Swiss-headquartered miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced its financial results for the first half of the current year.
In the given period, Ferrexpo recorded a net loss of $14.9 million, compared to a net loss of $196 million in the first half of the previous year. The sales revenues of the company totaled $196 million in the first half, down by 57.0 percent year on year, due to lower sales volumes. The company's sales volumes decreased by 1.1 percent to 3.81 million mt, while its EBITDA loss amounted to $4 million, compared to positive $4 million, reflecting the net effects of lower sales volumes and realized prices and higher production costs.
Ferrexpo's total commercial production amounted to 1.56 million mt in the first half, down 54 percent year on year and 40 percent compared to the second half of 2025. The company was forced to scale down operations to one of its four pelletizing lines due to electricity supply constraints and reduced financial liquidity resulting from the continued suspension of VAT refunds by the Ukrainian authorities.
Suspended VAT refunds continue to constrain liquidity
Ferrexpo said the continued withholding of VAT refunds remains a significant financial issue. As of June 30, its net VAT receivable balance in Ukraine stood at $82.7 million. At the time the interim results were approved, VAT refunds totaling UAH 3.89 billion, equivalent to $86.9 million, had been suspended by Ukraine's State Tax Service.
