FX.co ★ Ferrexpo To Make $1.3 Mln Partial Payment Of Bail On Royalty Related Probe; Stock Up

Swiss iron ore company Ferrexpo PLC, which has assets in Ukraine, has updated the public on the legal proceedings against its Ukrainian branch, Ferrexpo Poltava Mining (FPM). The company has revealed its decision to make a partial payment regarding the bail approved for Viktor Lotous, the General Director and Chairman of the FPM Management Board, by the Kyiv Court of Appeal on April 29. This decision is in connection with an ongoing royalty-related investigation.

Ferrexpo will contribute UAH 50 million or roughly $1.3 million towards the bail amount. According to Ukrainian law, there is no legal requirement to pay the remaining balance of the bail.

Lotous, a senior manager at FPM, received a notice of suspicion on October 31, 2023, regarding possible underpayment of iron ore royalties. On November 13, 2023, an initial court approved a bail of approximately UAH 800 million or around $20 million for Lotous. The Kyiv Court of Appeal, following an appeal, later approved a bail of UAH 650 million or approximately $16.5 million on April 29.

The company commented that the court didn't provide any reasoning for the hefty bail amount or how it aligns with the suspect's financial status. This bail is distinct from previous ones disclosed in the company's announcement on November 2, 2023, related to a separate investigation into the sale of waste products.

Ferrexpo assured that its operations remain unaffected. Further announcements will be made as necessary. The company recently reported a significant increase in production and sales volumes for the first quarter, which is the highest since the full-scale invasion of Ukraine began in February 2022. Continuous production in the Ukrainian operations carried on without any hindrances in April.

Regarding the case of LLC PCC Kysen, Ferrexpo revealed that a rescheduled preparatory hearing slated for April 29 at the Commercial Court in Poltava Oblast was postponed. It has now been rescheduled for June 4.

In London, Ferrexpo shares are currently trading at 51.80 pence, witnessing a rise of 2.98 percent.