Latest news with #Ferrexpo
Daily Mail
6 days ago
- Business
- Daily Mail
Miner Ferrexpo sees iron ore output plummet after Ukraine suspends VAT refunds
Ferrexpo has reported a massive slump in iron ore production following the Ukrainian Government's decision to suspend tax refunds for the firm. The mining company delivered 1.3 million tonnes of iron ore during the quarter ending March, compared to 2.1 million in the previous quarter, which was the highest amount since Russia's full-scale invasion of Ukraine in February 2022. Meanwhile, the Swiss-headquartered group's pellet output plunged by 39 per cent from more than 1.3 million tonnes to 821,882 tonnes. Ferrexpo has been forced to downsize its operations to one pelletising line and to reduce the production of high-grade concentrate due to the halting of VAT refunds and their negative impact on liquidity levels. The suspension follows sanctions imposed by President Volodomyr Zelensky on the oligarch Kostiantyn Zhevago, who controls a 49.5 per cent stake in Ferrexpo and was once dubbed 'Europe's youngest self-made billionaire'. Zhevago has been accused of embezzling funds from Finance & Credit Bank, which collapsed in 2015. He has denied all allegations. Ukraine's government attempted, but failed, to seize his stake in Ferrexpo's Poltava mine through the courts in 2023. In March, the Daily Mail reported that Ferrexpo would initiate international arbitration proceedings if Ukraine part-nationalised the site, which is Ferrexpo's largest iron ore mine. 'All efforts and representations are underway with the respective authorities and government bodies in Ukraine and internationally to try to resolve the VAT refund suspension,' said Lucio Genovese, interim executive chair of Ferrexpo. Ferrexpo noted on Monday that demand for its high-grade low-alumina concentrate from customers in China continued to be strong. The group's annual production volumes remain far below pre-2022 volumes due to the conflict in Ukraine disrupting export operations and many employees serving in the country's armed forces. Mark Crouch, market analyst for eToro, said: 'Ferrexpo has long been navigating treacherous terrain, but the war in Ukraine has brought unprecedented disruption.' However, he added: 'It's worth remembering that Ferrexpo has weathered severe downturns before. 'The company's shares have traded at significantly lower levels during prior crises, such as the 2008 financial meltdown and the 2015 commodities rout. 'For long-term investors with a high-risk appetite, this may be seen not as a crisis, but as yet another turbulent chapter in Ferrexpo's volatile history.' Ferrexpo shares were 0.7 per cent higher at 49.1p on late Monday afternoon, taking their losses to around 55 per cent since the year began.
Reuters
6 days ago
- Business
- Reuters
UK equities mixed as investors assess tariff-related updates, company news
July 7 (Reuters) - London's main stock indexes were mixed on Monday as investors focused on corporate updates and a three-week delay in higher U.S. tariff rates, alongside progress on trade agreements. The blue-chip FTSE 100 (.FTSE), opens new tab was flat by 0910 GMT, while the domestically oriented midcap index (.FTMC), opens new tab rose 0.2% after ending the previous week in the red. U.S. President Donald Trump said on Sunday that Washington was close to several trade agreements and would notify other countries of higher tariff rates set to go into place on August 1, a delay from the July 9 deadline. Oil and gas (.FTNMX601010), opens new tab stocks weighed on the index, dropping 2.6%, with energy giant Shell (SHEL.L), opens new tab losing almost 3% after trimming its second-quarter outlook for integrated gas division and liquefied natural gas production ahead of full results. Other oil companies also came under pressure with oil prices slipping after OPEC+ hiked output above expectations in August. BP (BP.L), opens new tab was down 1.9%. Diversified Energy , Harbour Energy (HBR.L), opens new tab and Ithaca Energy (ITH.L), opens new tab all fell over 1% on the midcap. Among individual stocks, miner Ferrexpo (FXPO.L), opens new tab slid 1.7% as iron ore production fell after the discontinuation of Ukraine's value-added tax refunds reduced operations. Electricals retailer Currys (CURY.L), opens new tab fell 6.2% and led midcap losses, after an RBC downgrade. Online trading platform Plus500 (PLUSP.L), opens new tab was among the top gainers on the FTSE 250 after positive second-quarter results. Weir Group (WEIR.L), opens new tab was the top gainer on the blue-chip after Citigroup raised its rating and price target. On the data front, Halifax data showed that British house prices stagnated in June from the previous month following the increase in tax on property transactions from April. In other news, British finance minister Rachel Reeves is set to announce a 28.6 million pound ($39 million) investment into a carbon capture project, which is expected to create jobs in central and northern England. ($1 = 0.7325 pounds)
Bloomberg
6 days ago
- Business
- Bloomberg
FTSE 100 Live: UK Stocks Dip, Pound Slips Closer to $1.36
Here's a roundup of other companies reporting earnings today: Plus500: The online trading platform saw a slight dip in new customers during the first half, but its board remains confident in the outlook for 2025. Ferrexpo: The Ukraine-based iron ore miner said it has cut working time for employees in order to lower its costs to remain financially viable. Primary Health: The health care property investor reported a rise in net rental income for the first half, and said it sees a 'very encouraging outlook' ahead.
