11 March 2024
Ferrexpo
plc
("Ferrexpo" or the "Group")
Update
regarding Ukrainian subsidiary
Ferrexpo plc (LSE: FXPO), notes the
press speculation concerning an application from LLC PCC "Kysen"
("Kysen"), a supplier and related party to Ferrexpo Poltava Mining
("FPM"), relating to the potential opening of creditor protection proceedings against FPM,
which was accepted by the Commercial Court in Poltava Oblast. The
amount of debt claimed by Kysen under the supply agreement is
UAH2.2 million (approximately US$58,000). The Company has been
informed that the court has scheduled a preparatory court hearing
to decide whether to commence creditor protection
proceedings of FPM on 12 March
2024.
Having become aware of proceedings
the Board of Ferrexpo has taken steps to settle the debt. Given
restrictions with the operation of FPM's bank accounts in Ukraine,
and the nature of the payment that is being made to settle the
debt, FPM is not able to provide assurance now that funds will be
received in a timely manner and for that reason FPM is, in
parallel, also seeking to agree an extension of payment
terms.
FPM has received notification in
Ukraine of a court order issued at the request of the prosecutor in
Ukraine to freeze the bank accounts belonging to FPM. This action
is linked to the ongoing investigation in Ukraine commenced in
November 2022 by the National Police of Ukraine concerning the
alleged illegal extraction of minerals ("rubble"), details of which
were disclosed in the Group's 2023 Interim Results and 2022 Annual
Report.
Ferrexpo is working closely with its
legal counsel and other advisers to consider and address the
situation. The Company will make further announcements as
appropriate. Ferrexpo's operations remain unaffected at this
time.
This announcement contains inside
information. The person responsible for the release of this
announcement is Mark Gregory, Group Company Secretary.
For further information please
contact:
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Ferrexpo:
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Nick Bias
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n.bias@ferrexpo.ch
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+44 (0)20 7389 8305
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+44 (0)7733 177 831
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Tavistock:
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Jos Simson
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ferrexpo@tavistock.co.uk
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+44 (0)20 7920 3150
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Gareth Tredway
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+44 (0)7785 974 264
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About Ferrexpo:
Ferrexpo is a Swiss headquartered
iron ore company, with assets in Ukraine, and a premium listing on
the London Stock Exchange, and part of the FTSE 250 index (ticker
FXPO). The Group produces high-grade iron ore pellets, which are a
premium product for the global steel industry and enable reduced
carbon emissions and increased productivity for steelmakers when
the Group's iron ore pellets are converted into steel, compared to
more commonly traded forms of iron ore. Ferrexpo's operations have
been supplying the global steel industry for over 50 years. Before
Russia's invasion of Ukraine in February 2022, the Group was the
world's third largest exporter of pellets to the global steel
industry. The Group has a customer base comprising of premium steel
mills around the world. For further information, please
visit www.ferrexpo.com.
