Ferrexpo Resumes Production in Ukraine After Securing $100 Million

The mining company Ferrexpo has resumed production at its facilities in Ukraine after securing $100 million in new capital. Currently, operations have restarted on one line for producing pellets. The company organized the necessary activities for the restart over the weekend following the announcement of the fundraising on September 4. Ferrexpo plans to focus its product deliveries on customers in Europe due to regular attacks on Ukrainian ports. In early August, the company suspended production, citing the threat of Russian attacks and the need to conserve working capital. As of June 30, Ferrexpo's net cash position was approximately $21 million. The company's main assets include the Poltava, Eristovskyi, and Bilannivskiy mining and processing plants. On September 4, Ferrexpo announced an emergency recapitalization, with half of the amount invested by Kernel owner Andriy Verevskyi. As part of the placement, Ferrexpo is issuing 448.8 million new shares at a price of 16.5 pence per share. The completion of the deal requires shareholder approval at a meeting on September 21, and trading of the new securities is planned to begin on September 22. The new financing could provide the company with approximately 18 months of operation; however, it does not resolve the issue of VAT reimbursement on exports, with debts owed to Ferrexpo estimated at $100 million.