Ferrexpo Shares Jump on $15 Million Shareholder Loan, Boosting Recovery Hopes

Shares of Ferrexpo (LSE:FXPO) surged on Tuesday after the iron ore producer secured a $15 million loan from its largest shareholder, providing a crucial liquidity bridge and bolstering investor confidence in its operational turnaround.

The stock climbed 7.0% to trade at 31.24 pence following the announcement, a move that stood in contrast to a subdued broader market in the UK and the U.S.

Shareholder Backing Reinforces Fundraising

Ferrexpo announced it entered into an unsecured loan agreement with Fevamotinico S.à r.l., which holds 49.27% of the company's voting rights. According to the company, the loan acts as a pre-payment for Fevamotinico's planned participation in a previously announced $100 million equity fundraising.

This move by the controlling shareholder signals strong insider commitment to Ferrexpo's recovery. The proceeds are designated for working capital and to support the company's pelletising operations, which recently resumed.

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Building on Positive Momentum

Today's stock rally continues a sharp upward trend that began in the previous session. The positive sentiment was initially sparked by several key developments:

• The UK's Financial Conduct Authority (FCA) formally restored Ferrexpo's securities to the Official List, ending a trading suspension that had been in place since May 1, 2026.
• The company confirmed that one of its pellet lines at its Ukrainian facilities had successfully returned to production over the weekend.

Taken together, the sequence of a completed audit, a major fundraising plan, the stock's relisting, a production restart, and now tangible financial support from its main backer has significantly shifted market perception. Investor sentiment has moved from what the market viewed as existential concern toward cautious optimism, even as the stock remains well below its 52-week high of 87.1p.