Ferrexpo reports rise in volumes amid Ukraine legal case
reported a notable rise in production and sales volumes for the first quarter at its Ukraine subsidiary, Ferrexpo Poltava Mining (FPM), on Tuesday.
The FTSE 250 company said the increase made for the highest levels since Russia invaded Ukraine in February 2022, adding that production at its operations in the country continued without disruption in April.
It also updated the market on the legal matter concerning LLC PCC Kysen (Kysen), reporting that a preparatory hearing originally set for 29 April at the Commercial Court in Poltava Oblast had been rescheduled for 4 June.
Regarding a royalty-related investigation, Ferrexpo said in its 2023 full-year financial results that a notice of suspicion was issued to a senior manager of FPM, Viktor Lotous, on 31 October 2023, pertaining to the potential underpayment of iron ore royalties.
On 13 November, a court approved bail for Lotous amounting to UAH 800m (£16.25m).
An appeal led to the Kyiv Court of Appeal approving a reduced bail of UAH 650m on 29 April, without providing a rationale for the adjustment.
Ferrexpo said its board, after careful consideration of the group's financial position, opted to make a partial payment of UAH 50m towards the bail in alignment with Ukrainian law, which does not mandate payment of the full bail amount.
The company said its operations in Ukraine remained unaffected by the legal developments.
Reporting by Josh White for Sharecast.com.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.