Shares in Ukrainian iron ore producer Ferrexpo (FXPO) have fallen 82% from their July 2021 peak and green shoots in its
half-year results on 2 August weren’t enough to stop the decline in its valuation.The miner’s shares were already falling before Russia’s invasion of Ukraine, but life has certainly got worse for the company since the war began.

Production has been hit, overheads have gone up and there have been challenges transporting its products as Ferrexpo’s principal loading port, the Port of Pivdennyi, remains disrupted as the conflict affects trade routes in the Black Sea, with alternative sources weighing on costs.

However, when comparing the first-half 2023 period to the previous six months, production and average selling prices have gone up.

‘Despite profits being lower and capex higher than we had expected, Ferrexpo remains in remarkably good financial shape,’ argues Liberum analyst Ben Davis. ‘The net cash position improved to $131 million, providing a comfortable buffer against any production/sales disruptions or higher energy prices.’

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