Ferro Alloy Resources (FAR) investor relations material

Opportunity overview and investment case

• Developing a large vanadium and carbon deposit in southern Kazakhstan, with phased project development and feasibility study completed for Phase 1.

• Listed on the London and Astana exchanges, with Vision Blue Resources as a strategic investor.

• Aims to be the world's lowest-cost vanadium producer, leveraging high-value carbon by-product for extra margin and reduced price risk.

• Project economics show a post-tax NPV of $932m, IRR of 31%, and cash cost of $0.36/lb net of by-products.

• Scalable asset with clear expansion potential and strong downside protection, directly linked to energy storage growth.

Project details and advantages

• Balasausqandiq deposit is a globally significant vanadium resource, with Phase 1 treating 1.65m tonnes of ore per year and potential for fourfold expansion.

• Black shale geology enables lower capital and operating costs, no need for high-temperature roasting, and higher recovery rates.

• Open pit mining with low strip ratio and all processing on site, minimizing transport and infrastructure costs.

• Existing infrastructure includes power, road, and rail access, reducing further CAPEX needs.

Financials and funding

• Phase 1 CAPEX estimated at $355m, with funding requirement of $311m after pre-production income.

• Funding strategy targets a 70% debt and 30% equity split, with preliminary EPC quotation received.

• Project timeline targets financing and FEED in 2026, construction in 2027, and commissioning/production in 2028.