Ferrexpo PLC has released an update on its subsidiary, Ferrexpo Poltava Mining (FPM), and a senior manager, Viktor Lotous. The company reported a significant increase in production and sales volumes for the first quarter of 2024, the highest since the full-scale invasion of Ukraine commenced in February 2022. The ongoing production at the Group's Ukrainian operations continues to perform according to plan and without disruption in April.
Regarding LLC PCC "Kysen," a preparatory hearing at the Commercial Court in Poltava Oblast to consider the application from Kysen was rescheduled for 4 June 2024. This follows a previous postponement of the hearing on 29 April 2024.
In connection with a royalty-related investigation, a notice of suspicion was delivered to FPM's senior manager, Viktor Lotous, regarding potential underpayment of iron ore royalties. A court of first instance approved a bail for Mr. Lotous, and the Kyiv Court of Appeal later approved a bail of UAH 650 million (approximately US$16.5 million). The Group has decided to make a partial payment of the bail in the amount of UAH 50 million (approximately US$1.3 million) after a detailed assessment by the Board of Directors. The company emphasized that there is no legal obligation to pay the remainder of the bail amount.
The operations of Ferrexpo remain unaffected by these developments. The company has stated that further announcements will be made as appropriate. This announcement contains inside information, and the person responsible for the release of this announcement is Mark Gregory, Group Company Secretary.
For further information, individuals can contact Ferrexpo or Tavistock. Ferrexpo is a leading iron ore pellet producer with mining and processing operations in Ukraine.