Ferro Alloy Resources (FAR) H2 2024 earnings summary

Executive summary

• Focused on completing the feasibility study for the Balasausqandiq vanadium deposit, with Phase 1 targeting 8,000 tonnes/year vanadium pentoxide output and potential for significant expansion.

• Shifted operational focus in late 2024 to R&D and development of carbon black substitute, with production continuing only when profitable.

• The Balasausqandiq deposit offers low-cost production due to unique sedimentary ore, with valuable carbon as a co-product.

• Feasibility study completion expected in H1 2025, anticipated to drive investor interest and funding.

Financial highlights

• Revenue declined to $4.7m (2023: $5.7m) due to lower vanadium prices and operational challenges.

• Cost of sales increased to $7.6m (2023: $6.8m), mainly from higher depreciation and wages.

• Net loss widened to $9.43m (2023: $5.25m loss), including a $0.95m impairment charge.

• Cash at year-end was $3.78m (2023: $1.95m), supported by $8.4m net inflow from bond financing.

• Non-current liabilities rose to $17.2m (2023: $7.4m) due to new bond tranches.

Outlook and guidance

• Feasibility study for Phase 1 due in H1 2025, expected to support further funding and project advancement.

• Anticipates significant growth in vanadium demand, especially from battery storage and steel sectors.

• R&D efforts focused on high-purity vanadium for batteries and carbon black substitute for rubber markets.