Ferrexpo PLC

Ferrexpo PLC (LSE: FXPO) is a constituent of FTSE All Share & an iron ore pellet producer. The Company produces, develops and markets its principal product, iron ore pellets, for sale to the metallurgical industry. The Company's operations are vertically integrated from iron ore mining through to iron ore concentrate, and pellet production and subsequent logistics. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock. 

Key Investment Rationale – Speculative Buy at GBX 52.50

• Demonstrated Operational Flexibility Amid Disruption: Ferrexpo’s ability to adapt its production mix between pellets and concentrate highlights decent operational agility. Despite the VAT refund suspension and reduced production capacity, the company successfully shifted 36% of its output to high-grade iron ore concentrate — triple the proportion of the previous year. This strategic flexibility not only allowed Ferrexpo to meet changing market demand, particularly from China, but also showcased its capacity to maintain relevance in a volatile operating environment.

• Resilient Financial Management and Liquidity Discipline: Even in a period marked by lower prices and liquidity constraints, Ferrexpo managed to preserve a net cash position of US$50 million with minimal debt exposure. The swift cost-cutting measures, including reductions in non-essential capital expenditure and operating costs, demonstrate prudent financial stewardship. This disciplined approach enabled the Group to remain operational and financially solvent under exceptionally challenging circumstances.

• Continued Contribution to Ukraine’s Economy and Workforce Support: Ferrexpo’s sustained operations during wartime continue to provide meaningful economic and social value to Ukraine. Since 2022, the company has contributed over US$340 million in taxes and US$180 million in salaries, while maintaining employment opportunities for hundreds of workers — even as many employees serve in the Armed Forces. This ongoing commitment underscores Ferrexpo’s broader role as a stabilizing economic force and responsible corporate citizen amid national adversity.

FXPO Daily Chart & Valuation

 FXPO Daily Technical Chart, Source - Refinitiv

For conducting the valuation, the following peers have been considered: Antofagasta PLC (LSE: ANTO), Rio Tinto PLC (LSE: RIO), and others.

As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy’ rating has been given on Ferrexpo PLC (LSE: FXPO) at the Current Market Price of GBX 52.50, as of November 13, 2025, at 08:15 AM GMT.

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 13 November 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.