Ferrexpo plc (LON:FXPO), a premium iron ore pellet supplier to the global steel industry, has announced that a Ukrainian court of appeal has confirmed a claim against Ferrexpo Poltava Mining (“FPM”) in the amount of UAH4,727 million (approximately US$125 million). FPM will file an appeal to the Supreme Court in Ukraine.
As previously disclosed in the 2022 Annual Report and Accounts and 2023 Interim Results, FPM received on 7 December 2022 a claim in the amount of UAH4,727 million in respect of contested sureties. The claimant asserts that it acquired rights under certain loan agreements. The claimant further alleges that FPM provided sureties to ensure the performance of these obligations.
On 9 August 2023, a court of first instance issued judgment in favour of the claimant. FPM filed an appeal, nevertheless the court of appeal has confirmed the claim. The Group remains of the view that FPM has compelling arguments to defend the position in the Supreme Court.
Ferrexpo’s operations remain unaffected. A further announcement will be made as appropriate.
Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine and a premium listing on the London Stock Exchange in 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.
