Production Report for 1Q 2026
Ferrexpo plc reported first quarter 2026 production of 593 thousand tonnes, significantly impacted by nationwide attacks on Ukraine's electricity infrastructure which led to a temporary suspension of operations. Production recommenced in late February at reduced capacity, with one pellet line now operational and sales continuing to European customers. The company is managing working capital and costs, including reduced working time and suspended non-essential capital expenditure, while actively exploring funding options, potentially including an equity raise, as unresolved VAT refund issues could have material negative consequences.
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Ferrexpo plc (LSE: FXPO), a producer and exporter of premium iron ore products, reports production results for the first quarter of 2026 ("the quarter" or "1Q" or "1Q 2026").
Production Report
- At the end of February 2026, the Group reported an improvement in the rolling 12-month Lost Time Injury Rate ("LTIFR") to 0.17, falling back below the historic five-year trailing average of 0.44. Zero workplace fatalities have been reported for more than five years.
- Total production for the quarter was 593 thousand tonnes, comprising 68 thousand tonnes of Fe 67% premium iron ore concentrate and 525 thousand tonnes of premium iron ore pellets.
- As previously announced, production activities were largely suspended in Q1 due to nationwide attacks on Ukrainian electricity generation and transmission infrastructure.
- Production recommenced with only limited resumption of operations at reduced capacity levels in late February 2026 following improvements in the availability and price of electricity supply. The Group continues to operate one of its four pellet lines and sell its products to European customers.
- As set out in the Trading Update announced on 1 April 2026, the Group's focus has been to extensively manage its working capital and costs in a difficult 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 (CSR) spending.
- The Company continues to closely monitor its cash and working capital position and has continued to actively explore and progress 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.
Summary production statistics
| (tonnes) | Fe Grade | 1Q 2026 | 4Q 2025 | Change | 1Q 2026 | 1Q 2025 | Change |
|---|---|---|---|---|---|---|---|
| Total commercial production | 592,751 | 1,073,871 | -45% | 592,751 | 2,125,467 | -72% | |
| Total pellet production | 524,926 | 412,867 | +27% | 524,926 | 1,347,749 | -61% | |
| DR pellets (FDP) | 67% | 0 | 0 | - | 0 | 81,787 | -100% |
| Ferrexpo premium pellets | 65% | 524,926 | 412,867 | +27% | 524,926 | 1,105,049 | -52% |
| Other pellets | 65% | 0 | 0 | - | 0 | 160,913 | -100% |
| Commercial concentrate | 67% | 67,825 | 661,004 | -90% | 67,825 | 777,718 | -91% |
Commenting on the Group's performance, Lucio Genovese, Interim Executive Chair, said:
"The lower production numbers in the first quarter, at almost half of what we achieved in the final three months of 2025, reflect focused Russian attacks on Ukraine's power and energy infrastructure late last year and the resultant impact on our ability to operate sustainably. By January, given the supply of electricity could not be assured on a sustainable basis in the volumes required, we were forced to make the difficult decision to temporarily suspend operations and place a part of the workforce on furlough.
Fortunately in late February we saw sufficient improvements in the availability and price of electricity to restart limited production at FPM on one pellet line. One pellet line remains in operation, and the Group continues to use its own fleet of rail wagons to export to customers in Eastern and Central Europe.
We are grateful for the hard work across the country that has enabled repairs to be completed quickly. I am also grateful to colleagues who have worked tirelessly to restart the operations of one pellet line. This demonstrates, once again, our ability to be flexible and agile in a very challenging environment.
Going forward, our focus remains on managing working capital and costs throughout this challenging operating environment."
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