Swiss-headquartered iron ore pellet producer Ferrexpo said a vessel carrying its premium product was struck by drones while sailing in Ukrainian waters of the Black Sea, and that it is seeking at least $100 million in financing, although it has sufficient net accessible cash to operate until the end of August, according to a July 28 statement.
Ferrexpo said the vessel carrying 55,000 metric tons of its direct-reduction-grade pellets remained afloat, although its structural integrity is unknown.
The London-listed company currently has about 189,000 mt of pellets designated for shipment, including 90,000 mt of DR-grade material in stockpiles, representing about $20 million in production and delivery costs, according to the statement.
“As a result of ongoing drone and missile attacks in and around the port, as well as on loaded vessels departing Ukrainian ports, the group does not expect to be able to load additional vessels via this export route for the foreseeable future, given [that] shipowners have provided advance notice of cancellation of their vessel fixtures,” Ferrexpo said.
When contacted by Platts, part of S&P Global Energy, on July 28, Ferrexpo said that it had not disclosed the timing of the incident for security reasons.
The company had planned to increase DR-grade pellet sales via Black Sea ports in the second half of 2026 as part of its strategy to optimize its product mix toward higher-quality material, according to the statement.
Ferrexpo said its board is evaluating operational and financial scenarios to mitigate the impacts, while working with advisers to launch an equity capital raise of at least $100 million.
The company’s liquidity forecast remains subject to volatility in iron ore pricing, operating expenses, including energy costs, and other factors, according to the statement.
Ferrexpo said it has notified insurers and is working to advance claims related to the incident.
Author: Annalisa Villa
