Ferrexpo Shares Jump as Ukraine Pellet Output Resumes

Ferrexpo (LON: FXPO), the London-listed iron ore pellet producer, saw its shares jump sharply earlier today after confirming that production had restarted at its Ukrainian operations, halted since the war began.

The stock traded at 35p by early afternoon, up 22.46% from Friday’s close of 28.58p, according to the London Stock Exchange’s delayed feed. That puts the shares well above the 52-week low of 27.2p they had been trading near just before the announcement, though still far below the 52-week high of 87.1p. Proactive Investors separately reported an early intraday peak of 36.88p, up 29% from the same Friday close.

Ferrexpo said in a stock exchange announcement earlier today that its workforce had mobilised operations over the weekend, bringing one pellet line back online. The restart follows a $100m fundraising announced on Thursday, which gave the company the cash needed to remobilise. Given continuing attacks on ports and vessels in the Black Sea, Ferrexpo said it intends to focus its pellet exports on customers in Europe.

The restart matters because it is the first tangible proof that Ferrexpo’s Ukrainian business, its core revenue engine, can produce and ship pellets again since the war halted operations. With only one pellet line running, output remains a fraction of what the business could produce before the war, and the company’s exposure to a single, war-affected production site and route to European customers keeps the business highly sensitive to any renewed disruption.

“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.

Further newsflow on export volumes and Black Sea shipping conditions is likely to remain the key driver of the stock from here.