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Ferrexpo, a miner in Ukraine, has sent a notice to Ukraine about mining rights after it suffers unforeseen losses

Ferrexpo, a miner in Ukraine, has sent a notice to Ukraine about mining rights after it suffers unforeseen losses

Ferrexpo, a miner with a focus on Ukraine, announced a loss of $2 million due to an impairment charge. It also said that it had sent a formal warning to Ukraine regarding its efforts to nationalise Poltava Mining and Processing Plant, the company's biggest mine.

Shares of the company fell as much as 14.8 percent. Since the beginning of the Russia-Ukraine War in February 2022, they have dropped by 67%.

The company reported a loss of $50 million for 2024, due to an impairment charge of $72 million caused by a decrease in the carrying value and cash flow.

Ferrexpo projected a profit of 22 million dollars, excluding the charge. Peel Hunt, the brokerage firm, also expected the company would post a profit.

The company also said that the operating conditions are still challenging, as the Russia-Ukraine conflict is now in its fourth year and iron ore costs or prices have not improved.

Ferrexpo has confirmed that it sent a formal notification to Ukraine regarding attempts to transfer 49.5% of the company's corporate rights to the Poltava division to federal agencies, amid investigations into alleged misappropriation funds related to illegal mine.

The Ukrainian government has not yet received any official documents or requests. (Reporting from Pushkala Aripaka in Bengaluru and Yamini Kaalia; editing by Savio d'Souza.)

(source: Reuters)