Ferrexpo shares jump 29% as Ukraine pellet production restarts

London-listed Ferrexpo PLC climbed 8.3 pence to 36.88 pence in early trading Monday, a 29 percent gain from Friday's close, after the iron ore pellet producer brought one pellet line back online at its Ukrainian operations over the weekend.

"We are pleased to restart production in Ukraine and I would like to thank our workforce, who have once again demonstrated their commitment and determination in being able to bring the operation back online over the weekend," Lucio Genovese, interim executive chair at Ferrexpo, said.

The restart follows a $100 million equity fundraise announced Friday, in which the company placed 448.8 million new shares at 16.5 pence each. Ukrainian businessman Andriy Verevskyi committed $50 million as a cornerstone investor, subscribing for 224.4 million shares to hold about 21 percent of the enlarged share capital. Largest shareholder Fevamotinico Sarl subscribed for 179.5 million shares, maintaining a stake between 44 percent and 49 percent.

Production was suspended August 5 after a vessel carrying DR-grade pellets was struck by a Russian drone attack in the Black Sea, and shares had been halted since May 1 when the company missed a regulatory deadline to publish audited 2025 results. With operations restarted, Ferrexpo plans to focus exports on European customers, citing ongoing attacks on Black Sea ports and vessels.

Shares traded as much as 60 percent above the pre-suspension level during Monday's session before paring gains to around 32 percent, according to market data. The company cited the blockade of Ukrainian ports and working capital issues when it suspended production in August.

The single-line restart represents a measured return to output for Ferrexpo, which had been fully idled since early August. Both Russian and Ukrainian forces have intensified long-range air strikes in recent weeks, though US peace envoys Jared Kushner and Steve Witkoff met Ukrainian President Volodymyr Zelenskiy in Kyiv on Sunday, adding momentum to peace negotiations.

Sustained production will depend on the security situation around Ferrexpo's operations and its logistics routes to European customers. The company's ability to ramp up additional pellet lines and restore pre-disruption output levels will determine whether the share price recovery holds beyond the initial trading session.

This article is for informational purposes only and does not constitute investment advice.