Ferrexpo plc (LSE:FXPO) has entered into an agreement to sell its owned transhipping vessel Iron Destiny for a total net cash consideration of US$7.7 million, a move the board says will provide immediate liquidity and cut ongoing maintenance and future capital expenditure on an underutilised asset.
The vessel has not been operable as a transhipper since the commencement of the war, the company said, but the group continued to incur monthly maintenance and sustaining capex to keep Iron Destiny seaworthy. With the vessel nearing the end of its useful life, the board concluded a sale was in the group’s best interests; completion is expected later this month, subject to delivery and customary closing conditions.
"The group currently estimates that it has extended the runway of having sufficient net accessible cash from at least the end of June 2026 to until approximately the end of August 2026," the company added. That estimate is subject to iron ore price swings, operating and energy costs, potential restrictive measures by the insolvency manager at Ferrexpo (LSE:FXPO) Poltava Mining and the outcomes of ongoing proceedings.
Ferrexpo reiterated it is actively exploring a number of potential funding options, including an equity capital raise announced earlier in April.
