXPO), a producer and exporter of premium iron ore
products, reports production results for the fourth quarter of 2025 ("the
quarter" or "4Q" or "4Q 2025") and full year to the end of December 2025
("FY2025" and "2025").

Updates

·   Ferrexpo remains committed to the safety and wellbeing of its workforce
and the Group continues to take extensive measures to protect employees, their
families, and local communities.

·   At the end of November 2025, the Group reported an improvement in the
rolling 12-month Lost Time Injury Rate ("LTIFR") to 0.37, falling back below
the historic five-year trailing average of 0.52. Zero workplace fatalities
have been reported for more than five years.

·   Towards the end of the quarter the intensity and frequency of missile
and drone attacks on Ukraine's energy, transport, and port infrastructure
increased. The interruption to power supplies and logistics channels resulted
in 4Q production being below plan.

·   Total production for the quarter was 1.1 million tonnes, comprising 0.7
million tonnes of Fe 67% premium iron ore concentrate and 0.4 million tonnes
of premium iron ore pellets.

·   Total iron ore production for FY2025 remained above 6 million tonnes
for the second year in a row at 6.1 million tonnes. This is 9% lower than the
6.8 million tonnes produced in 2024 despite the challenging condition, still
significantly higher than the 4.2 million tonnes produced in 2023.

·   Throughout 2025, the Group successfully pivoted to shifting market
demand, increasing the production of premium grade iron ore concentrate to an
all-time record of 2.9 million tonnes, 48% of the total production mix
compared to 10% in 2024.

·   The Group continued to work extensively to manage its working capital
and costs in a difficult operating environment. This included reduced working
time for employees, ongoing cuts in procurement of goods and services and the
continued suspension of all non-essential CapEx, overheads, and corporate
social responsibility (CSR) spending.

·   The suspension of VAT refunds continued in the quarter and the total
outstanding VAT stood at US$69 million as at the end of November 2025. If VAT
continues not to be refunded, as at the end of December 2025, the total is
forecast to increase to approximately US$74 million.

·   As at 31 December 2025, the Group's net cash position was approximately
US$47 million (30 June 2025: US$50 million) with lease obligations subject to
potential final year-end adjustments, and no debt.

Summary production statistics

 (tonnes)                     Fe Grade  4Q 2025    3Q 2025    Change  12M 2025   12M 2024   Change
 Total commercial production            1,073,871  1,510,286  -29%    6,141,759  6,780,344  -9%
 Total pellet production                412,867    638,963    -35%    3,221,461  6,070,541  -47%
 DR pellets (FDP)             67%       0          0          -       81,787     489,720    -83%
 Ferrexpo premium pellets     65%       412,867    638,963    -35%    3,139,674  5,580,821  -44%
 Commercial concentrate       67%       661,004    871,323    -24%    2,920,298  709,803    +311%

Commenting on the Group's performance, Lucio Genovese, Interim Executive
Chair, said:

"The final quarter of 2025 was one of the hardest quarters for the business
and our people since the full-scale invasion of Ukraine. Missile and drone
attacks on regional energy infrastructure resulted in interruptions to the
supply of power to our operations.

Our operations teams worked hard to restore production with the limited power
available. Despite all of these challenges, on balance, total production for
the quarter was above one million tonnes, and for the second year in a row,
production was above the six million tonne level. This is more than 50% of our
pre-war capacity and an acceptable production performance given all the
challenges we faced during a fourth year of war.

Since December, however, our ability to export has been constrained because
the Ukrainian Black Sea region was heavily attacked and, until repairs are
conducted and safe maritime access restored, we are once again focussed on
exporting by rail. Although this logistics channel is open, the heavily
electrified state rail network has less power, and therefore the switch to
diesel locomotives means locomotives take longer to pull wagons to the western
border, and due to slower journey and turnaround times, we have leased
additional third-party wagons that incur additional costs.

With the power that the state utility companies can provide us, at the present
time, we are operating one pellet line with additional concentrate production
and are able to produce and export our premium iron ore pellets to service our
European customers. When power, rail and port capacity are restored, there is
an opportunity to increase concentrate production and sales to Asian markets.

Regrettably, in the final days of 2025, we received news of another colleague
who was killed while defending Ukraine, bringing the total killed to 52 since
February 2022. We mourn the passing of all these colleagues, and we pray for
the safe return of the 764 colleagues who are currently serving in the Armed
Forces of Ukraine.

As we follow political developments in Ukraine and abroad, we are hopeful that
an end to the war is near, however we must remain vigilant. We must continue
to work to keep our people safe, whilst we continue our efforts to seek to
recover withheld VAT and ensure the integrity of our assets."

 

For further information, please contact:

 Ferrexpo:
 Nick Bias        n.bias@ferrexpo.ch (mailto:n.bias@ferrexpo.com)             +44 (0)7733 177 831
 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 produces and exports premium grade iron ore products to premium steel
mills around the world, enabling them to reduce carbon emissions and increase
productivity. The Group is headquartered in Switzerland, with assets in
Ukraine and a listing in the equity shares commercial companies category on
the London Stock Exchange (ticker FXPO). Ferrexpo is a constituent of the FTSE
All Share and FTSE4Good indices. For further information, please visit
www.ferrexpo.com (http://www.ferrexpo.com) .

Notes:

Please note that numbers may not add up due to rounding and all numbers
contained herein may be subject to adjustment when the Company reports
Financial Results for the year ended 31 December 2025.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDUOUURNOUAAUR



            Copyright 2019 Regulatory News Service, all rights reserved