Ferrexpo Faces Liquidity Crunch; Eyes $100 Million Capital Raise

Ferrexpo Plc has issued a stark warning regarding its liquidity position, stating that the company could run out of cash by the end of August without an immediate infusion of capital. The announcement triggered a 13% decline in the London-listed producer's share price on Wednesday. The financial strain is a direct result of the ongoing conflict in Ukraine, which has severely hampered the company's ability to operate. Current output has plummeted to approximately 25% of the levels seen before the Russian invasion, creating a significant gap in revenue generation. To mitigate the crisis, Ferrexpo is considering an equity raise of at least $100 million. If successful, this funding is intended to provide a liquidity runway for the next 18 months, allowing the company to maintain basic operations and navigate the current geopolitical instability. The market reaction reflects investor concerns over the company's solvency and the continued volatility of operating in a war zone. The prospect of a dilutive equity raise further pressures the stock as the company struggles to recover its pre-war production capacity.