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Ferrexpo Faces VAT Refund Suspension Impacting Operations

Story Highlights
  • Ferrexpo’s VAT refunds for February 2025 have been suspended by Ukrainian authorities.
  • The suspension is affecting Ferrexpo’s liquidity, leading to reduced production and cost-cutting.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Ferrexpo Faces VAT Refund Suspension Impacting Operations

Ferrexpo ( (GB:FXPO) ) has issued an announcement.

Ferrexpo has announced that the Ukrainian tax authorities have suspended VAT refunds for its subsidiaries, Ferrexpo Poltava Mining and Ferrexpo Yeristovo Mining, for February 2025, amounting to approximately US$ 11.1 million. This suspension, linked to personal sanctions on Kostiantyn Zhevago, is impacting the company’s liquidity, forcing production cuts to 25% capacity and necessitating significant cost-cutting measures. Ferrexpo is actively engaging with authorities to resolve the issue, which is placing financial pressure on its operations.

Spark’s Take on GB:FXPO Stock

According to Spark, TipRanks’ AI Analyst, GB:FXPO is a Neutral.

Ferrexpo is facing considerable challenges, with substantial financial strain due to declining revenues and profitability. Technical indicators show a strong downtrend, and valuation metrics are unfavorable, highlighting ongoing financial distress. Negative corporate events add further pressure, emphasizing geopolitical and operational risks. Overall, caution is advised for investors due to the multiple adverse factors affecting the company’s outlook.

To see Spark’s full report on GB:FXPO stock, click here.

More about Ferrexpo

Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine, listed on the London Stock Exchange and part of the FTSE 250 and FTSE4Good indices. The company produces high-grade iron ore pellets, a premium product for the global steel industry, which helps reduce carbon emissions and increase productivity. Ferrexpo has been a key supplier to the global steel industry for over 50 years and was the world’s third-largest exporter of pellets before the Russian invasion of Ukraine.

YTD Price Performance: -51.23%

Average Trading Volume: 3,393,815

Technical Sentiment Signal: Strong Buy

Current Market Cap: £302.8M

For a thorough assessment of FXPO stock, go to TipRanks’ Stock Analysis page.

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