(Reuters) – Ukraine-focused miner Ferrexpo, on Wednesday, reported a surprise loss due to an impairment charge and said it issued a formal notice to Ukraine over efforts to nationalise the Poltava mining and processing plant, the company’s largest mine.
The company’s shares slid as much as 14.8%. They have fallen about 67% since the start of the Russia-Ukraine war in February 2022.
The firm reported a $50 million loss for 2024 due to a $72 million impairment charge caused by a reduction in the carrying value of its assets and lower cash flow.
Ferrexpo estimated a profit of $22 million excluding the charge. Brokerage Peel Hunt too had expected the company to post a net profit.
It also signalled that its operating conditions continue to be challenging as the Russia-Ukraine war stretches to its fourth year, with no improvements in iron ore prices or costs.
Ferrexpo confirmed it has sent a formal notice to Ukraine over attempts to transfer the company’s 49.5% corporate rights in the Poltava unit to federal agencies amid investigations into alleged misappropriation of funds related to illegal mining.
It said it has still not received any official documentation or requests from the Ukrainian authorities.
(Reporting by Pushkala Aripaka and Yamini Kalia in Bengaluru; Editing by Savio D’Souza)
