Ferrexpo Halts Interim Payout as BlackRock Crosses 5% Threshold

Ferrexpo suspended its interim dividend after a 54% output drop drove a USD 11.0 million pre-tax loss in the first half of 2026.

Ferrexpo has scrapped its interim dividend after a collapse in output linked to the war in Ukraine drove the iron ore miner deep into loss-making territory during the first half of 2026.

The company reported a pre-tax loss of USD 11.0 million for the period, a sharp improvement on the USD 186.9 million deficit posted a year earlier — though that earlier figure was inflated by a USD 154 million impairment charge. With earnings under pressure, the board opted to suspend the interim distribution in full.

Output Slashed by Attacks on Power Grid

The revenue slump traces back to a sweeping reduction in operations. Following targeted strikes on Ukraine's electricity infrastructure, Ferrexpo was forced to halt production entirely at the start of the year.

Commercial output tumbled 54 percent year-on-year to just under 1.6 million tonnes, while sales volumes fell 62 percent to 1.455 million tonnes. Only one of the company's four pelletising lines is currently running, and even that at reduced capacity.

Disputes with Ukrainian authorities are adding further strain to the operating business, with parts of the company's claims formally rejected. To free up liquidity during the production stoppages, Ferrexpo sold assets including the bulk carrier Iron Destiny for USD 7.7 million. An 8 percent rise in the average realised iron ore price to USD 121.3 per tonne was not enough to offset the drop in volumes.

Emergency Raise Stretches Runway to 18 Months

A worsening cash position was averted only after shareholders approved an emergency capital increase of USD 100 million, comprising roughly USD 60 million through a placing and USD 40 million subscribed by the company's largest shareholder.

Management says the funding will cover about 18 months at the current curtailed level of production. A meaningful recovery in output remains tied to a reliable energy supply, open logistics corridors and progress in the tax dispute.

BlackRock Reaches Reporting Threshold

Against that backdrop, BlackRock has raised its stake in the commodities group. A regulatory filing shows the world's largest asset manager has hit the 5.00 percent voting rights threshold, made up of a direct shareholding of 1.34 percent plus a further 3.66 percent held through financial instruments and contracts for difference.

The move comes amid a sweeping reshuffle of Ferrexpo's shareholder base. After severe disruption caused by the war in Ukraine and trading suspensions, the stock is once again trading in Germany, though it closed at EUR 0.3340 on Thursday. Year-to-date losses amount to 63 percent.

Share Count Swells After Rescue Issue

The equity raise involved the issuance of 448.8 million new shares at 16.5 pence each, lifting the total issued share capital to 1,062,816,440 ordinary shares. Ukrainian businessman Andriy Verevskyi, according to Bloomberg, secured a package of 224.4 million new shares through a USD 50 million commitment. In addition, an unsecured USD 15 million credit facility with major shareholder Fevamotinico was retired by offsetting it against subscription amounts from the capital increase.

Those fresh funds are critical to keeping the business running. Ferrexpo restarted production on one pellet line about two weeks ago once the new money was secured, having previously been forced into significant cutbacks by threats to Black Sea export routes and the need to preserve working capital.

The participation of institutional heavyweights such as BlackRock signals that the iron ore producer still commands market attention despite extreme operational risks. For traders, the situation remains demanding, with the company's future hinging largely on transport corridors and the stability of its Ukrainian production sites.

Investors welcomed the release of the figures, sending the stock up 12 percent on the day to EUR 0.3784.