Embattled iron pellet producer Ferrexpo has finally revealed its 2023 financial results after it delayed them while it dealt with legal action.
In a stock exchange notice today, the group revealed that due to the two ongoing cases against it, it had been forced to set aside $131m (£105m). As such, it reported a loss for the period of $85m (£68m).
Revenue for the group almost halved during 2023, dropping from $1.2bn (£960m) the year before to $652m (£532m), due to “logistics constraints and a decrease in average iron ore prices”.
Total pellet production fell 26 per cent from 2022, while sales volume dropped by 32 per cent. The average iron ore price fell from $139 a tonne in 20233 to $132 a tonne in 2023.
Meanwhile, underlying profit fell 83 per cent to $130m (£104m), while Ferrexpo’s underlying profit margin fell from 61 per cent to 20 per cent.
The primary lawsuit against the miner is against one of its subsidiaries, claiming that it is owed money by Ferrexpo Poltava Mining on behalf of a previous company run by Ferrexpo’s former chief executive and still largest shareholder, billionaire Konstantyin Zhevago.
The unnamed firm pursuing the claim are seeking debt repayment from Finance Bank and Credit, which collapsed into insolvency in 2015.
“With advice from our Ukrainian legal counsel, we believe that the various claims are without merit and that we have strong legal arguments to vigorously defend ourselves in court,” said Lucio Genovese, executive chair of Ferrexpo.
Earlier this year, the group cancelled its dividend three days before it was due over the lawsuits.
“Although the war is now in its third year, the 2023 financial year represents the first full year that we operated during a time of war,” added Genovese.
“The challenges that we continue to face cannot be understated, however, our results demonstrate that we have learnt to be nimble and how to adapt and respond to ever changing circumstances.”