Ferrexpo Faces Trading Suspension After $100 Million Rescue Falls Through

Ferrexpo faces immediate trading suspension on the LSE after failing to secure $100M recapitalization, with cash reserves dwindling and production hit by war.

The clock has run out for Ferrexpo. The iron ore pellet producer has failed to secure the $100 million capital injection needed to keep its London listing alive, despite receiving expressions of interest from institutional investors that exceeded the target amount.

Non-binding commitments had been submitted by both new investors and the company's largest shareholder, Fevamotinico, which holds a 49.32 percent stake. Fevamotinico had pledged to vote in favour of the necessary resolutions and participate proportionally in the fundraising, up to a maximum of $100 million. But the conditions attached to those offers proved impossible to satisfy within the available timeframe, according to a company statement released on Tuesday.

The consequences are immediate and severe. From 7:30am on 1 May, trading in Ferrexpo shares will be suspended on the London Stock Exchange. The suspension will remain in place until the company completes its audit and publishes its annual report for 2025 — both of which depend on the success of the recapitalisation. The regulatory deadline for the audited accounts expires on 30 April.

Banking Options Closed Off

Alternative financing through the credit markets is effectively unavailable. Banks have refused to extend new lines to the group, citing money laundering regulations and compliance risks tied to majority owner Kostyantin Zhevago. A further obstacle is that key assets — including stakes in Ukrainian subsidiaries — have been frozen by government orders, leaving the company with no meaningful collateral to offer lenders.

The Ukrainian state has compounded the cash squeeze. Tax authorities continue to block value-added tax refunds, with outstanding claims totalling roughly $90 million at the end of March.

Cash Reserves Dwindling Fast

Panmure Liberum analyst Duncan Hay has already responded to the deteriorating situation, withdrawing his forecasts for the company and placing the stock "Under Review". He cited the thin cash position and the lack of clarity around short-term funding.

Ferrexpo's financial cushion is shrinking rapidly. By mid-April, the company held just $17 million in freely available cash. Even including proceeds from the planned sale of the vessel "Iron Destiny", management estimates that liquidity will last only until the end of August 2026.

Production Slumps as War Takes Its Toll

The operational picture is equally grim. Russian strikes on Ukraine's energy infrastructure forced widespread shutdowns during the first quarter, sending iron ore production crashing by 72 percent year-on-year to roughly 593,000 tonnes. Operations only resumed at reduced capacity in late February, once power supplies had stabilised.

Without the $100 million from the failed capital raise, Ferrexpo cannot secure a clean audit opinion on its 2025 financial statements. The shares will remain suspended until management can present a viable financing solution and deliver the audited report — a timeline that now looks increasingly uncertain.