1st Apr 2026 11:33
(Alliance News) - Ferrexpo PLC on Wednesday disclosed it has enough cash to last until the end of June, and is as such exploring potential funding options, including an equity capital raise.
The funding woes stem from the decision by Ukraine's authorities to withhold value added tax refunds, in addition to the company having accounts with a Swiss bank which collapsed last month.
Shares in Ferrexpo were down 8.8% to 44.00 pence each on Wednesday morning in London.
The Baar, Switzerland-based iron ore producer in Ukraine said that there can be no certainty that the company will be successful in concluding such funding options, which it said could include an equity capital raise.
"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", Ferrexpo said in a trading update. Ukrainian authorities continued to withhold VAT refunds in the first quarter of 2026, the company added.
Ferrexpo said that it expects total outstanding VAT refunds to be around USD80 million at the end of March.
It also said it has available cash of USD35 million with no debt except for lease liabilities, resulting in a net cash position of approximately USD25 million.
USD22 million are available to the company once excluding the funds held with MBaer Merchant Bank AG, which had its licence revoked and was ordered to liquidate by the Swiss national banking regulator last month.
The bank's liquidators said that MBaer has sufficient assets to satisfy all clients and creditors in full, and as such Ferrexpo expects to recover its deposit in full despite uncertainty around the timing.
Based on the forecasted cash burn, Ferrexpo expects the money last "until at least the end of June".
Ferrexpo said that one pellet line continues to be in operation, as improvements in the availability and price of electricity allowed the company to restart production in February. It had to suspend operations in January in the wake of attacks to the country's energy infrastructure.
Its focus has been to manage its capital and costs while optimising its sales mix in this trading environment, it said, including by reducing working time for employees, cutting procurements of good and services, and suspending all non-essential capital and social responsibility expenses.
The company said it now expects to report its 2025 full-year results on April 30, saying it requires more time to finalise its accounts.
By Martin Miraglia, Alliance News reporter
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