Ferrexpo plc
Letter from Lucio Genovese,
Executive Chair
End of year
Baar, Switzerland
31 December 2024
Ukraine now ends another tragic year
of struggle. The Ukrainian people continue to resist, far beyond
sceptics' expectations in February 2022, and with a spirit that
speaks to the national character of a country now defined by
hardship and resilience. Ferrexpo and its employees are only
a small part in this picture - but an important one, emblematic of
how Ukraine continues to thrive in the most unexpected
ways.
In April, we reported a two-fold
increase in production and sales for the first quarter of 2024
compared to the last quarter of 2023. The first quarter was our
strongest of the year, a period in which we took advantage of the
year's highest iron ore prices. It is important to acknowledge the
tremendous effort of our workforce to realise this achievement. Our
8,000-strong team, from mine excavator operators to port workers,
through the darkest and coldest days of winter, enduring air raids
and blackouts, worked tirelessly in a concerted manner to make this
happen.
For me, the significant improvement
in production and sales is a defining highlight of 2024, and I
thank each and every person associated with Ferrexpo who
contributed. I have observed that this extraordinary effort is part
of the indomitable Ukrainian spirit. Working hard to preserve jobs,
whilst contributing fiscally and socially to local communities and
broader Ukrainian society, is an important contribution to the war
effort.
A year ago, we were preparing to load
our first vessel from Ukraine since the start of the full-scale
invasion. It was a milestone moment when it departed in
mid-January, destined for China. As customer confidence grew, we
were able, in February, to expand our seaborne sales to customers
in Europe and the Middle East thanks to the opening of the Black
Sea ports. Earlier in the month, the last vessel left, also to
China, culminating in over 30 vessels which have left from Ukraine
this year.
Of course, the war continues to pose
significant challenges and bring troubling news. Recently, we
received the tragic news that another two colleagues were killed
serving in the Armed Forces of Ukraine. One worked as a pumping
unit operator at our crushing and beneficiation plant, until he was
drafted into the Armed Forces in April 2022. The other worked as an
electric and gas welder in our repairs division, drafted into the
Armed Forces in July this year. These men are just two of a total
45 Ferrexpo colleagues who have been killed defending Ukraine since
the full-scale invasion. We mourn their passing and honour their
brave strength. Next year, we will continue to support our employees and local communities
through the Ferrexpo Humanitarian Fund, as well as offer
psychological support for returning veterans.
We are closely monitoring
geo-political changes around the world and the potential impacts on
Ukraine. We hope that the war in Ukraine may cease; however, we
must remain vigilant, and our priority must steadfastly remain the
safety and wellbeing of our workforce and communities.
As 2024 closes, we can reflect on
some remarkable achievements, capped by our re-entry into the FTSE
250 Index on the London Stock Exchange last week. This would not
have been possible without the dedication and hard work of
Ferrexpo's employees who have displayed an unyielding commitment in
the face of relentless adversity. Our business remains relevant,
thanks to our people, our customers, shareholders and other
stakeholders. Thank you for your dedication and commitment to
Ferrexpo and Ukraine.
Slava Ukrainii