Ferrexpo appoints North acting CEO

Jim North, the COO of Ukraine’s largest iron ore pellet
exporter Ferrexpo (FXPO LN), 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 Apr. 28.

Dmytro Khoroshun: Ferrexpo’s
mention of North’s focus on future growth, which we take to mean expanding
concentrate and pelletizing capacity beyond the current 12 mmt per year, seems
to imply he might remain at the company’s helm for a few years.

For example, Ferrexpo’s own very tentative timeline,
which the company discussed a year ago, foresaw several expansion steps,
the first to be completed by 2022 and the last to be finished by 2026.

If North indeed serves as acting CEO for a few years,
we think it will benefit Ferrexpo’s shareholders by allowing Zhevago to focus
on his legal matters.