Ferrexpo Faces an August Cash Cliff as a 49% Shareholder Sets Terms for a $100 Million Rescue
27.05.2026 - 07:01:55 | boerse-global.de
The clock is ticking for Ferrexpo. The London-listed iron ore producer has until the end of August to secure at least $100 million in fresh equity, or its cash reserves will run dry. The company ended 2025 with roughly $47 million in liquid assets, but operational disruptions in Ukraine and a blocked value-added tax recovery have burned through that buffer far faster than anticipated.
Fevamotinico, which controls 49.32% of the shares, has thrown its weight behind the capital injection — but on strict conditions. The major shareholder has pledged irrevocable support for the necessary resolutions provided the total raise does not exceed $100 million and it is allowed to participate proportionally. That leaves the remaining $50 million-plus to be sourced from other investors or alternative financing, even though institutional parties have already expressed non-binding interest in exceeding that threshold. Detailed terms and existing shareholder agreements have so far stalled a final deal.
The operational picture underscores the urgency. Output in the first quarter of 2026 collapsed by 72% to just 593,000 tonnes, with only one pellet production line still running. That level of production generates barely enough organic revenue to cover costs, let alone rebuild working capital. Compounding the problem, Ferrexpo’s core operating subsidiary Poltava Mining is facing insolvency proceedings, raising the spectre of a broader group-level restructuring.
Should investors sell immediately? Or is it worth buying Ferrexpo?
A $7.7 million ship sale has done little to plug the gap, especially when set against a $90 million hole in Ukrainian VAT refunds that remains mired in a bureaucratic and legal quagmire. That tax deadlock alone has already strained liquidity and contributed to the auditors’ refusal to issue a going-concern opinion.
Because the audited 2025 annual report could not be filed without that confirmation, trading in Ferrexpo’s shares has been suspended on the London Stock Exchange since early May. Until a viable financing solution is finalised, the suspension will remain in place. The board sees the $100 million capital raise as the only realistic way to fund operations for the next 18 months, even at reduced capacity.
All eyes are now on whether Fevamotinico’s conditional backing can be turned into a completed deal before August. If the cash runs out first, Ferrexpo’s fight for survival may be over before the shareholders get another chance to vote.
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