Ferrexpo’s Triple Threat: A Frozen Stake, a Dwindling Cash Pile, and an Auditor’s Veto Keep the Miner on the Brink
30.05.2026 - 18:45:06 | boerse-global.de
The hammer is falling on Ferrexpo from several directions at once. Ukraine’s Northern Commercial Court of Appeal has confirmed a sweeping asset freeze against majority shareholder Konstantin Zhevago, seizing a 50.3% stake in the miner’s crucial operating subsidiary, PJSC Poltava Mining, along with holdings in two other mining entities. The dispute, initiated by the country’s Deposit Guarantee Fund over the failed bank “Finanzi i Kredit,” carries a claimed value of 46 billion hryvnia — roughly $1.1 billion. The court order, which began its journey in January 2023, is now final, cutting directly into the operational heart of the London-listed iron ore producer.
That legal blow lands just as Ferrexpo confronts a liquidity squeeze so severe that it has only enough cash to last until the end of August. Net cash stood at just $17 million in mid-April, and the company has already sold the bulk carrier Iron Destiny for $7.7 million to buy a little more time. The real lifeline, however, is a planned $100 million capital increase designed to plug the working-capital gap for the next 18 months. But that injection is stalled — auditors refuse to sign off on the 2025 financial statements until the “going-concern” issue is resolved, meaning Ferrexpo cannot hold a full annual general meeting.
The result: trading in Ferrexpo shares has been suspended on the London Stock Exchange since May 1. The last recorded price was 28.58 pence, a far cry from the 52-week high of 87.10 pence. Investors are left weighing the risk of insolvency against the hope that a rescue deal can be struck with Zhevago’s investment vehicle, Fevamotinico Sarl, which controls about 49% of the equity. Negotiations over the terms and the inevitable dilution are ongoing.
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Meanwhile, the company’s June annual meeting will be a slimmed-down affair. With no audited accounts ready, the agenda is limited to routine business such as director elections and share buyback authorisations. The full report, including the re-appointment of auditors and the remuneration report, has been postponed to a separate extraordinary meeting later in the year. Even the boardroom is in flux: Vitalii Lisovenko, a nine-year veteran of the board, will not seek re-election at the June meeting.
On the ground in Ukraine, the operational picture is hardly better. A preliminary insolvency proceeding against Ferrexpo Poltava Mining was due to be heard on May 27, a case the company is actively contesting. Attacks on the energy grid continue to disrupt production, even if the situation has stabilised somewhat in recent weeks. Every day that passes without the $100 million injection — and without clarity on the frozen assets — pushes the miner closer to a point where cash and options run out together.
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