Reuters
17-04-2025
- Business
- Reuters
Ferrexpo hit with fresh suspension of VAT refunds in Ukraine
April 17 (Reuters) - Ukraine-focused miner Ferrexpo (FXPO.L), opens new tab said on Thursday that Ukrainian tax authorities have decided to suspend the refund of value-added tax worth 456.6 million hryvnias ($11.03 million) for February to two of its Ukrainian units. This follows a similar suspension of its January VAT refunds in March when 512.9 million hryvnias were withheld. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Ferrexpo previously said the VAT refund suspension was related to the imposition of personal sanctions on Ukrainian billionaire Kostiantyn Zhevago, who is the largest shareholder of the London-listed company. "Personal sanctions on Zhevago should not be used as an instrument to place financial pressure on Ferrexpo," the miner said. Zhevago is facing allegations that he embezzled money from the now-bankrupt lender Finance & Credit Bank, in which he had a 95% indirect shareholding before its 2015 collapse. Ferrexpo said it has undertaken significant cost-cutting measures to preserve liquidity, impacting its workforce, mining, and processing operations, among other areas. ($1 = 41.3900 hryvnias)
Reuters
07-04-2025
- Business
- Reuters
UK's FTSE 100 dives to lowest in near 14 months amid tariff turmoil
Summary Companies FTSE 100 down 3.8%, FTSE 250 falls 4.1% BoE rate cuts expected as economic uncertainty grows Shell lowers LNG production outlook due to Australian weather Ferrexpo's production drops after Ukraine VAT refund suspension April 7 (Reuters) - Britain's FTSE 100 plunged to its lowest level in nearly 14 months on Monday as recession fears intensified following U.S. President Trump's firm stance on implementing his sweeping tariff plans, riling global markets. As of 1012 GMT, the blue-chip FTSE 100 (.FTSE), opens new tab index dropped 3.8% to its lowest level since February 2024. here. The domestically-focused midcap index (.FTMC), opens new tab slid 4.1%, hitting its lowest point since November 2023. Over the weekend Trump told reporters that investors would have to take their medicine and he would not do a deal with China until the U.S. trade deficit was sorted out. Beijing declared the markets had spoken on their retaliation plans. As economic uncertainty deepened, investors increased bets on the Bank of England cutting interest rates, pushing short-dated gilt yields sharply lower on Monday. Interest rate futures now suggest about 88 basis points of reductions to the BoE's benchmark rate by December—pricing in more than three quarter-point cuts—compared with around 72 basis points on Friday. Across the pond, the U.S. futures markets moved swiftly to price in almost five quarter-point interest rate cuts this year despite Federal Reserve Chair Jerome Powell indicating on Friday that the U.S. central bank officials "don't need to be in a hurry" until economic direction becomes clearer. All major sectors traded in the red, with UK energy companies (.FTNMX601010), opens new tab particularly hard hit, falling 7.8% as oil prices dropped nearly 4% amid recession fears and OPEC+'s planned supply increase. Shell (SHEL.L), opens new tab emerged as one of the worst performers on the FTSE 100, losing 8.4% after lowering its first-quarter LNG production outlook due to adverse weather conditions in Australia. Ukraine-focused miner Ferrexpo (FXPO.L), opens new tab dropped 4.8% after reporting a 26% decline in first-quarter pellet production following Ukraine's suspension of VAT refunds, which forced operational cutbacks. Separately, British house prices unexpectedly fell in March, according to data from mortgage lender Halifax, the latest sign of a market cooling after a rush to buy homes ahead of a tax break expiration.
