Ferrexpo said it was forced to temporarily suspend operations due to attacks on Ukraine’s energy infrastructure by Russia, with total production falling 45% quarter-on-quarter to 593,000 tons. Of this, 525,000 tons were high-grade iron ore pellets and 68,000 tons were commercial concentrate.
Concentrate production dropped by up to 90% quarter-on-quarter, while pellet output increased by 27% after one production line was gradually restarted at the end of February.
Company acting CEO Lucio Genovese said the weak production figures reflected the intensity of attacks on the power grid in late last year. He noted that due to unstable electricity supply, operations were suspended in January and employees were placed on unpaid leave.
Following improvements in electricity supply and pricing, Ferrexpo restarted a single pellet line at its Poltava Mining unit at the end of February. However, production is still operating at limited capacity.
The company continues to use rail transport to ship products to customers in Eastern and Central Europe.
Ferrexpo also highlighted significant financial pressure, stating it is focusing on cash preservation and cost-cutting measures. Working hours have been reduced and non-essential investments suspended. The company added that it is evaluating financing options, including a potential capital increase, but there is no certainty these efforts will succeed.
Comments
No comment yet.