Ferrexpo sold the «Iron Destiny» for $7.7 million

The sale of the vessel is due to limited operational capabilities and rising maintenance costs

Ferrexpo, an iron ore producer with assets in Ukraine that is listed on the London Stock Exchange, has signed an agreement to sell its transshipment vessel, the *Iron Destiny*, for $7.7 million. This was announced in a press release from the company.

As noted, since the start of the full-scale war, the group’s ability to use the transshipment vessel has been limited, and its operation for its intended purpose has been impossible. Despite this, the company continued to incur monthly maintenance and capital expenses to keep the “Iron Destiny” in seaworthy condition.

Due to uncertainty regarding the end of the war and the resumption of the ability to fully utilize the “Iron Destiny,” taking into account rising maintenance and capital costs associated with maintaining the vessel, and the fact that the end of its operational life is approaching, the board of directors decided to sell it.

The agreement remains subject to the transfer of the vessel and the fulfillment of standard closing conditions; it is expected to be finalized later in April.

As a reminder, based on first-quarter results, Ferrexpo reduced its iron ore production by 72% year-on-year – to 592,750 metric tons. Compared to the previous quarter, the figure decreased by 45%.

In January–March, the company’s production activities were largely suspended due to Russian attacks on Ukraine’s energy sector. A limited resumption of operations at reduced capacity levels occurred only at the end of February.