Metals and Mining
February 24, 2015
Last month, the gloomy mediumterm iron ore market outlook pushed Ferrexpo to propose a restructuring of its USD 500mn bonds with maturity in April’16. Given the company’s cash balance of USD 608mn (as of Sept 30) and USD 214mn (out of USD 500mn) of bonds restructured, weak cash flows will force Ferrexpo to refinance part of its remaining debt no later than 2017, our calculations show. On the equity side, we lower our target price to GBP 0.48 based on 2015E EBITDA of USD 256mn (45% YoY)
