Swiss-headquartered miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced that it has entered into an agreement for the sale of its transshipping vessel Iron Destiny for a net cash consideration of $7.7 million, while continuing to explore funding options to support its near-term liquidity position.
The company stated that the vessel sale is expected to be completed later this month, subject to customary closing conditions.
Since the outbreak of the war, Ferrexpo has been unable to fully utilize the Iron Destiny as a transshipping unit, while continuing to incur ongoing maintenance and capital expenditure to keep the vessel operational.
Given the limited utilization, rising costs and the vessel nearing the end of its useful life, the company decided to proceed with the sale to secure immediate cash inflow and reduce future expenses.
Cash runway extended to August 2026
Following the expected proceeds from the transaction, the company estimates it has extended its net accessible cash runway from the end of June 2026 to approximately the end of August 2026.
This estimate remains subject to factors including iron ore price volatility, energy costs and operating conditions, as well as potential regulatory or legal developments affecting the group
Equity fundraising seen as most viable option
Ferrexpo confirmed it is actively evaluating funding alternatives and currently considers an equity capital raise as the most viable solution in the required timeframe.
The potential fundraising would involve a conditional placement of new shares to existing and new institutional investors, targeting a minimum of $100 million to support working capital and short-term operations over the next 18 months.
