Swiss-headquartered miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has provided an update on its current trading. The company has reported continued financial pressure as it manages costs and liquidity amid ongoing operational challenges, with outstanding VAT refunds reaching approximately $80 million by the end of March 2026.
Cost-cutting measures continue
The company stated that it remains focused on managing working capital and reducing costs, implementing measures such as:
- reduced working time for employees,
- cuts in procurement of goods and services,
- the suspension of non-essential capital expenditure, overheads and corporate social responsibility spending.
Ferrexpo noted that the withholding of VAT refunds continued throughout the first quarter of 2026, significantly impacting its financial position.
Liquidity sufficient until June
Based on its forecast cash burn, Ferrexpo estimates that its current resources will be sufficient until at least the end of June 2026. The company is actively exploring funding options, including a potential equity capital raise, though it stated there is no certainty these efforts will be successful.
Ferrexpo warned that continued delays in VAT refunds combined with unresolved funding issues could lead to material negative consequences for the group.
The company also announced that it requires additional time to finalize its full-year 2025 financial accounts, with results expected to be published on or before April 30, 2026.
