Ferrexpo Halts Production After Grid Attacks

Ferrexpo (LON: FXPO) has stopped production after further attacks on Ukraine’s power grid left its operations without stable electricity. The iron ore pellet producer, which runs mines and a processing plant near Kremenchuk, told the market at 7 am today, before the London open, that the halt is temporary.

The shares were down 4.66% at 30.28p at 8.36 am, against 31.76p at yesterday’s close, in early trading on a delayed quote. They have ranged from 28.62p to 30.70p today, having held roughly 30p to 33p since late September.

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The statement gave the cause first and the decision second.

there have been further attacks on Ukrainian electricity infrastructure, including transmission lines and substations. As a result, the supply of electricity to the Group’s operations is currently unstable and insufficient to sustain production, and therefore it has been decided to temporarily stop production.

Ferrexpo plc

Transmission lines and substations make up the high-voltage grid that carries power to factories. Ferrexpo said its assets are undamaged and that it can supply European customers from inventory stockpiles, meaning pellets already made and held in stock.

There is no timetable. The group said it intends to resume production once operational conditions allow it to do so commercially, and will provide an update as appropriate.

That leaves the balance sheet in focus. Ferrexpo made a pre-tax loss of $11m in the first half of 2026, against $186.9m a year earlier, and held about $30m of cash at the end of June, down from $58m at the end of 2025.

The stoppage follows an earlier limited restart. At the half-year results on the 25th of September, interim executive chairman Lucio Genovese said improvements in electricity availability and price had let the company bring one of its four pellet lines back online.

With about $30m of cash at the end of June, how long power stays too unstable to run the plant matters more than the opening drop. The company says it will resume only once that is commercially viable.