Ferrexpo (LSE:FXPO) announced it has restarted production at its Ukrainian operations, mobilising the site over the weekend to bring one pellet line back online.
The restart follows a $100 million fundraising that the London-listed producer and exporter of premium iron ore products announced on 4 September.
Given attacks currently underway on ports and vessels in the Black Sea, Ferrexpo said it intends to focus its exports on customers in Europe.
"We are pleased to restart production in Ukraine and I would like to thank our workforce, who have once again demonstrated their commitment and determination in being able to bring the operation back online over the weekend," said Lucio Genovese, Ferrexpo's interim executive chair.
Ferrexpo shares soared 36.5% to 39p.
News Intelligence what this means for the company
Ferrexpo has restarted one pellet production line in Ukraine days after closing a $100 million fundraise, addressing an acute cash crisis: the company expected net accessible cash to last only until mid-September without additional funding. With Black Sea ports under attack, the company is pivoting exports to Europe rather than its traditional routes, a logistical constraint that the fundraise now allows it to navigate.
The restart signals operational resilience and validates the fundraise timing, but production remains at one line—a fraction of capacity—and export routing to Europe (likely at lower margins or higher transport cost than Asian sales) reflects ongoing war-driven constraints rather than a return to normal. The $100 million raise, equal to the company's reported net VAT receivable of $90.4 million as at 30 June, has bought runway but not solved the underlying geographic risk.
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