Ferrexpo Resumes Ukraine Pellet Production After Fundraising
Ferrexpo Resumes Ukraine Pellet Production After Fundraising
Anonymous
Key Points
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Ferrexpo’s net cash position, excluding lease liabilities, fell to approximately $21 million as of June 30, 2026, from $25 million at the end of March and $47 million at the end of 2025.
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The company’s Ukrainian asset base includes 100% ownership of Yeristovo Mining LLC, 99.9% of Belanovo Mining LLC and all shares in PJSC Poltava Mining.
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Trading in Ferrexpo shares had been suspended by the London Stock Exchange in May because the company was unable to publish its annual financial statements on time.
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Although the shares rose to about 35 pence after the restart announcement, they remained well below their 52-week high of 87.1 pence; an early intraday peak was reported at 36.88 pence.
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Acting CEO Lucio Genovese credited Ferrexpo’s workforce for bringing the operation back online over the weekend, saying employees had again shown their “commitment and determination.”
Ferrexpo restarted iron ore pellet production at its Ukrainian facility on September 7, 2026, marking a major recovery after a production halt in August. The Kalkinema restart followed a $100 million fundraising round completed just days earlier. The company will focus exports on European customers due to continuing attacks on Black Sea ports and shipping routes.
Ferrexpo's stock surged more than 22% in early London trading after the announcement, reaching 36.88 pence intraday. However, shares remain far below their 52-week high of 87.1 pence. The restart uses just one pellet line and represents what the company called an "important operational step," though it has not announced production targets or expansion timelines.
Cash Crisis Forces Production Pause in August
Ferrexpo halted production in August to preserve cash and manage security risks from ongoing attacks on Ukrainian infrastructure. The company's net cash position had eroded sharply. As of June 30, 2026, Ferrexpo held just $21 million in net cash, down from $25 million three months earlier and $47 million at the end of 2025. Without the fundraising, the company lacked resources to operate safely.
Trading Halt Lifted After Financial Reboot
The London Stock Exchange had suspended trading in Ferrexpo shares in May after the company failed to publish annual financial statements on time. The $100 million capital raise, completed on September 4, 2026, restored the company's financial footing. Head Topics reported that shares resumed trading immediately after the production restart announcement, with investors rewarding the news with sharp gains.
European Exports Replace Black Sea Shipments
Ferrexpo explicitly prioritized European customers for its resumed pellet exports, citing persistent threats to Black Sea shipping. Sustained missile and drone attacks on ports and vessels have made the southern route too risky. The company operates 100% of Yeristovo Mining, 99.9% of Belanovo Mining, and all shares in PJSC Poltava Mining — a vast Ukrainian asset base that remained operational despite the production freeze.
CEO Praises Staff for Weekend Restart
Acting CEO Lucio Genovese highlighted Ferrexpo's Ukrainian workforce for restarting the facility over a single weekend. He called the employees' performance a demonstration of their "commitment and determination" despite the war. The one-line restart represents a first step; the company has not announced plans to reopen additional pellet lines or when full capacity production might resume.
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