Ferrexpo Sinks as Iron Ore Weakness Compounds First-Half Losses
Published on 09/29/2026 at 20:40 | Editorial boerse-global.de
Shares in Ferrexpo came under heavy selling pressure on Tuesday, sliding as a broad retreat in commodity markets magnified the fallout from a bruising set of first-half figures. The London-listed Ukrainian iron ore miner fell 9.1% to EUR 0.3694, with a separate reading putting the decline at 9.5% to EUR 0.3678.
The drop extends a torrid run for the stock, which has now lost 59% of its value since the start of the year.
Iron ore futures declined for a third straight session, weighed down by rising port arrivals and soft steel demand ahead of China's National Day holidays, according to Reuters. The chill rippled across the mining sector, but Ferrexpo had little cushion to absorb it.
Output Halved as War Takes Its Toll
The company's first-half 2026 results, released last Friday, laid bare the scale of the operational strain. Commercial production collapsed 54% year on year to 1.556 million tonnes, while revenue tumbled 57% to USD 196 million. Adjusted EBITDA swung to a loss of USD 4 million.
Should investors sell immediately? Or is it worth buying Ferrexpo?
Management has been forced to run just a single pelletising line, citing a strained financial position and persistent logistics difficulties. Attacks on Ukraine's power infrastructure have repeatedly halted output, while outstanding VAT refunds and legal disputes continue to squeeze liquidity. The half-year report explicitly flags going-concern risks tied to proceedings in Ukraine.
A Recapitalisation and a Ratings Exit
The weak numbers landed barely a week after shareholders approved sweeping balance-sheet measures at a general meeting. The package included a capital raise of roughly USD 100 million through the issuance of 448,848,484 new ordinary shares. A USD 15 million unsecured loan from Fevamotinico S.à r.l. was settled by offsetting it against subscription amounts.
Ownership has shifted alongside the fundraising. Major shareholder Andrii Verevskyi expanded his influence, disclosing a stake of 21.99% of voting rights. In the opposite direction, BlackRock trimmed its holding, with its position in voting rights and financial instruments falling below the 5% notification threshold after previously sitting exactly on that mark. The stock has gained 7.3% since the shareholder vote.
Rating agency Fitch, meanwhile, withdrew its credit ratings for Ferrexpo after the company opted to stop participating in the rating process. No reasons were given for the move.
What Comes Next
For the shares to find a durable floor, investors will be watching whether output can be ramped up in the months ahead and whether the operating loss can be contained. The twin drag of an earnings slump and dilution from the new stock has left sentiment badly dented.
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