Ferrexpo

Ferrexpo plc is a Swiss-based commodity trading and mining company which has its iron-ore mining capabilities in Ukraine. The company's trading office is located in London where it is listed on the London Stock Exchange and it is a constituent of the FTSE 250 Index.

Ferrexpo plc
Public
Traded asLSEFXPO
Industryiron ore Mining
Founded1960
HeadquartersBaar, Switzerland
Horishni Plavni, Ukraine
Key people
Michael Abrahams, Chairman
Kostyantin Zhevago, CEO Christopher Mawe CFO
Productsiron ore pellets
Revenue$1,506.7 million (2019)[1]
$501.3 million (2019)[1]
$403.3 million (2019)[1]
SubsidiariesPoltava Mining and Enrichment Combinat, Yeristovo Mining and Enrichment Combinat
Websitewww.ferrexpo.com

HistoryEdit

The business was founded by the Soviet government in 1960 as the "Poltava Mining and Extraction Combinat" to exploit iron ore reserves in Horishni Plavni (formerly Komsomolsk), Ukraine.[2] In 1977 it started selling its product in the form of pellets. It was first listed on the London Stock Exchange in 2007.[2] In 2008 and 2009 the company established additional new complexes around Horishni Plavni and Kremenchuk. In 2011 the company announced that it was considering expansion in countries outside Ukraine.[3] Ferrexpo acquired an $80 million stake (14.4%) in a Brazilian mining company Ferrous Resources in September 2013 as part of its push to expand beyond Eastern Europe.[4]

In March 2019 the company delayed publication of its results pending an investigation into charitable donations in Ukraine.[5] In April 2019 its auditors Delloite resigned, with Ferrexpo's chief financial officer selling £400,000 of shares the day before the announcement.[6] In August 2019 Ferrexpo announced that the charitable donations may have been misappropriated; it had donated $24 million to the charity in 2017 and $9.5 million in 2018.[7]

OperationsEdit

The Company, which sells most of its product to steel mills of Eastern Europe, is organised into the following units:[8]

The company's mining components are all based in central Ukraine and consist of:

  • Poltava Mining and Enrichment Complex (1970s), Horishni Plavni
  • Yeristovo Mining and Enrichment Complex (2008-2012), Yerystivka village, Kremenchuk Raion
  • Belanovo Mining and Enrichment Complex (est. 2009, under construction), Bazaluky village, Horishni Plavni municipality and Nova Haleshchyna, Kozelshchyna Raion

OwnershipEdit

The founder, Kostyantyn Zhevago, owns 51% of the company.[9]

ReferencesEdit

  1. ^ a b c "Preliminary Results 2019" (PDF). Ferrexpo. Retrieved 18 March 2020.
  2. ^ a b "Ferrexpo appoints new CFO". Director of Finance on line. 3 December 2007. Retrieved 3 December 2016.
  3. ^ "Ferrexpo considers expanding out of Ukraine". Financial Times. 4 August 2011. Retrieved 3 December 2016.
  4. ^ "Ferrexpo acquires $80 million stake in Brazilian miner". Financial Times. 18 September 2013. Retrieved 3 December 2016.
  5. ^ "Ferrexpo delays full-year results amid Ukraine charity probe". FT. 19 March 2019. Retrieved 20 March 2019.
  6. ^ Jolly, Jasper (29 April 2019). "Ferrexpo finance chief sold £400,000 stake on eve of share slump". The Guardian. Retrieved 30 August 2019.
  7. ^ Jolly, Jasper (30 August 2019). "Ferrexpo says funds to Ukrainian charity may have been misappropriated". The Guardian. Retrieved 30 August 2019.
  8. ^ "Ferrexpo has attractions despite founder's big slice". The Times. 21 March 2008. Retrieved 3 December 2016.
  9. ^ "Ferrexpo must show its mettle to woo investors". The Times. 10 June 2007. Retrieved 3 December 2016.

External linksEdit