Ferrexpo (LSE:FXPO), the London-listed producer and exporter of premium iron ore products to the global steel industry, reported revenue of $196 million for the six months to 30 June, down 57% from $453 million in the first half of 2025.
The Ukraine-focused miner swung to an underlying EBITDA loss of $4 million, against positive EBITDA of $4 million a year earlier, and posted a loss after tax of $14.9 million, narrower than the $196 million loss in the same period last year which had included a $154 million impairment.
Attacks on Ukraine's electricity infrastructure forced a temporary suspension of operations in January, and the group restarted only one of its four pellet lines in February.
Total commercial production fell 54% year-on-year to 1.6 million tonnes, while sales volumes dropped 62% to 1.5 million tonnes.
C1 cash costs rose to $81.3 per tonne from $77.1, reflecting higher electricity, fuel and personnel costs.
The suspension of VAT refunds by Ukraine's tax authorities remained the dominant financial constraint, with the gross VAT receivable balance climbing to $102.2 million by period end.
"The absence of these refunds materially constrained the cash available to the business during the period and was a significant factor in the decision to continue operating at reduced levels," said Nikolay Kladiev, chief financial officer.
The group ended the period with $30 million in cash and net cash of $21 million, down from $47 million at the end of December.
Post period-end, Ferrexpo completed a $100 million equity raise in September, approved by shareholders at a subsequent general meeting, which Interim Executive Chair Lucio Genovese said had "materially strengthened the Group's liquidity position".
A separate shareholder meeting to address outstanding AGM resolutions, including auditor reappointment, is scheduled for 9 October.
News Intelligence what this means for the company
Ferrexpo's H1 2026 results confirm the scale of Ukraine's war impact: revenue collapsed 57% to $196 million, output halved to 1.6 million tonnes, and the company swung to a $4 million EBITDA loss as electricity attacks and suspended VAT refunds ($102.2 million gross balance) crippled operations to a single pellet line. The $100 million equity raise completed post-period in September has addressed the acute cash crisis that threatened to exhaust the $30 million closing balance by mid-Q4, but the company remains operationally constrained and dependent on Ukraine's VAT refund system and energy stability.
The raise has bought time, but Ferrexpo's investment case now hinges entirely on two external factors beyond management control: restoration of Ukraine's electricity grid and resumption of VAT refunds. Until both occur, the company cannot return to meaningful production or cash generation—the $81.3/tonne cash cost floor and single-line capacity mean even modest output remains unprofitable at current realized prices.
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