Ferrexpo's Governance Paralysis: No Accounts, No Trade, and a $100 Million Hole to Fill
Published on 06/27/2026 at 15:53 | Redaktion boerse-global.de
Ferrexpo's production has collapsed to levels not seen in years. The Ukrainian iron ore pellet producer mined just 593,000 tonnes in the first quarter of 2026, a 72% plunge from the same period last year and a 45% drop from the final quarter of 2025. Only one of its four pelletising lines is operating, kept alive by improved domestic power supply after Ukraine's energy grid began to stabilise. All non-essential investment has been halted.
The output slump has accelerated a cash crisis that was already acute. At the end of March, Ferrexpo held $35 million in total liquidity, of which only $22 million was freely accessible. Another tranche is trapped at the MBaer Merchant Bank, which has entered liquidation. On top of that, the company is owed roughly $80 million in unpaid value-added tax refunds from Ukrainian authorities. The miner had warned its reserves would only cover operations until the end of June — just days after the annual general meeting scheduled for late June.
The AGM will be a pared-back affair. Ferrexpo has been unable to publish its audited 2025 accounts on time, so there will be no vote on the annual report, no reappointment of auditors, and no approval of the remuneration report. The only items on the agenda are the re-election of directors and the renewal of a share buyback authority. Vitalii Lisovenko, a board member for more than nine years, is stepping down. A separate extraordinary general meeting will be called once the audit is finished.
Should investors sell immediately? Or is it worth buying Ferrexpo?
That audit is the single bottleneck holding everything else up. The Financial Conduct Authority suspended trading in Ferrexpo's shares at the company's own request in early May 2026, with the last recorded price at 28.58 pence. The suspension will remain in place until the audit is completed and a credible financing solution is presented. Ferrexpo's board has made clear that it needs to close a capital raising of around $100 million to secure working capital for the next 18 months and to allow the accounts to be prepared on a going-concern basis.
The broader context is no less grim. Ukraine's total iron ore exports fell 26% in the first five months of 2026 to roughly 10 million tonnes, dragged down by port congestion, disrupted rail links, and persistent security threats. Ferrexpo, which ships its pellets from central Ukraine, is entirely dependent on those routes.
Whether the AGM will restore any investor confidence depends entirely on whether the company can demonstrate concrete progress towards that $100 million injection — and on when the long-delayed audited accounts finally see the light of day. The audit remains the key that unlocks every other door.
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