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Ferrexpo pursuing $100m equity raise to shore up liquidity
By Josh White
Date: Wednesday 22 Apr 2026
(Sharecast News) - Ferrexpo said in an update on Wednesday that it was pursuing a potential equity capital raise of at least $100m as it looked to shore up liquidity amid ongoing operational disruption and financial pressure linked to the war in Ukraine.
The London-listed miner said an equity raise was "currently the only viable solution in the timeframe required" to support its working capital needs, with the proposed fundraising expected to be structured as a conditional placing of new shares to institutional investors.
It added that the proceeds would allow it to continue operating at reduced capacity over the next 18 months and maintain its status as a going concern.
Ferrexpo warned that, without fresh funding, it expected to have sufficient net accessible cash only until around the end of August.
As at 17 April, net cash stood at about $20m, or $17m excluding restricted funds, down from $47m at the end of 2025 and $101m at the end of 2024.
The group said it had also agreed to sell its transhipping vessel 'Iron Destiny' for $7.7m, with completion expected later this month.
Ferrexpo said its liquidity position had been severely impacted by the continued suspension of VAT refunds by Ukrainian tax authorities since March 2025, with a net VAT receivable balance of $90.3m as at 31 March this year.
Of that, $69.4m relating to 2025 had been refused, which the authorities linked to the group's association with Kostiantyn Zhevago, a former chief executive and beneficiary of its largest shareholder.
Ferrexpo said it was continuing to operate in a "highly constrained environment", with production running at around a quarter of pre-war capacity due to energy shortages, logistics disruptions and workforce pressures.
First-quarter output totalled 593,000 tonnes, including 525,000 tonnes of pellets and 68,000 tonnes of concentrate.
The group said the fundraising would need to be completed by 30 April to allow publication of its audited 2025 results.
Failure to meet that deadline would likely result in a suspension of its shares from trading from 1 May until a funding solution was secured and accounts are published.
It added that there was "no certainty" the fundraising or any alternative financing can be completed.
Ferrexpo outlined a range of alternative funding options it had explored, including debt financing, asset disposals and trade finance, but said they were either unavailable or insufficient due to sanctions-related constraints, legal proceedings and the group's inability to offer security over assets.
The firm also noted that further cost-cutting or care-and-maintenance measures would not deliver the required liquidity and could damage longer-term prospects.
Its board said that failure to secure funding would likely leave the group unable to continue as a going concern, raising the prospect of insolvency and the potential for shareholders to lose all or a substantial portion of their investment.
Despite the near-term challenges, Ferrexpo said it retained longer-term recovery potential, targeting a phased return to its 12 million tonne annual production capacity, with recovery to pre-war levels expected to begin from 2028, subject to improvements in its operating environment and access to capital.
At 0948 BST, shares in Ferrexpo were down 10.65% at 38.56p.
Reporting by Josh White for Sharecast.com.
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