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(Sharecast News) - Ferrexpo said on Wednesday that ongoing conflict in Ukraine and constrained liquidity continued to weigh on its performance in 2025, despite strong global mining markets, according to an end-of-year letter from interim executive chair Lucio Genovese.
The London-listed, Swiss-based iron ore producer noted that the Global Mining Index rose 80% during the year, its strongest performance in more than 25 years, driven largely by record gains in gold stocks amid heightened geopolitical tensions and economic uncertainty.
By contrast, Ferrexpo said its own share price fell 30% over the year, reflecting a fourth consecutive year of war in Ukraine and renewed attacks on energy infrastructure that resulted in nationwide power restrictions.
Genovese said the company's liquidity had also been constrained by the continued withholding of VAT refunds by the Ukrainian tax authorities.
"I believe, however, that in recent years we have shown our ability to adapt and respond well to the challenges we have faced, and I believe we will continue to do so," he said.
During the year, Ferrexpo broadened its premium-grade iron ore product mix, exporting more concentrate than ever before and expanding its customer base, particularly in Asia.
Genovese said the shift to producing more than 50% premium-grade concentrates demonstrated the group's flexibility and its ability to respond to changing market opportunities.
The firm also moved to reduce costs, cutting working hours, placing some employees on furlough and scaling back spending on social and humanitarian projects after VAT refunds were withheld.
Genovese said those decisions were difficult but necessary to allow the business to remain operational, albeit at reduced capacity.
Looking ahead, Ferrexpo said it was continuing to monitor political developments in Ukraine and internationally but expected to keep operating under wartime conditions and martial law.
Genovese said the company's priority remained protecting its workforce, preserving its assets and pursuing efforts to recover the withheld VAT refunds.
At 0908 GMT, shares in Ferrexpo were down 0.61% at 75.83p.
Reporting by Josh White for Sharecast.com.
