Page 71 - UKRRptJun20

● Ferrexport
Steve Lucas, the chairman of Ukraine’s largest iron ore pellet exporter Ferrexpo​, plans to retire and resign from the company's board of directors, ​according to Ferrexpo’s statement for its 2020 AGM held on May 28.​ ​Lucas decided to retire because of personal reasons and other business commitments, Ferrexpo said, adding that it plans to appoint ​Jim North, the recently-appointed acting CEO​, to its board. Lucas was re-elected to the board at the AGM with 72.2% of total votes (and 31.5% of independent shareholders’ votes). Other non-independent directors elected to Ferrexpo’s board at this AGM were Lucio Genovese (98.9% of total votes and 97.4% among independents), the majority owner and former CEO Kostyantyn Zhevago (67.6% and 19.6%), and CFO Chris Mawe (93.9% and 85.0%).​ ​The independent directors elected to Ferrexpo’s board were Graeme Dacomb and Fiona MacAulay (both with 99.1% of independent shareholders’ votes).​ ​Only 31.8% of independent shareholders voted for Vitalii Lisovenko as an independent director. Ferrexpo said that Lisovenko is deemed to have been re-elected to the board until Ferrexpo either conducts a second vote on his board candidacy (within 90 to 120 days after the AGM) or announces its intention not to conduct a second vote. Lisovenko’s current status will not last longer than 120 days, the company said.​ ​Ferrexpo’s independent shareholders are revolting again as those voting for Zhevago’s board appointment at this 2020 AGM, 19.6%, is even lower than ​24% at the 2016 AGM​ following the Finance & Credit bank affair. The displeasure of the independents with the board is also evident from their low support for Lucas, at only 31.5%.
Jim North, the COO of Ukraine’s largest iron ore pellet exporter​ ​Ferrexpo​, will serve as the company’s acting CEO ​as of the conclusion of Ferrexpo’s AGM that will be held on May 28, the company reported in a May 18 press release. North, who has been with Ferrexpo since 2014, will not join Ferrexpo’s board of directors but will be invited to attend all board meetings, Ferrexpo said. He will combine his COO and acting CEO roles, which will allow Ferrexpo to increase its attention on the future growth of the business, subject to market conditions and cash flow generation, the release said.​ ​Chris Mawe, the current acting CEO, has been asked to return to his previous role as Ferrexpo’s CFO, according to the release, which did not specify whether the company’s current acting CFO, Roman Palyvoda, will remain with Ferrexpo.​ ​Recall, ​Mawe was appointed acting CEO in October​ after Ferrexpo’s majority owner, Kostyantyn Zhevago, decided to step aside from his CEO role to focus on his legal matters.​ ​Both Mawe and Zhevago stand to be re-elected on May 28 as members of Ferrexpo’s board of directors, according to Ferrexpo AGM’s agenda published on April 28.
Ukraine’s largest iron ore pellet exporter​ ​Ferrexpo​ produced 955 kt of pellets in April, which amounts to 31.8 kt per day, or a 23.1% m/m increase​, according to Concorde Capital's analysis of data reported by Interfax-Ukraine on May 25. In 4M20, Ferrexpo’s pellet output amounted to 3.68 mmt (30.4 kt per day), 5.6% more y/y. Ferrexpo is back to producing at normal rates in April and the March slump in pellet output to 25.8 kt per day seems to be a one-off. Concorde tentatively expect Ferrexpo’s 2020 production volume to be 10.5-11.5 mmt (28.7-31.4 kt per day), or up to 9% more y/y. The recent production volume guidance from the company was for a 9.3% y/y increase to 11.5 mmt (31.4 kt per day) in 2020.
71​ UKRAINE Country Report​ June 2020 ​ ​www.intellinews.com