Ferro Alloy Resources (FAR) H1 2024 earnings summary

Executive summary

• Interim results for H1 2024 show a significant revenue decline due to lower vanadium prices and reduced grades in processed catalysts.

• Ongoing feasibility study for the Balasausqandiq vanadium project, with Phase 1 plant capacity increased to 1.65m tonnes/year.

• Carbon concentrate from tailings confirmed suitable as a partial substitute for carbon black in tyre manufacturing.

• Third tranche of $5m bonds issued under the Kazakhstan Bond Programme to support operations and feasibility study.

Financial highlights

• H1 2024 revenue: $2.1m, down from $3.3m in H1 2023, reflecting a sharp drop in vanadium pentoxide prices.

• Loss before and after tax: $3.99m (H1 2023: $1.53m loss).

• Gross loss: $1.47m (H1 2023: $0.25m loss).

• Cash balance at period end: $2.5m; $1.1m as of 20 September 2024.

• Net cash outflow from operations: $2.6m (H1 2023: $1.0m outflow).

Outlook and guidance

• Vanadium prices remain at historic lows due to weak Chinese construction and discounted Russian supply.

• Long-term demand expected to rise with vanadium redox flow battery adoption and changes to Chinese rebar standards.

• Feasibility study for Balasausqandiq Phase 1 expected to complete in Q2 2025.

• Board considering further bond issuance to ensure sufficient cash for feasibility study completion.