Ferrexpo (FXPO) Status Update summary

Operational performance

• Commercial production in Q2 2025 was 1.3 million tonnes, down 40% from Q1 due to VAT refund suspension and reduced liquidity.

• Pellet production fell 39% quarter-on-quarter, with total pellet output at 821,882 tonnes.

• High-grade concentrate sales to China grew, making up 36% of the production mix in H1 2025, triple the prior year.

• Cost-cutting measures included reduced working time for 37% of employees, procurement cuts, and suspension of non-essential CapEx and CSR.

• No workplace fatalities reported for over four years; LTIFR at 0.70, above the five-year average.

Financial and market environment

• Suspension of Ukrainian VAT refunds led to $31 million in refused refunds from January to April 2025.

• Lower iron ore prices and production volumes pressured margins, compounded by higher gas and electricity costs.

• Efforts are ongoing with Ukrainian and international authorities to resolve the VAT refund issue.

Workforce and community

• 738 employees are serving in the Armed Forces of Ukraine, the highest since the 2022 invasion.

• 186 veterans have returned to communities, with 98 rejoining the workplace.

• Extensive measures continue to protect employees, families, and local communities.