Trading Update
Ferrexpo plc has resumed production with one pellet line operating following disruptions from attacks on Ukrainian energy infrastructure, though it continues to manage working capital and costs through reduced working hours and suspended non-essential CapEx. The company faces ongoing withholding of VAT refunds, with US$80 million expected outstanding by the end of March 2026. As of March 31, 2026, Ferrexpo had US$35 million in available cash and a net cash position of approximately US$25 million, with net accessible cash of US$22 million excluding funds held with MBaer Merchant Bank. The Group estimates sufficient cash until at least the end of June 2026 but is exploring funding options, including an equity raise, as continued VAT refund issues and unresolved funding could lead to material negative consequences. The company also requires more time to finalize its Full Year 2025 Financial Accounts, expecting to report on or before April 30, 2026.
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Ferrexpo plc (LSE: FXPO) provides an update on the Group's current trading.
As previously announced, attacks on Ukrainian energy infrastructure in January 2026 resulted in the Company suspending operations. Following improvements in the availability and price of electricity, production restarted in February 2026, and one pellet line continues to be in operation.
The Group's focus has been to manage its working capital and costs throughout this challenging operating environment. This has 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 spending.
The withholding of VAT refunds has continued in the first quarter of 2026. The total outstanding VAT refunds is expected to be US$80 million at the end of March 2026.
As at 31 March 2026, the Group's available cash was US$35 million with no debt except for lease liabilities resulting in a net cash position of approximately US$25 million (31 December 2025: US$47 million, 27 February 2026: US$30 million). Excluding the Group's funds held with MBaer Merchant Bank, with reference to the announcement on 9 March 2026, as at 31 March 2026, the Group had net accessible cash of approximately US$22 million.
Although the Group remains focused on managing its costs and optimising its sales mix, based on the forecasted cash burn, the Group estimates that it has sufficient cash until at least the end of June 2026. The Group is actively exploring a number of potential funding options, which could include an equity capital raise. At this stage there can be no certainty that the Group will be successful in concluding such funding options. If the withholding of VAT refunds continues and funding issues are not resolved in sufficient time, this could give rise to material negative consequences for the Group.
Given the number of issues facing the Group, the Company requires more time to finalise its Full Year 2025 Financial Accounts, however, the Company does expect to report on or before 30 April 2026.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.