The Daily Telegraph

Kharkiv fightback boosts iron ore miner Ferrexpo

- By Matt Oliver

SHARES in iron ore producer Ferrexpo have rallied following reports of the Ukrainian army’s counter-attack against Russia in the Kharkiv region.

The FTSE 250 company, which operates mines in central Ukraine, has roughly halved in value since Russia attacked Ukraine in February.

But yesterday Ferrexpo’s shares surged as much as 18pc higher amid hopes that the fightback was gathering pace. After months of deadlock on the eastern battlefron­ts, Kyiv claims its forces have recaptured 1,160 square miles of territory in just a few days.

The Ukrainian advance has raised the prospect of more normal operations for Ferrexpo, one of the world’s biggest exporters of iron ore pellets, which has major operations near the mining city of Horishni Plavni. Last year Ferrexpo produced 11.2m tonnes of pellets, but that halved since the conflict erupted.

Following reports of the fightback, shares in Ferrexpo rose 11.9pc or 18.6p to 174.7p. It coincided with a broader rally for stocks, sparked by hopes that an end to the conflict could be in sight. The FTSE 100 rallied 1.4pc.

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