15th Apr 2026 13:25
(Alliance News) - Ferrexpo PLC on Wednesday reported a decline first-quarter output as the iron ore pellet producer continues to be hurt by "attacks on Ukrainian electricity generation and transmission infrastructure" as the war with Russia persists.
The Baar, Switzerland-based iron ore producer in Ukraine reported total commercial production of 592,751 tonnes for the first quarter of 2026, down 72% from 2.1 million tonnes a year earlier.
This output comprised 67,825 tonnes of premium iron ore concentrate, down 91% on-year, and 524,926 tonnes of premium iron ore pellets, down 61%.
As the company has previously stated, production activities were "largely suspended" during the first quarter, owing to "nationwide attacks on Ukrainian electricity generation and transmission infrastructure".
Ferrexpo noted that production recommenced with limited resumption of operations at reduced capacity levels at the end of February. This was as a result of improvements in the availability and price of electricity supply.
The company said it is continuing to monitor its cash and working capital position, as well as actively explore funding options such as an equity raise. It added that if the withholding of VAT refunds persists, and funding issues are not resolved, "this could give rise to material negative consequences for the group".
Shares in Ferrexpo fell 2.9% to 43.62 pence on Wednesday afternoon in London.
"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," said Interim Executive Chair Lucio Genovese.
"Going forward, our focus remains on managing working capital and costs throughout this challenging operating environment."
By Christopher Ward, Alliance News reporter
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