Metals and Mining
September 28, 2015
Last week, Ferrexpo effectively lost USD 174mn (62% of the group’s total cash) that it held in claimed insolvent relatedparty bank. After the restructuring of its USD 500mn bonds completed in July, the group is now in restructuring talks on two loans with a total value of USD 543mn. Given Ferrexpo’s fragile liquidity position and the gloomy ore market outlook, we believe the group has to restructure both these loans by June 2016 to avoid running out of cash. Our revised TP for the FXPO stock is GBp 23. SELL.
