By Scott Kanowsky
Investing.com -- Shares in Ferrexpo PLC (LON:FXPO) slid on Monday, after the London-listed miner slashed output of its key iron ore pellets due in part to a Russian missile strike that impacted its shipping operations in southwest Ukraine.
In a statement, Ferrexpo said the blast "reduced" the company's ability to use barges in the region that serve European customers. The group also warned that the ongoing conflict in Ukraine has led to "periodic disruptions" on the country's railway network, which has become central to its efforts to export iron ore pellets around Europe.
The company said iron ore pellet production at the end of May had fallen by 8% compared to the same time last year, with output now at 4.4 million tons.
"In light of the news announced today, we are lowering our short term production schedule for the summer months, and we will look to increase production once we have greater clarity on logistics going forward," said Ferrexpo CEO Jim North.
Ferrexpo added that it is in advanced talks with port operators in central Europe for seaborne exports as it tries to address the closure of Ukraine's Black Sea ports.
"The gradual reopening of our access to the seaborne market is a positive for the Group and we will prioritise these efforts as we understand the importance of reconnecting with this segment of our customer portfolio,” North said.