Ferrexpo (LSE:FXPO), the London-listed producer and exporter of premium iron ore products, said it now expects its cash reserves to last only until early in the fourth quarter, as a prolonged suspension of Ukrainian VAT refunds and constrained operations squeeze working capital.
The miner produced 963,000 tonnes of iron ore in the second quarter to the end of June, comprising 860,000 tonnes of premium pellets and 103,000 tonnes of Fe 67% concentrate, with only one pellet line currently operating amid war-related disruption.
Net cash less lease obligations stood at approximately $21 million as at 30 June, down from $25 million at the end of March, $47 million at the end of December, and $101 million at the end of 2024, a steady decline tracking the VAT refund freeze that began in March 2025.
Ukrainian tax authorities have refused $80.8 million of refunds claimed for the period January 2025 to April 2026, leaving a net VAT receivable balance of $90.4 million as at 30 June.
"We continue to progress with the capital raise which is the most viable solution to mitigate the working capital shortfall," said Lucio Genovese, interim executive chair.
Separately, FPM's appeal against bankruptcy proceedings brought by Maxi Capital returns to court on 27 July, while the underlying Supreme Court claim, now before a 17-judge panel, has its next hearing on 12 October.
