Ferrexpo (FXPO) Status Update summary

Operational performance

• Achieved an 83% increase in total commercial production in 1H 2024 versus 2H 2023, and a 75% increase year-on-year, marking the best performance since early 2022.

• Production of DR pellets resumed, with improved physical strength and chemical quality due to the nearly completed press filtration complex.

• Rapid restart of previously idled capacity and shorter rail times to ports improved the cash conversion cycle.

• 2Q 2024 saw a 19% decrease in total commercial production compared to 1Q 2024, but 1H 2024 production was up 83% over 2H 2023.

• Access to the Black Sea maritime corridor enabled continued shipments from Ukrainian ports, with over 800 ships passing through since late 2023.

Financial and market conditions

• Benefited from higher iron ore prices in 1Q 2024, but these did not persist into 2Q 2024, leading to reduced margins.

• Maintained cash position despite increased investment in sustaining and efficiency capital expenditure.

• Freight rates and insurance premiums remain high for shipments via Ukraine and the Red Sea.

Cost and risk management

• Electricity prices rose sharply due to attacks on Ukraine's energy infrastructure, but alternative power sourcing minimized production disruption.

• Ongoing war in Ukraine continues to pose significant operational and human resource challenges.

• Workforce support programs are in place for employees serving in the Armed Forces and returning veterans.